Union Bank Nigeria Plc (UBN) has announced its unaudited financial statements for the period ended September 30, 2019 with profit before tax (PBT) gaining five per cent to N15.6 billion as against N14.9 billion reported in nine months ended September 30, 2019.
The group financial showed gross earnings dropping by four per cent to N117.2billion as against N122.2billion reported in nine months of 2018 over decrease in average earning assets
The unaudited results to the Nigerian Stock Exchange (NSE) on Wednesday showed Interest income dropping two per cent to N90billion in nine months of 2019 as against N91.5billion reported in prior nine months ended September 30, 2018.
UBN’s net interest income after impairment rose by six per cent to N44.3billion as against N42billion in nine months of 2018, driven by the impact of collections on impaired facilities
The financial institution non-interest income was down by 12per cent to N27.1billion from N30.7billio n attributable to reduced market volatility in 2019 which had an impact on trading income.
The group for the period reported cash recoveries was up by 114per cent to N8.4billion compared to N3.9billion reported in nine months of 2018 while net operating income was down to N71.4billion as against N72.7billion reported in nine months of 2018.
The group reported gross loans that added nine per cent to N566.5billion in nine months ended September 30, 2019 from N519.7billion reported in full year ended December 31, 2018 driven by increased risk asset creation across priority sectors in the economy
In addition to balance sheet, UBN customer deposits was up by four per cent to N892.9billion from N857.6billion reported in 2018 reflecting UBN continuing acquisition of low-cost deposits driven by strengthened brand affinity.
The Chief Executive Officer, UBN, Mr. Emeka Emuwa, in a statement said “PBT for the Group is up to N15.6billion, 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 28per cent growth in our electronic channels fee income which is at N5.6billion for the period. Union Bank’s debt recovery drive continues to record successes with N8.4billion of recoveries year to date.
“In line with our stated business objectives, we are continuing to grow our asset book by creating quality risk assets in targeted sectors. This has led to a nine per cent growth in our loan portfolio to N566.5billion compared to N519.7billion at year-end 2018.
“Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touch points.”
Speaking on the nine months ended September 30, 2019 figures, Union Bank’s Chief Financial Officer, Joe Mbulu said, “While we had a slight decline in Gross Earnings for the Group from N122.2billion to N117.2billion in 2018,our efficiency initiatives, including the deployment of Robotics Process Automation as well as our cost optimisation programme, ensured we delivered four per cent growth in Profit After Tax (PAT), recording N15.2billion compared to N14.7billion in the prior year period.
“Our operating expenses reduced by three per cent to N56.2billion from N58billion in nine months of 2018 and the Bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10per cent to N9.5billion from N8.7billion for the corresponding period in 2018.
”We continue to maintain adequate levels of capital with our Capital Adequacy Ratio (CAR) at 17.8per cent which is above the regulatory threshold. Non-Performing Loans (NPLs) declined to eight per cent from 8.7per cent as at year-end 2018.”