Union Bank Records N117bn Earnings, N15.2bn Profit in Nine Months

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Goddy Egene

Union Bank Nigeria Plc has announced its unaudited financial performance for the nine months ended September30, 2019, showing improved bottom-line. The bank posted gross earnings of N117.2 billion, down from N122.2 billion in the corresponding period of 2018. Net interest income after impairment charges rose six per cent from N42 billion to N44.3 billion.

Profit before tax grew by five per cent from N14.9 billion to N15.6 billion, while profit after tax (PAT) rose by four per cent from N14.7 billion to N15.2 billion.

Further breakdown of the results showed that gross loans improved nine per cent to N566.7 billion to N516.7 billion, while customers’ deposits stood at N892 billion, up four per cent from N857.6 billion in 2018. Total assets appreciated by 23 per cent from N1.463 trillion to N1.8 trillion.

Commenting on the results, Chief Executive Officer, Union Bank of Nigeria Plc, Emeka Emuwa, CEO said: “Profit Before Tax (PBT) for the group is up to N15.6bn, a five per cent increase over the same period in 2018. Our continued focus on consumer centric service and product propositions is yielding solid results, contributing to a 28 per cent growth in our electronic channels fee income which is at N5.6bn for the period. Our debt recovery drive continues to record successes with N8.4bn of recoveries year to date.”

According to him, in line with their stated business objectives, they are continuing to grow their asset book by creating quality risk assets in targeted sectors.

“This has led to a nine per cent growth in our loan portfolio to N566.5 billion compared to N519.7 billion at year-end 2018. Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touch points,” he added.

Also speaking, Chief Financial Officer, Joe Mbulu said: “While we had a slight decline in gross earnings for the group from N122.2 billion to N117.2 billion in 2018,our efficiency initiatives, including the deployment of Robotics Process Automation as well as our cost optimisation programme, ensured we delivered four growth in PAT, recording N15.2 billion compared to N14.7 billion in the prior year period. Our operating expenses reduced by three per cent to N56.2 billion from N58 billion in 2018 and the bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10 per cent to N9.5 billion from N8.7 billion for the corresponding period in 2018.”