Union Bank Profit After Tax Rises To N15.2 billion In Q3

Union Bank Plc has announced a 4 per cent rise in its Profit After Tax to N15.2 billion in the banks third quarter result ending October 30th, 2019, compared to N14.7 billion in same period of 2018.

Also, the bank’s statement of financial health made public on the website of the Nigerian Stock Exchange (NSE) on Wednesday also showed that the bank’s gross loan increased by 9 per cent to N566.5 billion as against N519.7 billion in December 2018.

 Commenting on the results, Emeka Emuwa, CEO said:“Profit Before Tax (PBT) for the Group is up to ₦15.6bn, a 5 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 28 per cent growth in our electronic channels fee income which is at ₦5.6bn for the period. Our debt recovery drive continues to record successes with ₦8.4bn 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 9 per cent growth in our loan portfolio to ₦566.5bn compared to N519.7bn at year-end 2018. Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touchpoints”, he added.

Speaking on the 9M 2019 numbers, Chief Financial Officer, Joe Mbulu said:

“While we had a slight decline in Gross Earnings for the Group from ₦122.2bn to ₦117.2bn in 2018, our efficiency initiatives, including the deployment of Robotics Process Automation as well as our cost optimisation programme, ensured we delivered 4 per cent growth in Profit After Tax (PAT), recording ₦15.2bn compared to ₦14.7bn in the prior year period.

“Our operating expenses reduced by 3 per cent to ₦56.2bn from ₦58.0bn in 9M 2018 and the Bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10% to ₦9.5bn from ₦8.7bn for the corresponding period in 2018.

“We continue to maintain adequate levels of capital with our Capital Adequacy Ratio (CAR) at 17.8 per cent which is above the regulatory threshold. Non-Performing Loans (NPLs) declined to 8.0 per cent from 8.7 per cent as at year-end 2018”, he added.

The bank’s results at a glance

Group Financial Highlights:

  • Profit before tax: up 5% to ₦15.6bn (9M 2018 – ₦14.9bn)
    • Gross earnings: down 4% to ₦117.2bn (9M 2018 – ₦122.2bn) due to a decrease in average earning assets
  • Interest income: down 2% to ₦90.0bn (9M 2018 – ₦91.5bn)
  • Net interest income after impairment: up 6% to ₦44.3bn (9M 2018 – ₦42.0bn) driven by the impact of collections on impaired facilities
  • Non-interest income: down 12% to ₦27.1bn (9M 2018 – ₦30.7bn) driven by reduced market volatility in 2019 which had an impact on trading income. Cash Recoveries was up 114% to N4bn (9M 2018 – N3.9bn)
  • Net operating income: down 2% to ₦71.4bn (9M 2018 – ₦72.7bn)
  • Operating expenses: down 3% to ₦56.2bn (9M 2018 – ₦58.0bn) as a result of our sustained cost optimisation programme
  • Gross loans: up 9% to ₦566.5bn (Dec 2018 – ₦519.7bn) driven by increased risk asset creation across priority sectors in the economy
  • Customer deposits: up 4% to ₦892.9bn (Dec 2018 – ₦857.6bn) reflecting our continuing acquisition of low-cost deposits driven by strengthened brand affinity

Post Author: Friday Ekeoba