Union Bank posts N118.4b revenue, N17.7b profit

Union Bank of Nigeria Plc has posted revenue of N118.4 billion in its 2015 operations, representing eight per cent rise, when compared to N109.8 billion achieved in 2014.

However, the bank posted 12 per cent reduction in profit before tax to N18.1 billion from N20.7 billion recorded in full year 2014, while the profit after tax declined by 13 per cent from N20.5 billion in 2014 to N17.7 billion during the period.

According to a statement by the bank, asset yield improved from 14.9 per cent in 2014 to 16.4 percent, buoyed by securities trading income.

Also, the net interest income rose by six per cent to N53.8 billion compared to N50.6 billion posted in 2014 period.

The bank’s net loan book was up 15 per cent to N349 billion compared to N302.4 billion in December 2014, while customer deposits grew by 12 per cent to N569.1 billion from N507.4 billion as at December 2014, compared to six percent growth achieved in 2014; reflecting increased customer confidence, a re-energised brand and success of new products.

The bank’s expenses were down two per cent to N56.0 billion as against N7.2 billion in the same period in 2014. According to the bank, it has been able to achieve a downward trend in expenses since 2012 from various cost transformation initiatives despite continued investments in people, technology and infrastructure.

The Chief Executive Officer of the bank, Emeka Emuwa, said: “2015 was a challenging year across board, with significant operational and economic headwinds. Notwithstanding the difficult operating environment, Union Bank maintained its focus on business and transformation initiatives, which yielded desired results. Our gross earnings, excluding one-time gain on sale of subsidiaries, are up by 11 per cent compared to 2014. With the launch of a re-energised brand identity and a retail model focused on customer needs, we increased our customer deposits by 12 per cent year-on-year.

Our simpler and smarter banking solutions have enabled us make strides in customer service delivery, which has reflected in independent industry surveys. We continue to strengthen our e-banking platforms as we acquire new customers and migrate existing ones to these platforms, realizing increased gains in revenues and reducing service costs.”

Oyinkan Adewale, Chief Financial Officer, said: “The 2015 numbers reinforce the success of the bank’s transformation. We are particularly pleased with the improvement in asset yield from 14.9 per cent to 16.4 per cent, and our success in holding operating costs down for the fourth successive year, while making investments in technology, people and processes. We continued to deliver more value from our assets; interest income grew by 19 per cent compared to an eight per cent growth in total assets.