At the close of trading on Monday at the Nigerian Exchange Ltd. (NGX), the bank surpassed ₦1.02 trillion in market capitalization, securing its position as 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.
Between January 2023 till date, the price of UBA shares has appreciated by over 250 per cent from ₦7.60 per share.
Tony Elumelu, the Chairman of UBA Group, stated that this achievement coincided with the bank’s shares being recognized as the best-performing stock in the banking sector for 2023, stressing the bank’s strong growth path and enduring market confidence.
“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,” 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 added.
The Group Managing Director/Chief Executive Officer of UBA, Oliver Alawuba, also expressed satisfaction with the bank’s recent performance.
Alawuba said the bank continues to set benchmarks in the banking sector, reinforcing its position as Africa’s global bank of choice.
“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.”
Beyond the stock market, UBA has demonstrated outstanding fundamentals, positioning itself as one of the top profit-earning entities in Nigeria for 2023, subject to the release of its full-year 2023 report.
In the first nine months of 2023, the bank achieved a pre-tax profit of N502.1 billion, reflecting a remarkable 262% year-on-year increase.
Additionally, the shareholders’ funds saw a substantial increase to N1.778 trillion in September 2023, compared to the N922.1 billion recorded in December 2022.
The impressive financial performance underscores UBA’s commitment to sustained growth and its ability to navigate a dynamic economic landscape. The bank’s strategic initiatives, including its business transformation drive, have clearly resonated with investors, leading to a significant uptick in market capitalization and share price.
Tony Elumelu’s emphasis on innovation and value creation echoes throughout the organization, evident in the remarkable surge in market confidence. As the third most capitalized financial institution in Nigeria, UBA is positioned as a formidable player in the country’s banking sector.
The recognition of UBA’s shares as the best-performing in the banking sector for 2023 further solidifies the bank’s reputation for excellence. This accolade reflects not only the impressive stock market performance but also the intrinsic strength of UBA’s operations and its positive impact on shareholders.
Oliver Alawuba’s pride in UBA’s unique competitive advantage highlights the bank’s global reach and diverse capabilities. The expansion into 24 countries across four continents, coupled with a deposit-taking license in the USA, positions UBA as a truly international financial institution.
Looking beyond the financial indicators, UBA’s commitment to sustainability and innovation is evident in its positive impact on diverse communities across Africa. The bank’s promise to stakeholders to continue working harder and delivering value signifies a dedication to long-term success and positive contributions to the regions it serves.
The anticipation of UBA’s full-year 2023 report adds to the growing excitement surrounding the bank’s achievements. The substantial year-on-year increase in pre-tax profit and shareholders’ funds further reinforces UBA’s financial robustness and strategic acumen.
In conclusion, UBA’s journey to surpassing the ₦1 trillion market capitalization mark is a testament to the bank’s resilience, strategic vision, and commitment to excellence. The positive trajectory in financial performance, coupled with recognition in the stock market, solidifies UBA’s position as a key player in the Nigerian and international banking landscape. As the bank continues to navigate challenges and capitalize on opportunities, stakeholders can look forward to sustained growth and value creation under the leadership of Tony Elumelu and the UBA team.
Source: Business Insider