Global investors’ confidence rise on UBA Euro Bonds

Due to significant returns on their investment, confidence on the Euro Bond of the United Bank for Africa (UBA), by investors across the globe has continued to grow, stockbrokers at Stanbic IBTC Holdings have said.

Eurobond closed to premium to pair at  $102.7, translating to a notable gain for the bondholders.

In a note to investors signed by Equity Sales executive Stanbic IBTC Holdings

Gbolahan Taiwo, the dealers noted that the strong gain in the equity and debt of the UBA “is an apparent evidence of the global investors’ confidence in the management and overall leadership of UBA Plc.

“More so, it reflects the confidence that investors have in the prospect of the bank particularly its ability to deliver sustainable and superior returns to both equity and debt investors,” the brokers stated.

Recently, the UBA won the Nigeria Stock Exchange (NSE) Pearl Awards for Banking Sector Category. The award is based on qualitative and quantitative metrics which include corporate governance, profitability, sustainability and financial reporting standard/transparency among other key metrics that were used in ranking on the NSE.

On the domestic front, Stanbic IBTC closed the year with the highest stock price in the banking space (absolute terms) at N41.50 per share ahead of Guaranty Trust Bank at N40.75 per share.

According to dealers, “The usual tier 1 banks- Guaranty, Zenith, Access and UBA will be our preferred picks although one can argue that valuations wise, they are more expensive than others and probably for good cause.

“Nonetheless, we still believe some of these stocks still have some way to go. We believe FBNH and ETI will be particular stocks to watch in 2018- largely because both banks have made efforts to clean out their books over the past year and we could begin to see relatively smoother earnings going forward in line with peers.”