Union Bank Nigeria Plc said its Profit BeforeTax (PBT) for the nine months ended September 30, 2019 stood at stood at N15.6 billion, representing a 5 per cent increase as against the N14.9 billion recorded in 2018.
In the unaudited financial statements for the period ended September30, 2019, released on the floor of the Nigerian Stock Exchange (NSE) the bank’s gross earnings was down4per cent to ₦117.2billion, compared to ₦122.2billion posted in 2018. The drop according to the bank was due to a decrease in average earning assets.
Also, the interest income was down by 2per cent to ₦90.0billion compared to N91.5 billion in 2018. Net interest income after impairment was up 6per cent to ₦44.3billion as against the N42.0billion in 2018 was driven by the impact of collections on impaired facilities.
Further, highlights of the financials shows that non-interest income went down 12per cent to ₦27.1billion, when compared to the ₦30.7billion in 2018 and was driven by reduced market volatility in 2019 which had an impact on trading income. Cash recoveries was up by 114per cent to N8.4billion and N3.9billion in 2018
Net operating income also went down by 2per cent to ₦71.4billion as against the ₦72.7billion in 2018, Operating expenses also decreased by 3per cent to ₦56.2billion as it stood at ₦58.0billion in 2018.
Interestingly, the bank’s customer deposits went up by 4per cent to ₦892.9billion (Dec 2018 – ₦857.6billion) reflecting its continuing acquisition of low-cost deposits driven by strengthened brand affinity.
Commenting on the results, Chief Executive Officers of the bank, Emeka Emuwa said “Profit Before Tax for the Group is up to ₦15.6billion, a 5per 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 ₦5.6billion for the period. Our debt recovery drive continues to record successes with ₦8.4billion 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 hassled to a 9per cent growth in our loan portfolio to ₦566.5billion compared toN519.7billion at year-end 2018.
“Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touch points,” he said.
Speaking on the nine month 2019 numbers, the bank’s Chief Financial Officer, Joe Mbulu said: “While we had a slight decline in gross earnings for the group from ₦122.2billion to ₦117.2billion in 2018, our efficiency initiatives, including the deployment of Robotics Process Automation as well as our cost optimization programme, ensured we delivered 4per cent growth in Profit After Tax (PAT), recording ₦15.2billion compared to ₦14.7billion in the prior year period.
Our operating expenses reduced by3per cent to ₦56.2billion from ₦58.0billion in nine months 2018 and the Bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10per cent to ₦9.5billion from ₦8.7billion 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 8.0per cent from 8.7per cent as at year-end 2018.
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