UBA Crossed N1.4trn, Rated as Top Pick by Investment firm
UBA Plc’s market value crossed N1.4 trillion in the equities market after the Pan-African lender listed its rights offer on the Nigerian Exchange (NGX).
Details from the equities market revealed that the bank share price rose to N34.45 on Friday as 45.144 million shares valued at N1.535 billion were exchanged. The Nigerian bourse saw the admission of 34.2 billion new ordinary shares from UBA’s Rights Issue, which effectively expanded the market float.
The market priced UBA’s 41,039,305,642 shares outstanding at N1.413 trillion, trading at a discount to its 52-week high—signifying a strong upside potential amidst equity analysts’ latest estimate reviews.
With buy ratings, a slew of equities analysts from major investment banking firms have upgraded UBA’s target price and earnings outlook after impressive Q1 performance. The group’s earnings per share (EPS) improved to ₦5.35, up from ₦3.96 a year earlier, supported by significant top-line growth.
The group profit after tax settled at ₦189.84 billion in Q1 2025, up from ₦142.58 billion in Q1 2024, underscoring improved profitability and effective execution of its strategy across key markets.
Analysts at Cordros Securities Limited reiterated a positive outlook on the Nigerian banking sector, maintaining an overweight rating on Tier-1 banks with N75.29 as the target price for UBA.
“UBA stands out as our top pick, presenting a compelling estimated upside of 68.9%. We particularly like the bank’s earnings profile, supported by its diversified operations across markets.
“UBA generates the highest share of international earnings (51.7%) among Tier-1 peers — a key advantage that offers earnings stability and top-line support. “Looking ahead, we forecast a 5-year CAGR of 15.8% in core income, supported by its broad geographic footprint and balance sheet scale”.
Furthermore, non-interest income is expected to see an average annual growth rate of 16.7%, driven by sustained momentum in fee-based income, underpinned by strong digital capabilities and a solid transaction banking franchise.
Analysts forecast a 430 bps reduction in the cost-to-income ratio to 46.6% in 2025, supported by improved cost management, which should support the bank’s profitability outlook in 2025. #UBA Crossed N1.4trn, Rated as Top Pick by Investment firm#
