United Bank for Africa Plc, (NGX: UBA) on Monday joined the group of companies listed on the Nigerian Exchange with more than N1 million market capitalization as the share price rose 3.28% to close at N29.90 per share.
The bank’s market capitalization now stands at ₦1.02 trillion, making it the third most capitalized financial institution in Nigeria after GTCO Holdings and Zenith Bank.
This marks a remarkable increase from the ₦283.8 billion recorded by the bank at the beginning of 2023, with 34.19 billion shares in issue as it has gained over 250% between January 2023 till date.
This N1 trillion mark achievement coincided with the bank’s shares being recognized as the best-performing stock in the banking sector for 2023.
Tony Elumelu, the Chairman of UBA Group, stated that this achievement stressing the bank’s strong growth path and enduring market confidence.
Elumelu said, “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.
The Group Managing Director/Chief Executive Officer of UBA, Oliver Alawuba, also expressed satisfaction with the bank’s recent performance.
Alawuba said the bank’s continues to set benchmarks in the banking sector, reinforcing its position as Africa’s global bank of choice.
He 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 a deposit-taking license in the USA.”
In the nine months ended September 30, 2023, UBA reported a profit of N449.30 billion for the nine months ended 30th September 2023.
A review of the financial statements showed that UBA grew its gross earnings by 115.2% to N1.31 trillion from N608.29 billion recorded in nine months in 2022 while the profit after tax increased by 287.2% to N449.30 billion from N116.04 billion in the same period in 2022. The earnings per share soared to N12.93 from N3.27
During the period, UBA reported “Net trading and foreign exchange income” of N450.25 billion out of which N339.96 billion was recorded as “Net Fair value gain on derivatives,” compared to a N22.61 billion in the nine months 2022.
The total assets rose to N16.24 trillion, compared to N10.86 trillion as at 31st December 2022. Of these assets, over N5.95 trillion is investment in securities, N4.94 trillion is loans and advances to customers, while N4.04 trillion is cash and bank balances.
Whereas total Liabilities increased N14.46 trillion, compared to N9.935 trillion as at 31st December 2022. Deposits from customers accounted for most of the liabilities with N11.63 trillion.
Shareholders’ fund stood at N1.72 billion, compared to N887.30 billion as at 31st December 2022.
During the year, UBA was 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 challenges in Nigeria characterised by shortage of FX liquidity.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
