UBA: Wanted! Investors With Trade Plan, A Dose Of Patience,

The 2023 audited financials filed by the United Bank for Africa at Nigerian Exchange Limited (NGX) showed an impressive leap in interest income, the life-blood of any bank, from N557.152bn recorded at the end of 2022 to N1.08tr; representing 93.1% growth.

UBA Plc, which prides itself as Africa’s Global Bank navigated through the demanding global economic and business climate, posting a record breaking 277.19% growth in profit before tax, which hit N757.68bn in 2023, up from N200.8bn recorded in the comparative period of 2022.

Profit after tax (PAT) surged by an even better 256.89%, rising from N170.3bn in 2022 to N607.7bn in the year under review.
Profit was driven by elevated interest income and gains from foreign exchange, just as Shareholders’ funds improved by an equally significant 120.17%, increasing from N922.1bn in 2022 to reach N2.03tr.

Corporate Action: A dividend of 2.30 was declared.

So far, the bank’s share price rose by over 235% year-on-year as at the close of last year (2023). Currently, the stock’s value has suffered a 25.92% decline from its all time high of N33.95 recorded on the 16th of January.

The stock has broken the T-Line ( 8-Day Moving Average), signaling a down trend. Relative strength index is also moving towards the oversold region (usually 30), but currently reading 46.11 points.

Money flow is currently reading 71.02, indicating that some funds have left this value stock. That notwithstanding, there is still the presence of strong funds in the stock, a pointer to a measure of investor confidence in the stock.

MACD is looking northward (at above the signal line). But from close watch, the signal line is beginning to mount the MACD.

Traders and investors should look out for a good entry point between the range of N20 and N24.15 per share.

A trade plan and good measure of patience is key if you must get the best from this stock and, indeed, any market in the world.