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UBA

United Bank for AfricaNGSE:UBA Stock Report

Market Cap

₦287.3b

7D

1.2%

1Y

16.7%

Updated

25 Oct, 2021

Data

Company Financials +
UBA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
Dividends4/6

UBA Overview

United Bank for Africa Plc, together with its subsidiaries, primarily provides corporate, commercial, and retail banking services in Nigeria, rest of Africa, and internationally.

United Bank for Africa Competitors

Zenith Bank

NGSE:ZENITHBANK

₦784.9b

Guaranty Trust Holding

NGSE:GTCO

₦624.0b

FBN Holdings

NGSE:FBNH

₦439.7b

Access Bank

NGSE:ACCESS

₦331.0b

Price History & Performance

Summary of all time highs, changes and price drops for United Bank for Africa
Historical stock prices
Current Share Price₦8.40
52 Week High₦6.75
52 Week Low₦9.80
Beta0.87
1 Month Change12.00%
3 Month Change7.69%
1 Year Change16.67%
3 Year Change3.70%
5 Year Change97.65%
Change since IPO779.84%

Recent News & Updates

Shareholder Returns

UBANG BanksNG Market
7D1.2%-0.7%0.7%
1Y16.7%21.5%40.9%

Return vs Industry: UBA underperformed the NG Banks industry which returned 21.5% over the past year.

Return vs Market: UBA underperformed the NG Market which returned 40.9% over the past year.

Price Volatility

Is UBA's price volatile compared to industry and market?
UBA volatility
UBA Beta0.87
Industry Beta0.87
Market Beta1

Stable Share Price: UBA is less volatile than 75% of NG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: UBA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194810,531Kennedy Uzokahttps://www.ubagroup.com

United Bank for Africa Plc, together with its subsidiaries, primarily provides corporate, commercial, and retail banking services in Nigeria, rest of Africa, and internationally. The company operates through Corporate Banking, Retail/Commercial Banking, and Treasury and Financial Markets segments. It offers current, savings, salary, fixed deposit, and domiciliary accounts; asset, entrepreneur, and creative industry finance; personal, auto, and school loans; debit and prepaid cards; and trade and treasury products.

United Bank for Africa Fundamentals Summary

How do United Bank for Africa's earnings and revenue compare to its market cap?
UBA fundamental statistics
Market Cap₦287.28b
Earnings (TTM)₦124.56b
Revenue (TTM)₦399.88b

2.3x

P/E Ratio

0.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UBA income statement (TTM)
Revenue₦399.88b
Cost of Revenue₦0
Gross Profit₦399.88b
Expenses₦275.32b
Earnings₦124.56b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.64
Gross Margin100.00%
Net Profit Margin31.15%
Debt/Equity Ratio75.1%

How did UBA perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

15%

Payout Ratio

Valuation

Is United Bank for Africa undervalued compared to its fair value and its price relative to the market?

2.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UBA (NGN8.4) is trading above our estimate of fair value (NGN7.7)

Significantly Below Fair Value: UBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UBA is good value based on its PE Ratio (2.3x) compared to the NG Banks industry average (3.8x).

PE vs Market: UBA is good value based on its PE Ratio (2.3x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: UBA is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: UBA's PB Ratio (0.4x) is in line with the NG Banks industry average.


Future Growth

How is United Bank for Africa forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBA's forecast earnings growth (19.1% per year) is above the savings rate (13.2%).

Earnings vs Market: UBA's earnings (19.1% per year) are forecast to grow faster than the NG market (15.4% per year).

High Growth Earnings: UBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: UBA's revenue (15.2% per year) is forecast to grow faster than the NG market (10.4% per year).

High Growth Revenue: UBA's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBA's Return on Equity is forecast to be low in 3 years time (19%).


Past Performance

How has United Bank for Africa performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBA has high quality earnings.

Growing Profit Margin: UBA's current net profit margins (31.2%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: UBA's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: UBA's earnings growth over the past year (69.6%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: UBA earnings growth over the past year (69.6%) exceeded the Banks industry 10.5%.


Return on Equity

High ROE: UBA's Return on Equity (17.3%) is considered low.


Financial Health

How is United Bank for Africa's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: UBA's Assets to Equity ratio (11x) is moderate.

Allowance for Bad Loans: UBA has a low allowance for bad loans (95%).

Low Risk Liabilities: 88% of UBA's liabilities are made up of primarily low risk sources of funding.

Loan Level: UBA has an appropriate level of Loans to Assets ratio (34%).

Low Risk Deposits: UBA's Loans to Deposits ratio (42%) is appropriate.

Level of Bad Loans: UBA has a high level of bad loans (3.5%).


Dividend

What is United Bank for Africa current dividend yield, its reliability and sustainability?

6.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UBA's dividend (6.55%) is higher than the bottom 25% of dividend payers in the NG market (3.33%).

High Dividend: UBA's dividend (6.55%) is low compared to the top 25% of dividend payers in the NG market (7.34%).


Stability and Growth of Payments

Stable Dividend: UBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: UBA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.1%), UBA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UBA's dividends in 3 years are forecast to be well covered by earnings (22.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Kennedy Uzoka (55 yo)

5.17yrs

Tenure

Mr. Kennedy Uzoka has been the Chief Executive Officer and Group Managing Director of United Bank for Africa Plc since August 1, 2016. He was the Executive in charge of the Group’s businesses in New York a...


Leadership Team

Experienced Management: UBA's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: UBA's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Bank for Africa Plc's employee growth, exchange listings and data sources


Key Information

  • Name: United Bank for Africa Plc
  • Ticker: UBA
  • Exchange: NGSE
  • Founded: 1948
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦287.275b
  • Shares outstanding: 34.20b
  • Website: https://www.ubagroup.com

Number of Employees


Location

  • United Bank for Africa Plc
  • UBA House
  • 57, Marina
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:41
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.