Union Bank declares 47% increase in PBT

Union Bank of Nigeria Plc has declared a N30.2billion profit before tax in its 2022 audited financial year, an increase of 47 per cent from N20.5billion reported in 2021 financial year.

One of the oldest financial institutions in Nigeria on the floor of the Nigerian Exchange Limited (NGX), on Wednesday disclosed that its gross earnings was up by 19per cent to N208.2 billion in 2022 from N175 billion in 2021), driven by strong growth in Net Interest Income.

Union Bank said its gross loans hits N1trillion in 2022, an increase of 11 per cent from N899.1billion in 2021, as it expanded lending to vital economic sectors.

Also, customer deposits was up by nine per cent to N1.48 trillion in 2022 FY from N1.36 trillion in 2021FY as the management expanded its product base and digital channels.

Commenting on the results, MD/CEO, Mudassir Amray, in a statement said: “Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers.

“On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.

“The Bank’s gross earnings grew by 19per cent to N208.1 billion from N175 billion in 2021. Whilst non-interest income declined marginally by one per cent. Net interest income after impairment grew 26.1per cent to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1per cent from N20.5 billion recorded in 2021.

“In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities.

“As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them.”

Speaking on the FY 2022 numbers, Chief Financial Officer Joe Mbulu said: “Our financial performance is a testament to the disciplined execution of our plans for the year and resilience against all odds. While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage.

“Operating expenses increased marginally by 0.43 per cent due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5 per cent from 79.4 per cent in 2021 due to cost control measures implemented during the year.

“The Bank’s balance sheet remains strong, with total assets increasing by 8.8 per cent to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5 per cent from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8 per cent to N 1.48 trillion.

“While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our NPL ratio reduced from 4.3 per cent to four per cent, and the capital adequacy ratio remained within regulatory limits at 14.4per cent.”

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