UBA’s market capitalization crosses N1 trillion
At the close of trading on January 8, 2024, the share price of United Bank for Africa crossed N29.90, taking the bank’s market capitalization to N1.02 trillion, making the bank the latest member of the SWOOT category.
The bank’s stock has been on a bullish run since the start of 2024, as its share price has appreciated by 16.6% from N25.65 at the closing of trading in 2023. Its market cap also appreciated by N142.8 billion within the same timeframe.
UBA’s market performance in 2024 is in line with its 2023 market performance, when it ended as the best-performing bank stock in the NGX, with a 237.5% gain during the year.
Outside the stock market, UBA’s fundamentals have been exceptional, as the bank is projected to be one of the highest profit-earning entities in Nigeria in 2023, pending the release of its FY 2023 report.
During 9M 2023, the company recorded a pre-tax profit of N502.1 billion, representing a 262% year-on-year gain.
Its shareholders’ funds also shored up to N1.778 trillion in September 2023, from N922.1 billion recorded in December 2022.
Speaking on the company’s performance in 9M 2023, the bank’s Group Managing Director, Olivier Alawuba noted,
“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders.”
What you should know
Companies with over N1 trillion market capitalization in the NGX are categorized as SWOOTs (Stocks Worth Over One Trillion).
Current members of the category include MTN Nigeria, Airtel Africa, Dangote Cement, BUA Foods, BUA Cement, GTCO Holdings, Zenith Bank, and Seplat Energy.
On December 6, 2023, FBNH, the parent group of First Bank Limited also crossed the N1 trillion mark, however, it dropped below N1 trillion the next day. Stanbic IBTC also crossed the N1 trillion mark in 2023.
Another stock on the verge of hitting the N1 trillion mark is Geregu Power Plc, which has maintained a market capitalization of N998 billion since November 20, 2023.
