As the Central Bank of Nigeria (CBN) moves to tighten the supervisory noose on Systemically Important Banks (SIBs), United Bank for Africa Plc (UBA) is one of the SIBs riding easy.

CEOAFRICA gathered that the bank’s third quarter results released recently, showed that its key indices are well above the minimum  requirements of the CBN for SIBs.

Under the new CBN requirements for SIBs, eight banks, including UBA, accounting for more than 70 percent of Nigeria’s banking industry assets, are now required to maintain minimum liquidity ratio of 35 percent.

The third quarter results of UBA shows that the bank actually maintains a liquidity ratio of approximately 60 percent, almost twice the minimum required by the CBN, thus making it a net placer of funds in the Nigerian inter-bank market.

These financial indicators meant that UBA has been very effective in balancing financial performance and profitability with long term stability.

United States based investment bank, JP Morgan, in its latest report on the Nigerian banking industry, strongly recommended  the bank’s shares to investors stating that “UBA offers an attractive 45 percent upside potential over 12 monts, among the highest in CEEMEA banks.”