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EUR 4.00 For Business Accounts Only

UBA H1 2022 Results-Impressive Half-Year Performance

United Bank for Africa (UBA) financial results for the first half of the year depicted a strong topline and bottom-line performance, both ending in the double-digit region. For context, Gross Earnings grew by 17.82% YoY to NGN372.36bn. This feeds off increases recorded in Interest Income (+15.60% YoY to NGN257.36bn) and Non-Interest Income (+23.12% YoY to NGN115.00bn) in the period. Furthermore, despite the surge in Operating Expenses (+21.88% YoY to NGN161.90bn), Profit After Tax (PAT) grew 16.10% YoY to NGN70.33bn.

Overall, we retain our target price at NGN10.80 which represents a 43% upside from its current close price of NGN7.55. We rate UBA a STRONG BUY.

Provider
ARM Securities Limited
ARM Securities Limited

ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape. ​

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