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    Wednesday, May 20
    Analysis

    UBA Climbs to N2.1trn as Investors Bet on Earnings Outlook

    Olu AnisereBy Updated:No Comments2 Mins Read
    UBA Climbs to N2.1trn as Investors Bet on Earnings Outlook
    Oliver Alawuba, GMD, UBA

    UBA Climbs to N2.1trn as Investors Bet on Earnings Outlook

    The United Bank for Africa (UBA) Plc gained more than 9% in the Nigerian stock market as investors stepped up bargain hunting ahead of earnings releases.

    The Pan-African lender saw 9.40% positive price movement in the last seven trading sessions, settling at N48.3 per share on Friday, data obtained from the Nigerian Exchange revealed.

    The banking stock rallied was supported by increased trading activities as Pension Fund Administrators (PFAs) begin to bet on risk assets. Tier-1 lenders saw increased demand, supported by earnings and dividend payments track record.

    UBA beat the industry average in terms of earnings at the end of 9 months of the financial year 2025, according to MarketForces Africa report, and was the only lender that recorded year on year increase in profitability.

    Reflecting investors’ positive sentiment, UBA reached its weekly peak at N48.3 on Friday when 25.381 million units of its shares valued at N1.222 billion were transacted between buy and sell-side actors.

    Analysts are anticipating that the group will sustain its earnings momentum due to a diversified income portfolio, which often neutralizes UBA’s revenue risks across key African markets.

    The group saw improvement in asset quality at the end of 9 months of financial year. UBA’s impairment charge declined, reflecting improved asset quality, recoveries on previously impaired loans, and disciplined credit risk management across its loan portfolio, SAMTL said in its banking report.

    The report said UBA was among the league of few lenders that recorded the largest absolute increases in loans, reflecting their scale, strong corporate banking franchises, and continued participation in oil & gas, manufacturing, and trade finance.

    The bank has already shown potential to beat 2025 earnings growth, based on 9M-2025 earnings scorecard versus its immediate rivals in the sector.

    In 7 days, UBA has gained 9.40%, rising from N44.15 per share to N48.30.  The momentum shifted market value of the Pan-African lender’s 44.196 billion shares outstanding to N2.134 trillion, still tracking below its 52-week high.    Seplat Fires Up, Investors Bet on Tony Elumelu for Capital Gain

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    Olu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development.He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory.Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions.His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set.His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers.Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.

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