The United Bank for Africa crossed the N1 trillion mark in market capitalisation at the close of trading on the Nigerian Exchange Limited on Monday.
UBA’s market cap stood at N1.022tn from N990bn on Friday, signalling a N32bn gain in one day, thus emerging the third most-capitalised bank in Nigeria, behind Zenith Bank and Guaranty Trust Holding Company Plc.
The shares of the financial institution were named as the highest-performing stock in the banking sector in 2023, which underscores the bank’s growth trajectory.
Between January 2023 and Monday, the price of UBA shares has appreciated by over 250 per cent from N7.60 per share to N29.90 per unit.
In a statement issued on Monday, the Chairman, UBA Group, Tony Elumelu, said that the bank’s remarkable journey in 2023 highlighted the bank’s strategic prowess and reflects its commitment to delivering unparalleled value to shareholders and stakeholders alike.
He said, “As UBA celebrates these significant milestones, we would 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. 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, we promise 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.”
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressing delight at the bank’s performance in the past few months said, “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 four 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 its current price, UBA trades at price-to-earning and price-to-book multiples of 2.27 and 0.59 which are a reflection of the market’s expectations of the Bank’s future growth potentials.”
In 2023, UBA’s Shareholders’ Fund grew from N992bn as of December 2022 to N1.8trn as of September 2023. UBA was also appointed as the Local Arranger and Local Depository Bank for the $3.3bn FX Liquidity support facility for Nigeria in partnership with the African Export and Import Bank.