The United Bank for Africa (UBA) has made history by crossing the N1 trillion mark in market capitalisation on the Nigerian Exchange Limited (NGX) at the close of trading on Monday. UBA’s market cap surged to N1.022 trillion from N990 billion on Friday, marking an impressive N32 billion gain in just one day. This achievement positions UBA as the third most-capitalised bank in Nigeria, following Zenith Bank and Guaranty Trust Holding Company Plc.
The financial institution’s shares were recognized as the top-performing stock in the banking sector throughout 2023, showcasing the bank’s remarkable growth trajectory. Over the course of January 2023 until Monday, the price of UBA shares skyrocketed by over 250 per cent, escalating from N7.60 per share to N29.90 per unit.
Tony Elumelu, Chairman of the UBA Group, expressed pride in the bank’s exceptional performance in 2023, attributing it to the bank’s strategic prowess and commitment to delivering substantial value to shareholders and stakeholders.
Elumelu stated, “UBA remains steadfast in our mission to drive sustainable growth, foster innovation, and create value for its diverse clientele across Africa. The market recognition of our efforts underscores the impact of the business transformation we embarked on and executed successfully.”
Oliver Alawuba, UBA’s Group Managing Director/Chief Executive Officer, emphasized the market’s recognition of the bank’s latent capacity as it unlocks enormous potentials within its pan-African and international operations. Alawuba highlighted the bank’s unique competitive advantage, anchored in people, processes, and technology, further pointing out that UBA is the only African bank with a deposit-taking license in the USA.
He remarked, “The Bank’s fundamentals remain robust, delivering sustainable value for its shareholders. UBA’s current price-to-earning and price-to-book multiples reflect the market’s expectations of the Bank’s future growth potentials.”
In the course of 2023, UBA’s Shareholders’ Fund soared from N992 billion as of December 2022 to N1.8 trillion by September 2023. Additionally, UBA was appointed as the Local Arranger and Local Depository Bank for the $3.3 billion FX Liquidity support facility for Nigeria in collaboration with the African Export and Import Bank, further solidifying its position as a key player in the financial sector.
This milestone cements UBA’s standing as a powerhouse in the Nigerian banking landscape and reaffirms its commitment to continuous growth and innovation in delivering value to stakeholders and customers across Africa.