United Bank for Africa (UBA) Plc has achieved a historic milestone by surpassing the N1 trillion market capitalisation mark on Monday. This accomplishment positions UBA among the elite group of companies with a market capitalisation exceeding N1tn, marking a significant rise from N283.8bn at the beginning of 2023.
The bank’s shares closed at an impressive N29.90 per share, reflecting a substantial increase in value. UBA’s market capitalisation reached N1,022,562,698,843, making it the third most capitalised financial institution in Nigeria. The surge in market capitalisation is a testament to the bank’s robust financial performance and growing market confidence.
UBA’s exceptional performance extends to its status as the best-performing banking stock in 2023. The share price has experienced remarkable growth, appreciating by over 250% from N7.60 per share at the start of January 2023. This achievement underscores the bank’s resilience, strategic prowess, and the unwavering confidence of investors in its growth trajectory.
Tony Elumelu, Chairman of the UBA Group, highlighted the significance of these milestones, emphasising the bank’s commitment to delivering unparalleled value to shareholders and stakeholders. Elumelu attributed UBA’s success to its business transformation drive, executed with precision over the years, and expressed optimism about the bank’s continuous growth.
“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.
“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 further said.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, praised the bank’s commitment to excellence and execution. He pointed out UBA’s unique competitive advantage in people, processes and technology, pointing to the bank’s strong fundamentals and impressive financial results. Alawuba highlighted the market’s expectations of UBA’s future growth potentials, reflected in favorable price-to-earning and price-to-book multiples.
“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. Its unique competitive advantage lies in people, processes, and technology. With Operations and offices in 24 countries and on 4 continents, UBA is the only African bank with 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 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,” Alawuba said.
The bank’s listing on the Premium Board of the Nigerian Stock Exchange is indicative of its adherence to international best practices on corporate governance. UBA remains dedicated to creating value for its extensive shareholder base, exceeding 275,000 globally.
In addition to its financial accomplishments, UBA emerged as the most profitable bank in Nigeria in 2023, with its Shareholders’ Fund growing from N992bn in full year 2022 to N1.8tn as of September 2023. The bank played a pivotal role as the Local Arranger and Local Depository Bank for the $3.3bn FX Liquidity support facility for Nigeria, addressing challenges related to foreign exchange liquidity.
UBA’s outstanding contributions were further recognised with three prestigious awards at the 2023 FMDQ Gold Awards, including Best FX Liquidity Provider, Dealing Institution of the Year, and Best Money Market Liquidity Provider. These accolades affirm UBA’s capital strength and its significant impact in the financial sector.
United Bank for Africa Plc, a leading Pan-African financial institution, continues to connect people and businesses across Africa and beyond through its diverse banking services and innovative solutions. With a presence in 20 African countries and global hubs like New York, London, Paris and Dubai, UBA remains at the forefront of driving economic growth and financial excellence.