Fixed Income Analysis /
Nigeria

UBA: Q2 review – Another solid quarter

    Tolu Alamutu
    Tolu Alamutu

    Credit Research Analyst, Banks

    Tellimer Research
    2 September 2019
    Published by

    We are downgrading our recommendation on the UBA (UBANL) 7.75% 2022 bond to Hold from Buy. Like the ZENITH 2022, the UBANL bond is more than 100bps tighter than at the start of the year. 

    We note that fundamentals at UBA remain strong – the issuer generated an annualised ROE of just over 20% in the second quarter, capital ratios improved and so did liquidity metrics.