Investment Report on UBA

Company Overview

In 1949 the British and French Bank Limited, a subsidiary of Banque Nationale de Crédit (Paris), began operation in Nigeria. It was against the backdrop of Nigeria's independence from Britain that British and French Bank Limited metamorphosed into UBA in 1961. UBA became a company quoted on the Nigerian Stock Exchange in 1970.

Investment Thesis

It has a large distribution network in Nigeria from where it derives roughly 75% of its revenue and 73% of its Profit After Tax (PAT). Total deposits have grown at a 3-year compound  annual rate of 9% compared to 5% of a year ago. However, loans are expanding faster than deposits which has pushed total debts to over NGN500 billion. 

Financial Overview

The bank's turnover has increased at an average of 18.9% over the past six years due to a steady rise in interest income. Interest income has been growing at compound rate of 19.2% in the last six years.

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