According to a report by the United States-based banking giant, JP Morgan, investors in one of Nigeria’s financial institution, United Bank for Africa Plc (UBA), can make a possible return of 45 percent over the next 12 months.
The reports which cover business and economy in CEEMEA region (Central and Eastern Europe, Middle East and Africa) report was released late October 2013.
“UBA offers an attractive 45% upside potential over 12 months, among the highest in CEEMEA banks,” the reports stated while further explaining the rationale for recommending the bank’s shares.
“We think UBA’s valuation, despite a strong rally since the beginning of the year, offers an opportunity to buy into probably the deepest valuation discount in CEEMEA banks at current levels,” the JP Morgan report stated.
The recently released third quarter 2013 financial result of UBA shows the banks’s new loan portfolio which stands at N870.4 billion representing 26.7% as against the N687.4 billion loan portfolio for full year of 2013.