Shareholders of United Bank for Africa (UBA) have witnessed remarkable growth in their investments, with the bank delivering a 375 per cent capital gain over nearly five years.
Data from the stock market reveals that UBA has maintained an average annual return of approximately 75 per cent from December 31, 2019, to December 6, 2024. This positions the bank as a reliable inflation-hedging stock and a preferred choice for value-seeking investors.
UBA’s share price, which stood at N7.15 at the beginning of 2020, has surged to N33.95 as of the weekend, representing a 35.26 per cent increase from its 2024 opening price of N25.10. This performance translates into substantial returns for investors. For instance, an individual who invested N500,000 in UBA shares at the start of 2020 now holds a portfolio worth over N2.37 million, excluding cash dividends accrued during the period.The pan-African banking group is offering 6.84
UBA is further strengthening its capital base with a N239.4 billion rights issue, offering 6.84 billion new ordinary shares of 50 kobo each to existing shareholders at N35 per share. The offer, based on a ratio of one new share for every five held as of November 5, 2024, is set to close on December 24, 2024.
For the nine months ending September 30, 2024, UBA reported an 83.2 per cent growth in gross earnings to N2.39 trillion, almost double the N1.31 trillion recorded in the same period in 2023. Profit before tax rose to N603.48 billion, compared to N502.09 billion in the previous year, while profit after tax increased from N449.26 billion to N525.31 billion.
UBA’s balance sheet also expanded significantly, growing by 54 per cent to N31.80 trillion by September 2024, up from N20.65 trillion at the end of December 2023. Total deposits increased by 52.7 per cent, reaching N26.50 trillion, representing a 52.7 per cent rise from N17.355 trillion at the end of December 2023, driven by the bank’s technology-led initiatives aimed at enhancing customer experience.
Market analysts attribute UBA’s stellar performance to its strong fundamentals and forward-looking strategies. According to the Managing Director of Arthur Steven Asset Management, Olatunde Amolegbe, the stock’s consistent growth reflects investor confidence in the bank’s ability to deliver future returns. Similarly, Managing Director of HighCap Securities Limited, David Adonri, highlighted that UBA’s share price mirrors its past achievements and promising outlook.
