The Group Managing Director of United Bank for Africa (UBA) Oliver Alawuba, says N100 a share is possible for the bank stock, as the lender celebrates its 75th anniversary.
“UBA operates across 24 countries with opportunities to connect Africa to the world. The market is repricing UBA with significant market value growth over the past year. Cross border diversification is good for earnings growth in spite of one time FX windfall,” Alawuba said.
“We will continue to see significant valuations growth.”
UBA currently trades at N21 and a price to book value 0.28 times. This means a valuation closer to book value will see the shares trading closer to N80.
UBA commenced operations in 1949 at Kakawa Street and was known then as British/French Bank.
UBA milestones over past 75 years
With innovation and commitment to excellence that defined UBA since inception it has since evolved from its modest beginnings to expand to 20 African countries and global nerve centres such as New York, London, Dubai and Shanghai with 25,000 staff and over 35million customers.
All its subsidiaries are profitable, responsible for more than 50% of profit.
UBA was the first bank to offer an IPO in Nigeria in1970. First to be listed on NSE and only bank in Sub Sahara Africa with a deposit taking license in the USA. The year 2023 was one with big FX move as the bank balance sheet saw significant accretion which was largely one-off.
It was the first Bank in Nigeria to install an ATM. First to open a campus branch first to open a subsidiary in Africa, and first bank to have female Chairperson in Nigeria.
Mobile Banking was first introduced by UBA in Nigeria, it also deployed the first chatbot in the country. Some 33% of CEOs in UBA’s 20 African countries of operation are also women.
Innovation key to future growth for UBA
UBA has demonstrated financial strength a testament to robust fundamentals and is committed to creating value for stakeholders. The bank is positioned as the payment bank for capital flows between Africa and the rest of the world.
It recently signed agreement with the African Continental Free Trade Area Afcfta where UBA is putting out $6bn.
“As we embark on the next phase of our journey we urge all stakeholders to ride with us and write the next chapter of success with us.”
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