United Bank for Africa (UBA) witnessed a historic rise in its stock value, closing at an unprecedented N35.05 per share on November 5, 2024.
This surge underscores robust investor confidence following the release of the bank’s impressive third-quarter results, which showcased a staggering 101.88 per cent year-on-year increase in pre-tax profit, amounting to N194 billion and bringing the total for the first nine months to N603.483 billion.
The bank’s shares, which were valued at N26.50 before the announcement of its third quarter earnings on October 21, surged to close October at N29.80.
The bullish sentiment continued into November, culminating in a new record high above the N35 mark, contributing to a year-to-date gain of 38.40 per cent.
Financial expert Chijioke Obasi remarked on the growth: “UBA’s current performance exemplifies how strategic cost management and dividend policies can propel investor interest.
“The bank’s commitment to maintaining a competitive edge within a challenging economic environment has clearly paid off.”
A closer look at UBA’s stock movement reveals a journey marked by fluctuations. The bank started the year at N25.65, experiencing a dip to N24.40 by the end of January and further declines in February.
However, March marked a turning point with a 24.16 per cent rebound. This momentum was briefly disrupted in April when news of recapitalization led to a downturn, pushing the share price down to N20.30 by July’s end.
By August, UBA shares began to rally, closing the month above N22 per share amidst robust trading volumes of 510 million shares.
This trend continued through September, with the stock reaching N28.30 and further climbing to over N29 in October, supported by a trading volume of 1.15 billion shares.
Market analysts attribute UBA’s recent gains to several key factors. The mid-year consolidation across the Nigerian banking sector rekindled investor interest, while UBA’s September leadership change and announcement of an interim dividend of N2 per share — the highest among Nigerian banks in 2024 — added further momentum.
Executive Director of Finance & Risk Management at UBA, Ugo Nwaghodoh, highlighted the strategic focus behind the results: “I am delighted at the milestone reached in driving operational efficiency, reflected in the cost-to-income ratio normalising around the 50 per cent range.”
The bank’s third quarter report, reflecting a total pre-tax profit of N603.483 billion over nine months compared to N502.091 billion during the same period in 2023, served as a critical driver for increased market activity.
