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Tag: Capitalisation

  • UBA surpasses N1trn market capitalisation mark

    UBA surpasses N1trn market capitalisation mark

    Africa’s Global Bank, United Bank for Africa (UBA) Plc, has joined the group of companies with market capitalisation of over N1 trillion, as its share price value hits N29.90 per share.

    At the close of trading of the Nigerian Exchange Ltd. (NGX) on Monday, the bank’s market capitalisation crossed N1.02 trillion, making it the third most capitalised financial institution in Nigeria.

    This indicated a remarkable lift from N283.8 billion recorded by the bank at the beginning of the 2023, with 34.19 billion shares in issue.

    The Chairman, UBA Group, Mr Tony Elumelu, in a statement in Lagos, said that the feat came amidst the bank’s shares being named as the highest performing stock in the banking sector in 2023.

    Elumelu stated that this underscored the bank’s robust growth trajectory and unwavering market confidence.

    Specifically, between January 2023 till date, the price of UBA shares has appreciated by over 250 per cent from N7.60 per share.

    The chairman explained that the bank’s remarkable journey in 2023 culminated with its shares being acclaimed as the highest performing stock within the banking sector.

    He highlighted that this not only indicated the bank’s strategic prowess but also reflected its commitment to delivering unparalleled value to shareholders and stakeholders alike.

    “As UBA celebrates these significant milestones, we will like all our stakeholders to know that we remain steadfast in our mission to drive sustainable growth, foster innovation, and create value for our diverse clientele across Africa.

    “We are witnessing the impact of the business transformation drive UBA embarked on years ago and executed well.

    “Naturally, the market has taken note of and is duly rewarding our efforts.

    “To our stakeholders, our promise is that we will continue to work harder, deliver on what we know how to do well, and create impacts across geographies where we currently operate,” he said.

    UBA’s Group Managing Director/Chief Executive Officer, Mr Oliver Alawuba, expressed delight at the bank’s performance in the past few months,

    Alawuba said, with the bank’s unwavering commitment to excellence and execution, it continues to set benchmarks in the banking sector, reinforcing its position as Africa’s global bank of choice.

    He said: “Market participants have begun to appreciate the latent capacity in UBA’s business model as the bank unlocks enormous potentials in its pan African and international operations.

    “Its unique competitive advantage lies in people, processes, and technology.

    “With operations and offices in 24 countries and on four continents, UBA is the only African bank with a deposit-taking license in the USA.

    According to him, the bank’s fundamentals remain strong with impressive financial results that have continued to deliver sustainable value for its shareholders.

    The managing director noted that at current price, UBA trades at price-to-earning (P/E) and price-to-book (P/B) multiples of 2.27 and 0.59, which are a reflection of the market’s expectations of the bank’s future growth potentials.

    He stated that the bank is listed on the Premium Board of the Nigerian Stock Exchange in recognition of its strong adherence to international best practices on corporate governance.

    Alawuba noted that UBA remains committed to creating value for its over 275,000 esteemed shareholders spread across the globe.

    “The outgone year, 2023, has been a splendid year for UBA, becoming the most profitable bank in Nigeria in 2023, with a Shareholders’ Fund that has grown from N992 billion as at full year 2022 to N1.8 trillion as of September 2023.

    “UBA was also appointed as the Local Arranger and Local Depository Bank for the $3.3 billion FX Liquidity support facility for Nigeria in partnership with Africa Export and Import Bank (Afreximbank).

    “Providing solutions to economic solutions in Nigeria characterised by shortage of FX liquidity.

    “Likewise, in 2023, UBA won the 2023 FMDQ Gold Awards in three categories, including the Best FX Liquidity Provider, Dealing Institution of the Year, and Best Money Market Liquidity Provider,”he said.

    According to him, this recognition is a testament to UBA’s impressive capital strength.

    United Bank for Africa Plc is a  Pan-African financial institution offering banking services to more than 25 million customers, across 1,000 business offices and customer touch points in 20 African countries.

  • NAICOM bows to pressure, cancels insurance industry’s recapitalisation ‘with immediate effect’

    The National Insurance Commission (NAICOM) on Friday cancelled the Tier Based Solvency Capital recapitalisation of the underwriting sector with immediate effect.

    The commission gave this notice in a circular to all insurance companies on ‘Withdrawal of circular on Tier Based Solvency Capital policy for insurance companies in Nigeria’, which was signed by the Director, NAICOM, Mr Agboola Pius, on Friday.

    It stated, “Pursuant to the powers conferred by the enabling laws, the commission hereby withdraws and cancels the circular dated August 27, 2018 and titled Tier Based Solvency Capital Policy for insurance companies in Nigeria. This withdrawal and cancellation takes immediate effect.”

    It will be recalled that some few months back, NAICOM announced a raise in the minimum capital base for life, non-life and composite insurance companies seeking to get licences to underwrite all risks in the country from N2bn, N3bn and N5bn to N6bn, N9bn and N15bn, respectively under its tier-based minimum solvency capital structure.

    It later announced an October 1, 2018 deadline, which was not accepted by stakeholders, pushing them to take a legal action against the commission.

    Some shareholders of insurance companies had sued the commission to a Federal High Court in Lagos for insisting on implementing the recapitalisation.

    Justice Muslim Hassan gave an order in a class action brought by the shareholders restraining NAICOM from enforcing the TBMSC policy.

    This led the commission to suspend the implementation of its recapitalisation in October.

    In compliance with the extant rules and injunction issued by the Federal High Court, the commission had said status quo would be maintained and insurers were asked to continue to operate on the subsisting regulatory framework prior to the circular.

    It stated that appropriate regulatory directive would be given upon the completion of the suit.

    But through this latest circular, the regulator cancelled the recapitalisation which had generated a lot of controversies.

     

  • NSE market capitalisation loses N416bn in five days

    NSE market capitalisation loses N416bn in five days

    The market capitalisation of the Nigerian Stock Exchange lost N416 billion in five trading days due to exit of foreign investors following delay in 2018 budget passage.

    Market statistics obtained by the News Agency of Nigeria showed that the market capitalisation which opened trading on May 21 at N14.660 trillion shed N416 billion or 2.84 per cent to close trading on May 25 at N14.244 trillion.

    Similarly, the All-Share Index within the period dipped 1,148.83 or 2.84 per cent to close trading on 39,323.62 compared with 40,472.45 it opened for the week.

    Commenting on the persistent market lull, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun attributed the development, in an interview with the NAN to uncertainties in the economy which affected foreign investors confidence.

    Tella said the negative trend in the stock market in the last two weeks arose from the lack of money in the economy.

    He said that investors were taking profits to get cash for spending which led to selling pressure.

    Tella said that delay in the passage of the budget affected foreign investors’ confidence in the nation’s economy.

    He explained that the delay witnessed in the passage of the budget affected government spending, noting that our economy was public-sector driven.

    “So, when government starts spending on infrastructure, communication, and other sectors that will impact on production, foreign investments in both direct and portfolio will start returning,” Tella said.

    According to him, things will change as soon as the budget is fully approved for implementation and confidence returns to the economy.

    The economist said that the fluctuation would likely continue in the next four to five weeks.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , said that foreign portfolio investors that positioned the market in mid 2017 were exiting their positions ahead of the upcoming general elections.

    Omordion said that they were running for safety as the political risk surrounding the coming 2019 elections were already playing out.

    He called on investors to invest for long-term or go for stocks with good fundamentals to minimise loss

    Mr Sola Oni, Stockbroker and the Chief Executive Officer, Sofunix Investment and Communications said that Nigeria still remained a good investment destination for any investor regardless of any challenge.

    Oni said that investors must appreciate the fact that the stock market moves in a circle all over the world.

    He said that investors were at liberty to realise profit anytime the market was upswing, adding that, profit taking leads to bearish trend.