The Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA), Mr. Oliver Alawuba, has revealed that since its inception in 1949, the bank has evolved from a modest beginning in Lagos Island to a global financial institution with a presence in 20 African countries and four global financial nerve centres (New York, London, Paris and Dubai).
He also said the lender has over 25,000 staff, over 35 million customers that are being served through multiple channels – over 350,000 Point of Sales (POS) terminals, 2,000 ATM terminals, 1,000 Business Offices and 19.7 million Card Customers.
Speaking at the world press conference celebrating the bank’s 75th anniversary held at its headquarters in Lagos on Monday, Alawuba stated that the United Bank for Africa’s share price can hit the N100 per share mark.
United Bank for Africa is one of Nigeria’s oldest banks and the first to list on the NGX in 1978.
According to Alawuba, UBA represents the quintessential bank that investors are seeking.
Over the past two years, our dividend yield has consistently exceeded 12 percent. UBA’s presence across 24 countries not only underscores our robust diversification of income streams but also highlights the unique investment proposition we offer.
“When you invest in UBA shares, you are essentially gaining exposure to the economic potential of 24 different markets. Therefore, it’s crucial for us to communicate to Nigerian investors that UBA’s current share price is undervalued, presenting a substantial opportunity for those looking to invest in a bank with a truly global footprint said Alawuba
During the question and answer session, Alawuba was also asked if he could commit to achieving a share price target of N100 per share during his tenure at UBA.
In response, he confidently stated, “N100 is possible; here at UBA, we push the frontiers.”
He expressed appreciation to the Group Chairman, Mr. Tony Elumelu, who he said deserves to be honoured because Elumelu built and nurtured the platform on which “we are standing today. Without his visionary push in 2005 and tutelage over the years, I doubt whether we would be where we are today. For these and more, we say a ‘BIG AND RESOUNDING THANK YOU’ to him.”
He further recognised the bank’s customers all over the globe, saying that their consistent support and patronage over the years have been amazing.
“You meet several people, they will tell you that they are third or fourth generation of UBA customers in their families, that their grandparents and parents were customers of UBA and their children currently carry UBA ATM cards, enrolled on our mobile banking and LEO chat bot banking. This is the strength of UBA.
“This milestone is not just a celebration of longevity, but a testament to resilience, innovation, and unwavering commitment to excellence that have defined UBA’s journey over the decades,” Alawuba stated.
The past 75 years, he added, have been marked by stability and excellence, pillars upon which UBA’s legacy stands tall.
The Chief Financial Officer of the bank, Ugochukwu Nwagodoh, also refered to the 237 percent growth in the bank’s share price over the last year.
He pointed to the revenue streams from the bank’s subsidiaries outside Nigeria as a sign of the bank’s potential for share price appreciation.
“The market has recognized significant value in the share price and that is why the share price has recorded about 237 percent growth over the last year. UBA’s diversified business in itself is a significant value and the reason is that even though there is a problem in one economy, you have revenue streams still coming in from other countries. “And so, the diversification provides that robustness in your earnings streams and this is what investors are able to recognize and factor into the valuation of UBA, “Ugochukwu Nwagodoh stated.
UBA Plc’s share price was flat for almost a decade until the recent surge in 2023. Between 2019 and 2022, UBA’s share price averaged around N5 per share, despite profitability growth and declaring dividends.
Despite the current share price of N21, the bank still trades at less than 50 percent of book value and 1x its price-to-earnings multiples.
Regarding the possible external listing of UBA in other capital markets outside Nigeria, Nwagodoh stated that the bank is continuously exploring ways to reach out to the investor community, reviewing options and giving them consideration.
Concerning the need for the bank to improve its capital importation numbers, it was stated that UBA is working on improving this aspect of their business.
UBA Nigeria Plc, one of Nigeria’s oldest and largest banks, reported its audited accounts for 2023, revealing gross earnings of N2 trillion, a significant increase from N835 billion just a year earlier.
This achievement marks the bank’s highest gross earnings on record and ranks as one of the highest in the banking sector for 2023.
Following the top-line performance, the bank announced a profit after tax of N607.696 billion in 2023, which represents a 257 percent surge from N170.277 billion in 2022.
UBA released its unaudited financial results for Q1 2024 showing pre-tax profit grew by 154.74 percent year-on-year to N156.344 billion.
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