Union Bank Posts N11.3bn Profit

Emeka Emuwa

Union Bank of Nigeria Plc has released its unaudited financial statements for the quarter ended June 30 2020, showing that its profit before tax increased marginally to N11.3 billion, from the N11.2 billion it recorded in the first half of 2019.

The bank disclosed this in a statement yesterday.

Similarly, Union Bank’s gross earnings climbed by 10 per cent to N79.9 billion in the period under review, compared with N72.4 billion it realised in the first half of 2019, just as its interest income improved by six per cent to N57.2 billion, as against the N53.8 billion achieved in the first half of 2019. The performance was driven by an increase in earning assets.

Its net interest income before impairment stood at N28 billion, which was an increase by 21 per cent, as against the N23.2 billion recorded in the first half of 2019, while its non-interest income rose by 22 per cent to N22.7 billion in the period under review.

In the same vein, the bank’s gross loans was up by six per cent, to N630.5 billion, while customer deposits in the period under review was N995.2 billion.

Commenting on the results, the CEO, Union Bank, Emeka Emuwa said: “The impact of Covid-19 and associated movement restrictions on the bank and the wider economy has been broad. The total lockdown of major commercial centers Lagos, Abuja and Ogun and partial lockdowns across the country, slowed business operations in Q2 2020.

“Notwithstanding these significant headwinds, the bank delivered a 10 per cent increase in its top line revenue of N79.9 billion for H1 2020. In addition, net interest income before impairments is up 21 per cent to N28 billion and non-interest income up 22 per cent to N22.7 billion. The slowdown limited growth in key income lines including fees and commissions and cash recoveries.”