UBA Overtakes Dangote Cement to Become Most Profitable Listed Company 

In the first six months of 2023 alone, United Bank for Africa (UBA) Plc generated a net income of N378.23 billion, making it the most profitable listed company on the Nigerian Exchange (NGX).

That compares to Zenith Bank’s profit of N291.76 billion; Guaranty Trust Holdings Company (GTCO), (N280.48 billion); First Bank Holdings Nigeria, (N187.17 billion); Dangote Cement, (N178.60 billion); BUA Foods, (N95.19 billion0), and BUA Cement (N63.13 billion).

Investors have been responding positively to the lender’s stellar performance as its shares have gained 116.45 percent so far this year, outperforming the NGXASI’s gains of 31.01 percent.

The pan-African lender has an attractive valuation, an ideal entry point for investors who wish to bolster their portfolio as it has a price to earnings ratio of 1.19 while it pays a dividend yield of 8.64 percent.

UBA has growing operations in 20 African countries, the UK, USA, with a Rep office in France. The lender has commenced full operation in the UAE with a 73-year history, making it one of the strongest and most recognised banking brands to originate from Sub-Sahara Africa.

Highlights of key financial metrics

The results also showed as of June 30, 2023, a profit after tax (PAT) of N378.24 billion, representing a leap of 437.8 percent over H1 2022.

Operating Income grew by 206.6 per cent to N783.96 billion in June 2023; higher than N255.67 billion reported a year earlier.

The Group delivered a 164 per cent growth in its Gross Earnings which rose to N981.78 billion as at June 2023, up from N372.36 billion recorded last year in June 2022.

Total Assets continued a strong upward trajectory, rising above the N15trn mark, as it hits N15.38 trillion, representing a 41.7 per cent leap up from N10.86 trillion recorded at the end of last year.

Customer Deposits also rose by a sharp 42.4 per cent to N11.14 trillion in the period under consideration; as against N7.8 trillion recorded at the end of 2022.

Shareholders’ Funds increased to N1.712 trillion reflecting the Group’s strong capacity for internal capital generation.