…Transcorp, UBA, others magnify shareholders’ wealth with N1.8 trillion market cap gains
PATRICK ATUANYA
Billionaire investor and philanthropist Tony Elumelu’s entities have become top valuable firms in Nigeria, delivering higher returns to shareholders in the form of bumper dividends and share appreciation.
Elumelu has amassed huge stakes in United Bank of Africa (UBA) and conglomerate Transnational Corporation of Nigeria (Transcorp), Transcorp Power and Hotels, Africa Prudential and United Capital, through Heirs Holdings Limited where he is chairman, according to data from the company’s website., making him one of the greatest institutional investors in Nigeria.
It is would be pleasant to note that Tony Elumelu’s Heirs Holdings investment portfolio spans the power, energy, financial services, hospitality, real estate, healthcare and technology sectors, operating in twenty-four countries worldwide and the entity has an unswerving conviction with a spice of “Africapitalism” that the private sector is the key enabler economic and social wealth creation in Africa.
Indeed, Tony Elumelu is creating wealth for the shareholders and investors in Nigeria who have been smiling to the bank. It takes a stroke of genius to turn an array of companies that span different sectors into money spinners and investment edifices for the world to admire.
A breakdown of the N1.8 trillion in market capitalisation shows that United Bank of Africa or UBA, opened 2024 trading on January 2nd at N26 per share but traded at N33.75 on December 20th for a market cap gain of N265 billion so far this year.
Transcorp has gained N339.7 billion in market cap this year, Transcorp Power is up N719.25 billion, Transcorp Hotels is up N469.33 billion, while Africa Prudential is up N20.1 billion.
UBA, Transcorp gradually becoming dividend aristocrats
To fill investors’ coffers, Tony Elemulu’s firms hiked dividend payment, as they are gradually becoming dividend aristocrats.
For instance, Transcorp Plc paid a dividend of N4.06 billion as at December 2023, which represents a 50 percent increase from 2022’s N2.03 billion.
The board of directors of UBA Plc approved a dividend of N2.80k or N95.75 billion, which is 155.01 percent higher than 2022 N1.10k or N37.61 billion.
UBA’s remarkable growth in profitability, asset accretion, separates it from peer rivals
Of all the lenders in Nigeria, UBA is the only one who has recorded improvement in all key financial metrics, as it continues to serve its over 35 million customers on 4 continents, in 24 countries through multiple channels.
Unaudited results for UBA in the third quarter (Q3) ended September 30, 2024, where it recorded strong and impressive growth across all its key indicators, showed the bank’s gross earnings grew significantly by 83.2 per cent to N2.398 trillion up from N1.308 trillion recorded in September last year, while its net Interest income which stood at N443.0 billion at the end of the third quarter in 2023, rose impressively by 149 per cent to N1.103 trillion in the period under consideration.
The bank’s financial report filed with the Nigerian Exchange Limited also indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at N603.48 billion compared to N502.09billion recorded at the end of the third quarter of 2023, while profit after tax also rose remarkably by 16.9 per cent from N449.26 billion recorded a year earlier to N525.31 billion in the period under review.
As in the preceding two quarters this year, UBA continues to maintain a very strong balance sheet, with Total Assets rising to N31.801 trillion, representing a 54.0 per cent increase over the N20.653 trillion recorded at the end of December 2023, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with Total Deposits rising to N26.50 trillion, representing a 52.7 per cent rise, up from N17.355 trillion at the end of the last financial year.
In recognition of its consistent earnings growth and strong balance sheet, Agusto &Co, GCR R Flitch Ratings, and S&P Global Ratings gave the lender a healthy credit profile with current International ratings at par with the Nigerian Sovereign’s.
Tony Elumelu’s UBA launches $6 Billion initiative for African SMEs
To promote Small and Medium Enterprises (SMEs) across the African continent, United Bank of Africa (UBA) has launched a $6 billion financing initiative.
This initiative is designed to provide funding access to SMEs in the Agro-processing, Pharmaceuticals, Automotive, Transport, and Logistics sectors, facilitating their expansion.
The Bank understands that small businesses are the pivotal to job creation and economic growth in a country where over 50 percent live on less than $1.98 a day.
According to the 2023 audited financial statements seen by MoneyCentral, UBA extended credit facilities to the Agriculture sector to the tune of N216.06 billion, which is higher than 2022’s N86 billion.
Some of the firms controlled by Elumelu which are a combination of public and private firms include: UBA, Heirs Insurance (Life, General, HIB), Africa Prudential, United Capital, Transcorp Power, TransAfam Power, Heirs Energies, Transcorp Energy, Transcorp Hotels, Afriland Properties, Transcorp Plc, AVON HMO, Avon Medical Practice, Heirs Technologies and REDTECH.
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