United Bank of Africa Crosses N1 Trillion in Market Capitalisation

On Monday, it was reported that the United Bank of Africa (UBA) had crossed N1 trillion in market capitalisation.

UBA's market capitalisation reached N1.022 trillion from N990 billion it finished on Friday, which shows N32 bn in one day, to stand as the third most capitalised Bank in Nigeria behind Zenith Bank and Guaranty Trust Holding Company Plc.

Shares at UBA were said to be the highest-performing stock in the banking sector in 2023, which reveals the bank's growth. The bank share price has been said to increase by over 250% from N7.60 per share to N29.90 per unit.

In a statement issued on Monday, the Chairman of UBA Group, Tony Elumelu, said that the bank’s remarkable journey in 2023 highlighted its strategic prowess and reflected its commitment to delivering unparalleled value to shareholders and other stakeholders.

He said, 

• As UBA celebrates these significant milestones, we want all our stakeholders to know that we remain steadfast in our mission to drive sustainable growth, foster innovation, and create value for its diverse African clientele. We are witnessing the impact of the business transformation drive UBA embarked on years ago and executed well.

• Naturally, the market has noted and is duly rewarding our efforts. To our stakeholders, we promise to continue to work harder, deliver on what we know how to do well, and create impacts across geographies in the area where we currently operate.

Speaking about the bank's performance, Oliver Alwuba, UBA Group Managing Director/Chief Executive Officer, said,

• Market participants have begun to appreciate the latent capacity in UBA’s business model as the bank unlocks enormous potential 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 four continents, UBA is the only African bank with a 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 reflect the market’s expectations of the Bank’s future growth potential.

UBA shareholders' funds grew from N992bn in December to N1.8trn in September 2023. UBA was also appointed as the Local Arranger and Local Depository Bank for Nigeria's $3.3 billion FX Liquidity support facility in partnership with the African Export and Import Bank.