UBA Hits N1trn after Q3 Earnings, New Dividend Trend
Market, equities investors have placed higher value on United Bank for Africa (UBA) Plc on the Nigerian Exchange (NGX) trading platform after third quarter earnings release and its new dividend payment trend.
The Pan African lender share price reached N30.1 on Friday in the equities market from N25.4 at the beginning of the week as investors increased bets on the banking group. Data from the Nigerian bourse showed that UBA gained 18.5% week on week to settle at N1.029 trillion, now ranked at third most valuable banking stocks on NGX.
The group bucked the dividend payment trend in the banking sector in the first half of 2024, paying 100% above its peers in the market. The financial services group’s board of directors declared N2 per share as an interim dividend, a total deviation from what other Tier-1 banks offered their shareholders.
UBA has practically changed its dividend payment policy and set new standards for other listed banks, Broadstreet analysts said in a chat with MarketForces Africa. “Paying N1 on banking stock worth N30 could end from here….Earnings and dividend growth have to be balanced.”
In its nine months of financial year 2024 earnings results, UBA posted 17% year-on-year growth in profitability. Details from the financial statement showed the group profit after tax settled at N525.313 billion at the end of the nine-month period in the 2024 financial year, from N44.296 billion.
Investors sentiment improved as UBA paid interim dividend to shareholders and release its earnings scorecard the same week.
The Pan African financial services group has told investors that an interim dividend of N2 would be paid electronically to shareholders whose names appear on the Register of Members as of the close of business on Monday, October 14, 2024. #UBA Hits N1trn after Q3 Earnings, New Dividend Trend Naira Drops Market Wide, Exchange Rates Gap Now N102
