By Elizabeth Chukwuma
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.
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.
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.
