Nigeria: UBA Enters Prestigious ‘Big Caucus’ as Market Cap Surpasses N1 Trillion

The United Bank for Africa (UBA) Plc has achieved a significant milestone by joining the elite group on the Nigerian Exchange (NGX), as its market capitalization soared past the N1 trillion mark. The local exchange continues to ride on positive sentiment, establishing a new all-time high on Monday with notable volume trades.

Data from the Exchange reveals that UBA’s stock market valuation now stands at N1.022 trillion, aligning with industry leaders Zenith and GTCO, both of whom have solidified their positions as category kings in the banking index.

Stockbrokers anticipate further re-rating in the first quarter as the local bourse continues its upward trajectory. Currently, the Nigerian stock market has outpaced its emerging market peers in terms of returns, and the momentum shows no signs of abating.

UBA, previously the smallest in terms of market valuation before surpassing FBNH, witnessed a surge in strong bargain hunting following the Pan African lender’s robust earnings growth in the third quarter of 2023.

Research indicates that UBA stands out among banks with its robust earnings quality, even with a substantial foreign exchange (FX) revaluation gain that significantly boosted its bottom line. This development marks UBA’s entry into the prestigious ‘Big Caucus’ on the NGX as its market cap crosses the N1 trillion threshold.