Union Bank appoints Bayo Adeleke as board chairman, 7 others as members

The Union Bank of Nigeria Plc has announced Bayo Adeleke as its board chairman. Adeleke, a former managing director and CEO at First Bank was appointed alongside seven other members to the board.

According to a statement released by the bank, the new board chairman is well-experienced in the banking industry, which will be instrumental to the bank’s growth. The statement added that Adeleke’s commitment to excellence is a strategic tool for Union Bank’s vision and transformation. 

The new appointees include two executive directors, Kelechi Nwaoba and Taiwo Shote, and five non-executive directors which are Mohammed Balarabe, Chiamaka Ezenwa, Ibrahim Oruma, Oluyinka Morgan and Eileen Shaiyen.

The bank also expressed that other new members bring a wealth of experience and expertise to the board. Balarabe has a distinguished career in corporate banking and regulatory compliance, while Ezenwa has global experience in financial services with broad expertise in sustainable infrastructure.

Reacting to the appointment, Union Bank’s Managing Director and Chief Executive Officer, Mrs Yetunde Oni, pointed out that the development is a revelation of the bank’s commitment to building a robust leadership framework.

“These appointments are a testament to Union Bank’s unwavering commitment to building a robust leadership framework. The collective expertise of our newly appointed chairman, EDs, and non-executive directors will significantly contribute to our strategic goals and reinforce our position as a leader in the industry,” she said.

Oni also expressed her satisfaction with the calibre of appointed board members. She described them as a compendium of experience that will help and guide the bank in achieving its strategic vision.

Union Bank promised all its customers what to expect from the new board members. “The new additions to its leadership structure would continue to evolve, innovate, and ensure excellent services that would meet their demands and propel the financial institution to long-term, meaningful growth,” the statement reads.

The new board members are expected to contribute enormously to the bank’s strategic goals and revive its position as a leader in the financial industry.

A mixed feeling for Union Bank

The new board appointment comes during a period when Union Bank is struggling to stand firm in the banking and financial industry.

Earlier this year, the Central Bank of Nigeria (CBN) dissolved the board of Union Bank and subsequently appointed a new managing director and executive director for the bank. This came following the apex bank investigation into Union Bank’s delisting from the Nigerian Stock Exchange (NGX) after 52 years.

On the positive side, Yetunde Oni stated in August that the bank has initiated its recapitalization process. Recall that in March, CBN directed banks operating in the country to increase their capital base to drive the $1tn economy projection of the Tinubu administration.

“In line with the realities of our environment, the bank has initiated the process of recapitalization. The banking sector recapitalization program, introduced by the Central Bank of Nigeria, mandates banks to increase their minimum paid-in common equity capital to a specified amount by April 2026, per their license category and authorization. 

This strategic initiative is not only aimed at aligning our capital adequacy with regulatory standards but also at surpassing them, thereby fortifying our financial stability and positioning us to capitalize on emerging market opportunities,” Oni said.

Oni also disclosed that Union Bank’s half-year results showed a 58.19 per cent rise in its gross earnings for the half-year to N333bn compared to N210.5bn during the same period in 2023. Its profit before tax showed N79.8bn, rising from N66.5bn in the previous year.

While reacting to the positive financial outlook, Oni declared that the result reflects the bank’s recent financial inclusion strategy.

“So far, we are seeing the direct impact of our strategy on our financial performance. We achieved a substantial increase in gross earnings by 58 per cent to N333bn compared to N210.5bn in H1 2023. Net Operating Income after Impairments increased by 32 per cent to N143.6bn from N108.5bn in H1 2023, attributed to enhanced interest income, fees, commissions, and margin expansion. Similarly, we achieved a profit before tax of N79.8bn, representing 20 per cent growth compared to N66.5bn in H1 2023,” she said.

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