Emuwa: Union Bank Being Positioned as Leading Financial Institution

MARKET NEWS

The Group Chief Executive Officer of Union Bank of Nigeria, Mr. Emeka Emuwahas said the bank is being positioned as one of the Nigeria’s leading financial institutions. Emuwa stated this last week at the Nigerian Stock Exchange (NSE)  while addressing  capital market stakeholders  on the ongoing N50 billion Rights Issue.

According to him, the rights issue is one of the key steps being taken to reposition the financial institution.

He said:  “This year, the bank is a hundred years old and we would not be here without all our stakeholders including our shareholders. As we prepare to launch into the future, we launched our N50 billion Rights Issue in order to raise the capital we require to grow the business and position the Bank as one of Nigeria’s leading financial institutions.”

In his remarks, the Executive Director, Market Operations and Technology,

Mr. Ade Bajomo, the Executive Director of the NSE said: “We are pleased that Union Bank has chosen this platform to inform the market of its N50b Rights Issue. Given that the market is driven by timely, relevant and accurate information, interaction with the market through this forum is very welcome and we encourage the Bank to continue.”

The bank is offering 12.1 billion of 50 kobo each   at N4.10 per share to existing shareholders on the basis of five new shares for every seven shares already held asat August 21, 2017. The offer commenced on Wednesday, September 20 and is expected to close on Monday, October 30.

Chapel Hill Advisory Partners Limited is lead issuing house, while   FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are joint issuing houses.

Already, market operators said the N50 billion would boost Union Bank’s performance and deliver good returns to shareholders going forward.  The bank recorded improved results for the half year(H1) ended June 30, 2017. Union Bank recorded gross earnings of  N73.7 billion, showing a growth of 23 per cent from N60 billion in the corresponding period of 2016. Interest income was boosted by naira devaluation-fueled foreign currency loan book to hit N58.3 billion, up from N44.3 billion. Customer deposits rose   15 per cent due to growing confidence in the bank to hit N759 billion as at June 30, up from N658 billion as December 31, 2016. Impairment charge fell by 39 per cent from N8.8 billion to N5.4 billion.

Profit before tax stood at    N9.5 billion, showing a growth of seven per cent compared with N8.9 billion in 2016, while  profit after tax  rose by five per cent from N8.8 billion to N9.2 billion.