MD, Union Bank, Funke Osibodu
Union Bank of Nigeria Plc is gradually creeping out of the woods as the financial institution Tuesday announced a reduction in its loss for the year ended December 31, 2011.
The bank, in its audited result released on the floor of the Nigerian Stock Exchange (NSE), reported a loss after tax of N94.878 billion in 2011, compared with a loss of N106.472 billion posted in 2010.
Also, unlike negative net assets of N115.7 billion Union Bank recorded at the end of 2010, the bank ended 2011 with positive net assets of N197 billion in 2011.
Market analysts said the performance showed that effort by the Funke Osibodu-led management to steer the bank from its murky financial waters, had started to yield results.
Analysts noted that the bright prospects in the bank motivated the core investors, Union Global Partners Limited to increase their stake in the bank last week.
Union Global Partners, had last Wednesday consummated the purchase of part of shares owned by Asset Management Corporation of Nigeria (AMCON).
Meanwhile, trading at the stock market closed on a positive note yesterday as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.55 per cent to close at 21,690.54, compared with decline of 0.13 per cent the previous day. Similarly, the market capitalisation of equities added N38 billion to move from N6.886 trillion to close at N6.924 trillion.
Seven-Up Bottling Company Plc led the price gainers with N1.91, trailed by Nigerian Breweries Plc with N1.36. Oando Plc and Presco Plc chalked up N0.59 and N0.47 respectively.
On the other hand, Stanbic IBTC Bank Plc led the price losers with N0.20, trailed by Union Bank of Nigeria Plc with a loss of N0.17.