Union Bank of Nigeria reports 6.7% increase in PBT to N12.3bn

Union Bank of Nigeria Plc has reported 6.7 per cent increase in profit before tax to N12.3billion in half year ended June 30, 2022 from N11.5billion reported in H1 2021.

The bank’s gross earnings was up by 12.5 per cent to N87.4billion in H1 2022 from N77.7billion in H1 2021, driven by higher earnings assets.

The profit & loss figures also revealed net operating income after impairments of 2.6 per cent increase to N49.6billion in H1 2022 from N48.3bn reported in H1 2021,  driven by higher trading income.

In addition, Operating expenses of Union Bank of Nigeria was up by 1.3per cent to N37.3billion from N36.8billion in H1 2021, over an outcome of higher non-discretionary regulatory costs and power costs.

From balance sheet position, Customer deposits was up by 7 per cent to N1.5 trillion as of June 30, 2022 from N1.4 trillion in Dec 2021, while Gross loans dropped by 0.4 per cent to N895.3billion from N899.1billion reported in 2021 full financier year.

Commenting on the results, CEO, Union Bank of Nigeria, Mr. Mudassir Amray, in a statement said: “Following the successful acquisition of majority shares of the Bank by Titan Trust Bank, we are now focused on strengthening the core business and improving operational efficiencies across board.

“In parallel, we are going full throttle on integrating the two banks to form a ‘stronger Union’ positioned to deliver value to all stakeholders, leveraging technology and digital innovation. The integration is expected to be completed by the end of the third quarter.

“In H1 2022, compared to H1 2021, the Bank’s Gross Earnings, Net Interest Income and Profit Before Tax grew by 12.5per cent, 41 per cent, and 6.7 per cent respectively.

“Since taking the reins as Chief Executive Officer as at June 2nd, 2022, I am confident that the Bank has all the necessary ingredients to be a tier 1 bank.

“As we drive towards a seamless integration in the second half of the year, we remain committed to achieving our business objectives. We are excited about exploiting the synergies from the newly expanded franchise post integration.”

Speaking on the H1 2022 numbers, Chief Financial Officer, Union Bank of Nigeria, Joe Mbulu said: “We have continued to deliver improved efficiency, enabling growth in PBT, which grew by 6.7per cent to N12.3billion. Net Interest Income increased by 41per cent during the period, driven by interest income which grew from N47.7billion to N64.3billion during H1 2022.

“The rise in interest income was underpinned by growth in loans/advances which rose by 24 per cent.  “Despite inflationary pressures, our strong cost management model continues to yield dividends. Operating expenses grew slightly by only 1.3per cent to N37.3billion from N36.3billion. Deposits increased by seven per cent to N1.5 trillion while our risk assets dropped slightly by 0.4 per cent to N889.1billion from N895.3bn as at year-end 2021.

“Our capital and liquidity positions remained above regulatory levels, with CAR at 16.4 per cent and liquidity ratio of 39.2 per cent further demonstrating the capacity of our strong balance sheet. Our non-performing loan ratio ended at 4.4 per cent. Furthermore, our coverage ratio remains robust at 140.7per cent.”