Union Bank’s PBT hits ₦12.3bn in H1 2022  

COMFORT EKELEME

Union Bank of Nigeria Plc Group said its Profit Before Tax (PBT) went up by a 6.7per cent to ₦12.3billion in Half Year (H1) 2022 as against the ₦11.5billion recorded in the half year 2021.

In its unaudited financial statements for the quarter ended 30th June 2022, the bank said Gross earnings went up 12.5per cent to ₦87.4billion in the period under review as against the ₦77.7billion in H1 2021 driven by higher earning assets.

Also, the banks said its Net operating income after impairments went up by a 2.6per cent to ₦49.6billion (₦48.3billion in H1 2021) driven by higher trading income, while Non-interest income was down by a 24.1per cent to ₦21.1billion (₦27.7billion in H1 2021) due to foreign exchange revaluation loss

Operating expenses went up 1.3per cent to ₦37.3billion (₦36.8billion in H1 2021) an outcome of higher non-discretionary regulatory costs and power costs.

Meanwhile, Customer deposits were up by 7per cent at ₦1.5 trillion (₦1.4 trillion in Dec 2021), and Gross loans: were down a 0.4per cent at ₦895.3billion (₦899.1billion in Dec 2021)

Non-performing loans ratio was flat at 4.4per cent (4.3per cent as of June 2021)

Commenting on the results, its Chief Executive Officer, Mudassir Amray 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 the 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,” he said.

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

Speaking further, Amray said, 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,” he said.

Speaking on the H1 2022 numbers, Chief Financial Officer, Joe Mbulu said, “We have continued to deliver improved efficiency, enabling growth in PBT, which grew by 6.7per cent to ₦12.3billion. 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 24per cent.

He said, “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 7 per cent to N1.5 trillion while our risk assets dropped slightly by 0.4per cent to ₦889.1billion from N895.3billion as of year-end 2021.

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