Home Banking / Finance UBA Capitalization Hits Over One Trillion Mark, Making It One Of Nigeria’s Solid Banks

UBA Capitalization Hits Over One Trillion Mark, Making It One Of Nigeria’s Solid Banks

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It is no  no longer news that the United for Africa, UBA, plc, a Pan African Bank, with a shares capital issue of  over 34 million  ad described as  the highest  performing stock  in the nation’s banking sector as at 2023,  is the most financially solid bank in the African Continent.

Cablenews24 reports that the bank’s growth trajectory  and unwavering  market confidence  may have informed  why the price  of the its shares  has continuously appreciated  over the year by  over  250% from N7.60 per share in the Nigerian Stock Exchange Market.

Many believe that Tony Elumelu, a Philanthropist and multibillionaire business mogul, who incidentally is the Chairman of the Bank remarkable journey in 2023, was said to have culminated with the Bank’s shares  being acclaimed  as the highest performing  stock  within the sector , which  to its  insiders said reflects its commitment  ‘’to unwavering  unparalleled value  to shareholders and other stakeholders.

It was ot surprising why the Bank has joined the elite group of companies with market capitalization of of over N1 trn as its share price hits N29.90 per share.  This impressive financials and recognition at the NSE, may have given Elumelu, the Bank Chairman and other members of the Board of Directors and the Management TeaM a cause to celebrate the market capitalization.

TElumelu: Innovative Chairman of UBA plc

An enthusiastic Elumelu and founder of Tony Elumelu Foundation, the leading champion  of entrepreneurship in Africa,’’ catalyzing  economic growth, driving poverty eradication  and ensuring job creation’’,  had said that the Bank’s over one trillion capitalization  has made it  the third  most capitalized Bank in Nigerian , which financial analysts see as a remarkable lift  from the N283.8billion  at the beginning  of the  last 2023 fiscal year.

Elumelu the Pan African Bank Chairman who could not hide his feelings had said that the Bank Board of Directors and the Management Team celebrates these significant milestones to make the shareholders and other stakeholders  to know that  ‘’we remain  steadfast  and committed to  our  mission to drive  sustainable growth, foster innovation  and create value  for its diverse  clientele’’ across  the African Continent, Europe, United Kingdom, UK and the North American country of the United States including the Middle East.

Given an insider information, he noted that the Bank is only witnessing   the impact of ‘’the business transformation drive   the Bank had embarked over the years and executed well’’. According to him,   the market may have taken   note of all that bold business transformation moves and duly regarding the Bank’s efforts to excel among its competitors.

Given his words to the Bank’s stakeholders, he was said to have assured that the Board and the Management Team , under Oliver Alawuba, the Group Managing Director, GMD , will continue  ‘’to work harder  to deliver  on its mandate that they know how to do well and create impacts  across  geographies where the Bank cureently operates.

Alawuba, the GMD, of the UBA plc, may have foot step of the Chairman,  to express delight  at the Pan African Bank’s superlative performance  in the past few months   ,’’ restating  its unwavering commitment  to excellence  and execution  of projects that would put the Bank in a class of its own in the African Continent.

He averred that the Bank would continue’’ to set benchmarks in the nation’s Banking sector by enforcing its position as Africa’s global Bank of choice’’. Given the impressive performance of the Pan African Bank in nthe 2023, fiscal  year, may have given market participants  room   ‘’to appreciate  the latent capacity  in the Bank business model  as it unlocks  enormous  potentials  its African countries and   International operations.

Financial analysts believe that the Bank unique competitive advantage lies in the people, processes and tehnology. Note that with its operations in 24 countries in the African Continent and on four other Continents, the Nigerian home grown Financial Institution appears to have become the only African Bank  with deposit –taking license  in the US.

Atop official of the Bank who spoke to The Value News corroborated the GMD claims that ‘’the Pan African Bank fundamentals    remain strong with impressive financial results that have continued to deliver sustainable value for its shareholders.

It was gathered that at  current price  at the NSE,  the Bank stock trades   at price- to- earnings, P/E and  of the market price –to-book ,P/B,  multiples of  2.27 and 0.59, which many had described as a reflection  of the market expectations  of the Bank’s  future  growth potentials.

At present, the Nigerian Bank is listed on the Premium Board of the NSE’’ in recognition of its strong adheren to international best practices on Corporate governance and committed to creating value  for its over 275,000 shareholders  world-wide.

The Bank has demonstrated that it can deliver on its mandate of offering services  to more than  25 million Customers  across  1,000 business  offices and Customer  touch points  in 20 African countries , alone. With presence in  in NewYork,  London, Paris,  and Dubai, the Nigerian Bank appears to be connecting  people  and businesses  across Africa  through retail, commercial  and Corporate Banking , innovative cross-border payments  and remittances ,, trade finance  and ancillary Banking services.

Although the year 2023, has come and gone,  it was said to be a splendid year  for UBA as it became the most profitable  Financial Institution  in Nigeria  , with a shareholders’ fund  that has said to have grown   from NN992 billion in 2022   to N1,8 trn. As at September 2023.

Perhaps, this may have informed why the Bank  has been appointed as  the Local Arranger   and Local Depository  Bank for  the $3.3 billion  foreign exchange  Liquidity support   facility for Nigeria  in partnership with  Africa Export and  Import Bank , Afrexim Bank , providing solutions  to economic  problems  in Nigeria characterised  by shortage of forex liquidity.

Recall that in 2023, UBA,   won the MDQ Gold Awards in three categories   including Best   forex liquidity proider, Dealing Institution of the year and Best Money, Market Liquidity Provider. Alawuba, the GMD, of the Bank,  had said that  the various awards bestowed on it in the 2023 fiscal year was in recognition of’’ the Bank’s impressive  capital strength’’. Vintage  UBA plc.

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