Shareholders of the United Bank for Africa (UBA) have seen impressive returns, with a cumulative capital gain of 375% over nearly five years. Data from the Nigerian stock market reveals that UBA has provided an average annual return of approximately 75% between December 2019 and December 2024, positioning the bank as a high-yielding, inflation-hedging stock. The bank’s share price increased significantly from N7.15 per share in 2020 to N33.95 by December 2024, reflecting a 35.26% increase in 2024 alone.
An investor who purchased N500,000 worth of UBA shares at the start of 2020 would now have a market value of over N2.374 million, excluding dividends. The bank’s strong performance is further underscored by its ongoing rights issue, offering 6.84 billion ordinary shares to existing shareholders at N35 per share, aimed at raising N239.4 billion. The rights issue is expected to close on December 24, 2024, presenting an opportunity for shareholders to increase their holdings.
In addition to the share price surge, UBA’s financial performance for 2024 shows significant growth, with gross earnings rising 83.2% to N2.39 trillion and a 54% increase in the bank’s balance sheet size. The rise in profits, bolstered by technology-led initiatives, has contributed to substantial increases in customer deposits and overall market confidence in the bank. UBA continues to demonstrate robust financial health and growth prospects in the coming years.