UBA Becomes New Trillion-Naira Bank In Nigeria, As Elumelu Makes Over N2bn in Hours

UBA Becomes New Trillion-Naira Bank In Nigeria, As Elumelu Makes Over N2bn in Hours

  • United Bank for Africa has finally joined the exclusive list of Nigerian companies worth over N1 trillion
  • The bank followed up on its good performance from 2023, and its share price has consistently increased in 2024
  • Elumelu benefited from the strong showing of UBA on the floor of the Nigerian exchange on Monday

Legit.ng journalist Dave Ibemere has over a decade of experience covering business and the economy

The United Bank for Africa has set a personal record of becoming the latest member of Nigerian companies with a market value of over N1 trillion just as the Nigerian stock market hit the highest level ever.

Data from the Nigerian exchange showed that at the close of trading on Monday, January 8, 2023, the market capitalisation of UBA touched N1.02 trillion.

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UBA breaks record
Elumelu UBA's hit new height on Nigerian stock market Photo credit: UBA
Source: Getty Images

The market value of UBA increased due to a rise in its share price, which climbed to N29.90 on Monday from its previous closing price of N28.95 on Friday, January 5, 2023.

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UBA joins exclusive list

The latest performance of UBA has helped the bank join the list of Nigerian companies with a market value exceeding N1 trillion.

Companies with over N1 trillion market capitalisation in the NGX are categorised as SWOOTs (Stocks Worth Over One Trillion).

The other Nigerian companies valued at over 1 trillion on NGX include

  • MTN Nigeria
  • Airtel Africa
  • Dangote Cement
  • BUA Foods
  • BUA Cement
  • GTCO Holdings
  • Zenith Bank
  • Seplat Energy

FBN Holdings Plc and Stanbic Bank are other Nigerian banks that recently crossed the N1 trillion market capitalisation threshold.

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Tony Elumelu's worth rises

Tony Elumelu, the board chairman of the UBA, has benefited from the bank's strong performance.

According to checks by Legit.ng, the billionaire businessman has 2.5 billion (2,527,372,285) indirect and indirect UBA shares as of June 30, 2023.

As of Friday, January 5, when the share price was N28.95, the value of Elumelu's investment stood at N73.12 billion.

UBA shares price increased to N29.9 on Monday, June 8. This increase helped Elumelu's investment to N75.49 billion.

This means Elumelu's investment in UBA helped him earn over N2.36 billion after 4 hours(9:30 am to 2 pm) of trading on Monday, January 8, 2023.

Nigerian stock market hit new high

Meanwhile, The Nigerian Exchange all-share index (ASI) has appreciated by 11 percent or 8,269 basis points year‐to-date, placing it second in the world behind Argentina.

According to Bloomberg‘s report, compared with a less than 2% advance for the MSCI Emerging Markets (EMEA) Index over the same period, the NGX rose almost 60% t in the past year.

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Dangote makes over N217bn in 24 hours, jumps past 56 billionaires in world ranking

Banking stocks have driven gains, with the banking index up 16% this year and 138.09% over the past 12 months.

UBA is a reflection of the strong performance of the Nigerian stock market's performance.

Expert speak

Reacting, a stock market expert, Gibert Ayoola explained that many factors, including company performance, market sentiment, economic indicators, and investor behaviour, influence stock prices.

He added that the strong performance will continue.

He said:

"The positive momentum in the market indicates a renewed effort from local investors as they anticipate the market's position in 2024.
"With this renewed enthusiasm, it is expected that the market trend will continue to gain momentum, reflecting the confidence and optimism of investors as they position themselves for the opportunities."

UBA takes over Dubai-based Stallion Group's assets over N156 billion debt

Legit.ng reported that the United Bank for Africa (UBA) has taken over the assets of Stallion Nigeria Limited and its affiliates in Lagos, Port Harcourt, and Kano.

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After buying new bank, access crosses N1trn in market value, sends message on CBN loans

This followed a Federal High Court order in Lagos in an alleged N156 billion debt suit against the company.

A report said the bank's receiver and court bailiffs, accompanied by police officers on Friday, November 10, 2023, executed the orders in three cities.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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