UBA soars past N1tn market cap on back of robust financial performance

Business a.m

Africa’s Global Bank, United Bank for Africa (UBA) Plc, has made a major leap forward,  joining the elite group of companies with a market capitalisation of over N1 trillion as its share price value hits N29.90 per share.

At the close of trading on Monday, UBA’s market capitalisation reached an impressive N1.022 trillion, cementing its position as the third most capitalised financial institution in Nigeria. This is a remarkable increase from its market cap of N283.8 billion at the beginning of 2023, highlighting the bank’s impressive growth over the past year. The bank currently has 34,199,421,366 shares in issue.

UBA’s impressive market capitalization of N1 trillion is further bolstered by the fact that its share price is the highest performing stock in the banking sector in 2023. Since the beginning of the year, the price of UBA shares has increased by over 250 per cent, from N7.60 per share to N29.90 per share.

In a statement, Tony Elumelu,UBA Group chairman said that the bank’s remarkable journey in 2023 culminated in its shares being recognised as the highest performing stock within the banking sector. This recognition, he noted, highlights the bank’s strategic prowess and commitment to delivering unparalleled value to its shareholders and stakeholders. 

“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,” Elumelu said.

Elumelu further noted that the bank’s strong performance is a direct result of the business transformation drive it has been on for years. He said that the market has taken note of the bank’s efforts and is rewarding it accordingly. He promised UBA’s stakeholders that the bank will continue to work hard, deliver on its core strengths, and create a positive impact across the geographies where it operates. 

Oliver Alawuba,UBA’s group managing director and chief executive officer, expressed his delight at the bank’s performance over the past few months. He noted that the bank’s unwavering commitment to excellence and execution has allowed it to set benchmarks in the banking sector and reinforce its position as Africa’s global bank of choice. 

Alawuba emphasised that UBA’s competitive advantage lies in its people, processes, and technology. He noted that market participants are beginning to appreciate the bank’s latent capacity, as it is unlocking enormous potential in its pan-African and international operations. He pointed out that with operations and offices in 24 countries and on four continents, UBA is the only African bank with a deposit-taking license in the United States.

He 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.”