The United Bank for Africa (UBA) Plc on Monday, joined the elite group of companies with market capitalisation of over N1 trillion as its share price also hit N29.90 per share.
At the close of trading on Monday, the bank’s market capitalisation hit N1.02 trillion, making it the third most capitalised financial institution in the country – a remarkable boost from N283.8 billion at the beginning of 2023. The bank has 34.19 billion shares in issue.
The N1 trillion market capitalisation feat comes amid the bank’s share being named as the highest performing stock in the banking sector in 2023, which underscored its robust growth trajectory and unwavering market confidence.
Specifically, between the start of January 2023 and on Monday, the price of UBA shares had appreciated by over 250 per cent from N7.60 per share, the bank noted in a statement.
Commenting on the bank’s impressive performance, the Chairman, UBA Group, Tony Elumelu, said the bank’s remarkable journey in 2023, culminated in its shares being acclaimed as the highest performing stock within the banking sector.
He pointed out that this not only highlighted the bank’s strategic prowess but also reflected its commitment to delivering unparalleled value to shareholders and stakeholders alike.
Elumelu said, “As UBA celebrates these significant milestones, we will 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, our promise is 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.”
Also, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed delight at the bank’s performance in the past few months, said with its unwavering commitment to excellence and execution, the bank continues to set benchmarks in the banking sector, reinforcing its position as Africa’s global bank of choice.
He 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.
“The bank’s 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.”
Alawuba added,” The bank’s fundamentals remain strong with impressive financial results that have continued to deliver sustainable value for its shareholders.
“At current price, UBA trades at price-to-earning (P/E) and price-to-book (P/B) multiples of 2.27 and 0.59 which are a reflection of the market’s expectations of the Bank’s future growth potentials.”
UBA is listed on the Premium Board of the Nigerian Stock Exchange in recognition of the Bank’s strong adherence to international best practices on corporate governance and remains committed to creating value for its over 275,000 esteemed shareholders spread across the globe.
The outgone year, 2023, has been a splendid year for the bank, becoming the most profitable bank in Nigeria in 2023, with a shareholders’ fund that has grown from N992 billion in 2022 to N1.8 trillion as of September 2023.
UBA was also appointed as the Local Arranger and Local Depository Bank for the $3.3 billion FX Liquidity support facility for Nigeria in partnership with Africa Export and Import Bank (Afreximbank), providing solutions to economic challenges in Nigeria characterised by shortage of FX liquidity.
Likewise, in 2023, UBA won the 2023 FMDQ Gold Awards in three Categories including the Best FX Liquidity Provider; Dealing Institution of the Year and Best Money Market Liquidity Provider. This recognition is a testament to UBA’s impressive capital strength.
UBA is a leading Pan-African financial institution, offering banking services to over 25 million customers across 1,000 business offices and customer touch points in 20 African countries.
With presence in New York, London, Paris, and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.
James Emejo in Abuja
