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Union Bank posts N175 billion gross earnings

By Helen Oji
15 April 2022   |   3:08 am
Union Bank Plc has posted gross earnings of N 175 billion in its 2021 operations as against N160.7 billion recorded the previous year.

Union bank

Union Bank Plc has posted gross earnings of N 175 billion in its 2021 operations as against N160.7 billion recorded the previous year.

The bank’s audited result for the period ended December 31, 2021 showed 8.9 per cent rise in gross earnings to N175 billion.

The bank’s profit before tax (PBT), however, dropped by 19.3 per cent to N20.5 billion from N25.4 billion achieved in 2020.

The bank’s non-interest income rose from N44 billion to N55.7 billion, representing a growth of 26.7 per cent. It was driven by significant increases in debt recoveries. Its net operating income after impairments declined by 3.6 per cent to N99.7 billion from N103.4 billion posted in the corresponding period of 2020.

While customer deposits increased by 20.4 per cent to N1.4 trillion from N1.1 trillion in the corresponding period in 2020.

Commenting on the results, the Chief Executive Officer of the bank, Emeka Okonkwo, said the bank is currently increasing its customer engagement and product penetration, following an enhancement in its operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions

He pointed out that the initiative is currently translating into higher customer revenues across geographies.

“On the back of this, the Bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme.

We continued our strong growth in non-interest income through a combination of aggressive recoveries, which grew 119 per cent in the period, from N7.2 billion to N15.9 billion and further growth in fee and commission income by 33 per cent and e-business 26 per cent.

“These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels. Total active UnionMobile users now stand at 3.3 million, up 20 per cent while our Union360 customer base grew by 22 per cent to 26,400.”

According to him, the bank will continue to focus on broadening and deepening its strong foundations, while enhancing the digital delivery platforms and service propositions to customers.

“We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability.

“As we turn a new chapter for our Bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future.”

Also speaking, the Chief Financial Officer of the bank, Joe Mbulu, said: “We maintained very strong cost controls during the year despite the inflationary pressures and the translation effect of currency depreciation on our cost base.

“We have remained proactive in the way we manage our growing risk assets, maintaining our asset quality during the year with our NPL ratio growing marginally from four per cent to 4.3 per cent.”

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