The United Bank for Africa (UBA) says it has submitted an application to the Nigerian Exchange (NGX) for the approval and listing of a rights issue totalling 6,839,884,274 ordinary shares.
This followed the bank’s Q3 2024 financial report, which showed a 101.88% year-on-year rise in pre-tax profit to N194 billion and a nine-month total of N603.4 billion, reflecting steady financial growth.
The rights issue, filed through UBA’s stockbroker, United Capital Securities Limited, proposes ordinary shares priced at N35.00 each, with a nominal value of 50 kobo per share.
The offering is applicable to shareholders as of the qualification date, November 5, 2024.
- How bank’s recapitalization ‘ll boost lending to real estate – Expert
- Wema Bank emerges No1 best workplace in Nigeria
A statement by Godstime Iwenekhai, Head of the Issuer Regulation Department, confirmed this, noting that the application is now awaiting NGX’s review and approval.
UBA reported notable growth in Q3 2024, driven by improvements in revenue and profitability, with interest income accounting for 77% of gross earnings.
Despite a 19% decline in Q3, interest income from loans and advances to customers contributed 40.4% of total interest income for the quarter and 37% over the nine-month period.
In contrast, interest income from investments in securities rose, contributing 35% in Q3 and 42% cumulatively over the first nine months, driven by strong performance in the first half of the year.
The report showed a 101.88% year-on-year rise in pre-tax profit to N194 billion, with a nine-month total of N603.4 billion, reflecting steady financial growth.
UBA’s stock performance in 2024 has reflected both market conditions and investor sentiment.
Starting the year at N25.65, the stock faced early declines, dipping to N24.40 by January’s close. February extended the downward trend, but March brought a recovery with a 24.16% gain.
In the second quarter, recapitalisation news led to further declines, with the share price falling to N20.30 by the end of July.
The narrative shifted in August as the stock rebounded, closing above N22 with trading volumes of 510 million shares.
By September, UBA shares climbed to N28.30, and in October, the stock crossed N29, buoyed by increased trading activity.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
