United Bank for Africa (UBA) Plc, the global bank for Africa, has reached ₦29.90 per share in share price, joining the group of firms with a market capitalization of over ₦1 trillion.
The bank became the third most capitalized financial institution in Nigeria after its market capitalization surpassed ₦1.02 trillion at the conclusion of trading on the Nigerian Exchange Ltd. (NGX) on Monday.
Compared to the bank’s initial 2023 record of ₦283.8 billion, with 34.19 billion shares in issue, this represented a notable increase.
In a statement released in Lagos, Tony Elumelu, the Chairman of UBA Group, stated that the achievement coincided with the bank’s shares being recognized as the best-performing stock in the banking industry for 2023. This demonstrated the bank’s strong growth trajectory and unwavering market trust, according to Elumelu.
In particular, the price of UBA shares has increased from ₦7.60 per share to over 250 percent as of January 2023.
The bank’s extraordinary 2023 voyage came to an end, the chairman explained, when its shares were named the best-performing stock in the banking industry.
He emphasized that this demonstrated the bank’s strategic strength as well as its dedication to provide unmatched value to stakeholders and shareholders.
“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 our 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,” he said.
Oliver Alawuba, Group Managing Director and Chief Executive Officer of UBA, expressed satisfaction with the bank’s recent performance.
According to Alawuba, the bank’s steadfast dedication to excellence and execution allows it to consistently establish industry standards, solidifying its standing as Africa’s go-to global bank.
“As UBA unlocks enormous potential in its pan-African and international operations, market participants have begun to appreciate the latent capacity in the bank’s business model,” he stated. Its people, procedures, and technology provide it a distinct competitive advantage.
“With operations and offices in 24 countries and on four continents, UBA is the only African bank with a deposit-taking license in the USA.”
He claims that the bank’s outstanding financial performance and solid foundation have allowed it to continue providing long-term value for its investors.
The managing director pointed out that UBA is now trading at price-to-book (P/B) and price-to-earning (P/E) multiples of 0.59 and 2.27, respectively, which represent the market’s expectations regarding the bank’s potential for future growth.
According to him, the bank’s outstanding adherence to global best practices for corporate governance has earned it a spot on the Nigerian Stock Exchange’s Premium Board.
Alawuba stated that UBA is still dedicated to generating value for its more than 275,000 prestigious global shareholders.
“The outgone year, 2023, has been a splendid year for UBA, becoming the most profitable bank in Nigeria in 2023, with a Shareholders’ Fund that has grown from ₦992 billion as at full year 2022 to ₦1.8 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 solutions 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,” he said.
This recognition, in his opinion, is evidence of UBA’s remarkable capital strength.
Over 25 million customers are served by United Bank for Africa Plc, a Pan-African financial organization, through 1,000 company locations and customer contact points spread over 20 African nations.
