Union Bank Posts Double-digit Growth in Q1 Earnings, Profit before Tax

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Emeka Emuwa

Goddy Egene

Union Bank of Nigeria Plc has announced increased in gross earnings and profit before tax (PBT) for the first quarter ended March 31, 2020. The unaudited results showed that gross earnings rose 18 per cent from N36.1 billion to N42.6 billion. PBT grew by 19 per cent to N6.2 billion, from N5.2 billion. Gross loans improved to N661.1 billion, while customers’ deposits stood at N897 billion.

Commenting on the results, Chief Executive Officer, Union Bank, Mr. Emeka Emuwa, said: “Coming off a strong 2019, we maintained focus on executing our strategic priorities in Q1 2020, delivering double-digit growth across all our major income lines. The current COVID-19 pandemic presents daunting challenges for the global economy and consequently Nigeria and our business. Our focus in the short term is on ensuring business continuity through our strong operational risk framework; ensuring the health and well-being of our employees by adopting stringent health and safety protocols at our operating branches and offices; and supporting our customers through the crisis.”

Also speaking on the Q1 numbers, Chief Financial Officer, Joe Mbulu said the 18 per cent growth in non-interest income was driven by stronger trading income of N5 billion compared to N2.2 billion in Q1 2019, e-business income of N2.1 billion compared to N1.2 billion in Q1 2019 and revaluation gains of N2.7 billion compared to N0.1 billion in the same period last year.

According to him, the bank’s operational efficiency also improved with cost-income ratio declining to 74.3 per cent from 76.9 per cent in Q1 2019 as its cost optimisation programme continues to yield results.