• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Union Bank’s shareholders endorse N54.4 billion balance sheet reduction

Damilare Famuyiwa by Damilare Famuyiwa
June 12, 2019
in Business News, Company News
Union Bank to convene a Court Ordered Meeting for the acquisition of all minority shareholders by Titan Trust Bank, delist from NGX
Share on FacebookShare on TwitterShare on Linkedin

Shareholders of Union Bank Plc have unanimously approved the proposed reduction of N54.4 billion from the bank’s share premium account. Nairametrics understands that this is in a bid to restructure the lender’s balance sheet for optimal performance.

The shareholders’ approval for the reduction of the bank’s share premium account follows a proposal by the lender’s board of directors. The shareholders endorsed the development during the bank’s Extraordinary General Meeting (EGM) which held in Lagos.

Highlighting the bank’s focus on delivering value to its shareholders, the Chairman of the company’s Board of Directors, Cyril Odu said;

RelatedStories

Sterling Bank 'denied' hoarding cash and Ardova announced plans to delist from the NGX

CBN fines nine banks N150m each for failing to disburse ATM cash 

January 14, 2025
Union Bank Plc

Union Bank appeals N112 million Ikoyi property sale verdict, family demands N2 billion in 25 years court case  

September 7, 2024

“Union Bank is on course towards delivering its 2019-2021 strategic objectives. As we continue our push towards being Nigeria’s most reliable and trusted banking partner, we remain focused on improving the profitability of our business and delivering value to all our stakeholders – shareholders, customers, business partners, and employees.”

Why this matters: Losses incurred from legacy transactions have hindered Union Bank’s shareholders from getting dividends for a while. The N54.458 billion deficit revealed in the bank’s financial position for the 2018 financial year is an addition to the sum of N247.868 billion approved by shareholders in 2017. By implication, the current capital reduction move by the company will eliminate the major impediment which had been preventing the company from issuing dividends to its shareholders.

It should be recalled that despite a rise of 39% to N18.1 billion in its net profit in 2018, Union Bank could not declare dividends. This happened because the bank was affected by extant laws that forbid companies with retained deficits from declaring dividends.

Is this a smart move? It is pertinent to note that the deficit represents accumulated permanent losses from legacy transactions. In a bid to offset the negative retained earnings, the directors proposed the Share Premium Reduction in accordance with sections 106 and 107 of Companies and Allied Matters Act (CAMA).

Share Premium explained: Share premium represents the difference between the issue price of a stock and the par value of that stock. Share premium account houses the non-distributable reserves of a company and can be used to write off equity-related expenses and used to issue bonus shares.

About Union Bank Plc: Union Bank of Nigeria Plc provides investment, corporate, commercial, and retail banking products, and services for individuals, small and medium-sized companies, and corporations primarily in Nigeria and the United Kingdom.

The company traded N7 during the last trading session of the Nigerian Stock Exchange (NSE).


Follow us for Breaking News and Market Intelligence.
Tags: On the MoneyUnion Bank PlcUnion Bank Share Premium Account
Damilare Famuyiwa

Damilare Famuyiwa

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

Related Posts

Sterling Bank 'denied' hoarding cash and Ardova announced plans to delist from the NGX
Breaking News

CBN fines nine banks N150m each for failing to disburse ATM cash 

January 14, 2025
Union Bank Plc
Legal & Regulations

Union Bank appeals N112 million Ikoyi property sale verdict, family demands N2 billion in 25 years court case  

September 7, 2024
Swift Networks to challenge court order restraining it from accessing N7 billion in 25 banks 
Business News

Swift Networks to challenge court order restraining it from accessing N7 billion in 25 banks 

July 24, 2023
Flour Mills to raise another N55 billion in commercial papers
Company News

Corporate Roundup: Flour Mills, Coronation Group, and others made bold moves last week

June 25, 2023
Titan Trust Bank
Breaking News

Titan Trust Bank to acquire Union Bank minority shares for N7.00 per share

June 23, 2023
Union Bank to convene a Court Ordered Meeting for the acquisition of all minority shareholders by Titan Trust Bank, delist from NGX
Business News

Union Bank to convene a Court Ordered Meeting for the acquisition of all minority shareholders by Titan Trust Bank, delist from NGX

May 16, 2023
Next Post
Wapic to raise N15 billion share capital ahead of NAICOM's deadline

Wapic to raise N15 billion share capital ahead of NAICOM's deadline

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Palmpay

first bank








DUNS

Recent News

  • NCAA petitions AGF, IGP to prosecute Fuji musician, Wasiu Ayinde over Abuja airport incident 
  • OpenAI unveils GPT-5 as ChatGPT surpasses 700 million weekly users 
  • Kaduna govt allocates N3.5 billion for road project compensation across 23 LGAs 

Follow us on social media:

Recent News

NCCA Boss

NCAA petitions AGF, IGP to prosecute Fuji musician, Wasiu Ayinde over Abuja airport incident 

August 7, 2025
OpenAI to acquire iPhone designer Jony Ive’s AI devices startup for $6.4 billion 

OpenAI unveils GPT-5 as ChatGPT surpasses 700 million weekly users 

August 7, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics