Union Bank Profit  Before Tax Declines by 48% in 2015

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By Goddy Egene

Union Bank of Nigeria Plc recorded drops in revenue and profit for the year 2015.  The bank reported gross earnings of N117.2 billion for the year ended December 31, 2015, down  14 per cent  from N135.9 billion in 2015.  Net interest income rose by 7.0  per cent from N52.1 billion to N55.7 billion. But impairment charges soared by 106 per cent from N4.8 billion to N9.9 billion.

Consequently, profit before tax (PBT) fell by 47.5 per cent from N27.7 billion to N14.5 billion, while profit after tax (PAT) fell by 49.7 per cent to N14 billion from N26.8 billion in 2015.

According to the bank, securities trading contributed 4.3 per cent of gross earnings compared with two per cent in 2014. Expenses went down  two per cent  to N56 billion as against N57.2 billion in 2014.

Net loan book  was up 15 per cent from N302 billion to N349 billion, reflecting increased customer confidence.

 Customer deposits improved by 12 per cent from N507 billion to N349 billion.

Commenting on the results,  Chief Executive Officer of Union Bank, Mr. Emeka Emuwa, Chief Executive Officer

said: “2015 was a challenging year across board, with significant operational and economic headwinds. Notwithstanding the difficult operating environment, Union Bank maintained its focus on business and transformation initiatives, which yielded desired results. Our gross earnings, excluding one-time gain on sale of subsidiaries, are up by 11 per cent compared to 2014. With the launch of a re-energised brand identity and a retail model focused on customer needs, we increased our customer deposits by 12 per cent year-on-year.”

According to him, the bank’s simpler and smarter banking solutions have enabled us make strides in customer service delivery, which has reflected in independent industry surveys.

“We continue to strengthen our e-banking platforms as we acquire new customers and migrate existing ones to these platforms, realising increased gains in revenues and reducing service costs,” he said.

Looking ahead,  Emuwa said with the operating environment expected to remain challenging, Union Bank remains focused on delivering quality financial services to our customers and value to all stakeholders.

“We believe we are well positioned to take advantage of opportunities in emerging sectors of the economy as well as deepen our stronghold in key geographies around the country,” he said.

Speaking in the same vein,  Chief Financial Officer, Union Bank, Mrs.  Oyinkan Adewale said: “The 2015 numbers reinforce the success of the bank’s transformation. We are particularly pleased with the improvement in asset yield from 14.9 per cent to 16.4 per cent, and our success in holding operating costs down for the fourth successive year, while making investments in technology, people and processes.”