Union Bank posts N4.94 billion profit before tax in Q1

Union Bank has declared Profit Before Tax of N4.94 billion in its unaudited results for the first quarter (Q1) ended March 31, 2015.

This was an increase of 11 per cent compared to N4.45 billion for first quarter of 2014.

The Bank also delivered Profit Before Tax (PBT) of N4.9 billion during the quarter, an 11 per cent over the same period in 2014.

Loan book grew by 16 per cent from December 2014, improving cost to income ratio.

According to a statement made available by the bank’s head of media, maintaining the momentum from 2014, gross earnings increased by 13 per cent in the first quarter of 2015 compared to first quarter of 2014, and despite pervasive headwinds in the macro-economic environment.

The balance sheet and income statement indicated that total assets were up four percent to close at N957 billion (N921 billion Dec 2014) Net Loans and advances was up by 16 per cent to N350.1billion (N302.4billion December2014).

Customer Deposits was up by six per cent to N539.4billion (N507.4billion December 2014). Net Interest Income was flat at N12.5billion (N12.6billion first quarter of 2014)

Net operating income was up by three per cent to N18.7billion (N18.2billion first quarter of 2014).

Total expenses were flat at N13.8billion (N13.7billion first quarter of 2014). Profit Before Tax was up by 11 per cent to N4.9billion (N4.45billion in first quarter of 2014).

Total comprehensive income was up by 17 per cent to N5.6billion (N4.8billion first quarter of 2014).

Key ratios included loan to deposit ratio: 70 per cent (64 per cent December 2014). Net Interest Margin: 8.65 month (9.49 per cent for first quarter of 2014].

Cost to income ratio, 74 per cent (76 per cent Q1 2014). Return on Equity, 9.5 per cent (9.4 per cent 2014).

Total Assets was up by 1.5 per cent to N1.02 trillion (N1.0 trillion Dec 2014). Net loans and advances were up by 18 per cent to N367.8bn (N312.8billion December 2014).

Customer Deposits up was up by three per cent to N545.8 billion (N527.6billion in Dec2014). Net Interest income was flat at N13 billion (N13 billion in first quarter of 2014). Non-Interest Income was up by 80 per cent to N6.4billion (N3.5billion in first quarter of 2014.

Commenting on the first quarter results, Managing Director/CEO of Union Bank Plc, Emeka Emuwa, said “during the first quarter of 2015, the bank was focused on delivering critical operational and technology initiatives.

“We have completed migration to Oracle Flexcube UBS 12.0, the latest version of the Flexcube banking platform, which will eliminate previous system redundancies and enable faster customer service and turnaround times in our branches once full integration has been achieved by mid-year.

“In addition, we continued to focus on growing our corporate and commercial businesses and enhancing our retail product offering’’, he said.

Also commenting, Chief Financial Officer, Mrs. Oyinkan Adewale, said: “Once again, the bank has been able to translate its operational efficiency improvements into strong financial results. Excluding gains from the sale of subsidiaries (N2.4 billion in Q1 2015 and N3.7 billon in first quarter of 2014), the Bank’s PBT increased by N1.8 billion in first quarter of 2015 over first quarter of 2014.

“In addition, we recorded a 6.3 per cent growth in customer deposits to N539.4 billion and a 15 per cent increase in the loan book to N375.6billion during the first quarter compared to December 2014.

“The focus for 2015 will be to sustain the positive trend in our cost to income ratio, while utilizing the balance sheet more efficiently to take advantage of opportunities in defined segments of the economy where we expect to see increased activity this year,” she said.