In a remarkable feat, the United Bank for Africa (UBA) has exceeded the N1 trillion market capitalization milestone, marking a significant achievement on the Nigerian Exchange Limited (NGX). As of the market’s closing on Monday, UBA’s market cap reached N1.022 trillion, representing a substantial gain of N32 billion in just one day. This positions UBA as the third most-capitalized bank in Nigeria, trailing behind Zenith Bank and Guaranty Trust Holding Company Plc.
The noteworthy surge in UBA’s market value is attributed to its outstanding performance, with the bank’s shares recognized as the top-performing stock in the banking sector throughout 2023. This performance underscores UBA’s impressive growth trajectory and reinforces its position as a key player in the financial industry.
Over the course of the year, from January 2023 to the present day, the price of UBA shares has experienced an exceptional appreciation of over 250%, soaring from N7.60 per share to the current N29.90 per unit. This remarkable upward trend reflects the confidence and positive sentiment surrounding UBA among investors.
Commenting on this significant milestone, Tony Elumelu, the Chairman of UBA Group, emphasized that the bank’s outstanding journey in 2023 showcases its strategic prowess and unwavering commitment to delivering unparalleled value to both shareholders and stakeholders. UBA’s stellar performance is a testament to its dedication to excellence and its ability to navigate the dynamic financial landscape effectively.
He said, “As UBA celebrates these significant milestones, we would like all our stakeholders to know that we remain steadfast in our mission to drive sustainable growth, foster innovation, and create value for its diverse clientele across Africa. We are witnessing the impact of the business transformation drive UBA embarked on years ago and executed well.
“Naturally, the market has taken note of and is duly rewarding our efforts. To our stakeholders, we promise that we will continue to work harder, deliver on what we know how to do well and create impacts across geographies where we currently operate.”
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressing delight at the bank’s performance in the past few months said, “Market participants have begun to appreciate the latent capacity in UBA’s business model as the bank unlocks enormous potentials in its pan African and international operations. Its unique competitive advantage lies in people, processes, and technology.
“With operations and offices in 24 countries and on four continents, UBA is the only African bank with deposit-taking license in the USA. The Bank’s fundamentals remain strong with impressive financial results that have continued to deliver sustainable value for its shareholders. At its current price, UBA trades at price-to-earning and price-to-book multiples of 2.27 and 0.59 which are a reflection of the market’s expectations of the Bank’s future growth potentials.”
In 2023, UBA’s Shareholders’ Fund grew from N992bn as of December 2022 to N1.8trn as of September 2023. UBA was also appointed as the Local Arranger and Local Depository Bank for the $3.3bn FX Liquidity support facility for Nigeria in partnership with the African Export and Import Bank.