UBA Seeks Approval For Rights Issue Following Q3 Profit Surge

United Bank for Africa (UBA) has applied to the Nigerian Exchange (NGX) for approval to list a rights issue of 6.8 billion ordinary shares at ₦35.00 each.

This follows a strong quarter three (Q3) 2024 financial performance, with UBA reporting a remarkable 101.88 percent increase in pre-tax profit to ₦194 billion and a nine-month total profit of ₦603.4 billion.

In a recent statement, Mr. Godstime Iwenekhai, Head of the Issuer Regulation Department, confirmed that UBA’s application, submitted via United Capital Securities Limited, is currently under review by NGX.

UBA’s Q3 results show substantial gains in revenue and profitability, with interest income making up 77 percent of gross earnings. However, interest income from loans and advances fell by 19 percent in Q3, accounting for 40.4 percent of the total for the quarter and 37 percent for the first nine months. Meanwhile, income from investments in securities grew, contributing 35 percent in Q3 and 42 percent over the nine-month period, supported by strong first-half returns.

Stock performance has been mixed in 2024, reflecting both economic pressures and investor sentiment. UBA’s stock started the year at ₦25.65, briefly declined, then rebounded with a 24.16 percent gain in March. In Q2, recapitalisation efforts had tempered growth, with shares closing at ₦20.30 in July. However, August saw a recovery, closing above ₦22 on 510 million shares traded.

With this rights issue, UBA aims to capitalise on its improved financial standing, positioning itself for further growth amid a competitive banking sector.