UBA Climbs To N1.89trn On Huge Trading Volume

United Bank for Africa (UBA) Plc maintained an uptrend, which pushed its market value to about N1.89 trillion at the beginning of the week on huge volume transactions.

Equity analysts are projecting significant upside potential for investors who staked a bet on UBA shares ahead of earnings and interim dividends.

With the shift in market conditions and expectation of rate cuts, UBA Plc has continued to keep its kite flying as the group continues to manage drags, gravity, and capitalise on opportunities in the industry.

The banking group has continued to attract investors, attention in the stock market ahead of earnings release, and the expectation of dividend payments.

Data from the Nigerian Exchange showed that UBA tested N46.95 in the equities segment before it pulled back, settling at N46, which represents 5.63% price appreciation on huge volume transacted.

The price drift reflected value hunters’ increased bets as 68.790 million shares of UBA were transacted at a total value of N3.054 billion, with significant deals pulled by the buy-side actors.

The Central Bank of Nigeria (CBN) has raised the bar on industry oversight, recently mandating that deposit money banks fully exit forbearance loans as a condition for future dividend payments.

Analysts expressed the view that the directive underscores the regulator’s commitment to enhancing asset quality and enforcing capital discipline.

In an update, analysts at CardinalStone Securities Limited highlighted that UBA boasts robust capital buffers, which remain resilient even under a 100.0% provisioning scenario.

UBA’s diversified earnings base, particularly from its non-Nigerian operations, is also likely to provide additional cushion, reinforcing the view that it is well positioned to sustain dividend payments even in the financial year 2025, CardinalStone said.

Analysts said that while the CBN policy increases the risk to near-term dividend distributions for some banks, it ultimately supports the evolution of a more resilient and transparent financial system.