Union Bank posts N73.7b gross earnings in H1
Union Bank of Nigeria Plc has posted gross earnings of N73.7billion in its half-year operations, against N60.1billion achieved in the corresponding period in 2016.
Specifically, the bank’s unaudited result for the half -year ended June 30, 2017, showed 23 per cent rise in gross earnings to N73.7billion from N60.1billion recorded a year ago.
Similarly, bank’s profit after tax also increased from N8.7billion in 2016 to N9.2billion during the period under review, while profit before tax stood at N9.5 billion, representing six per cent rise, compared to N8.9 billion posted in 2016.
The bank attributed the performance to improved foreign exchange availability, which enabled the bank to reduce its foreign currency loan book during the period.
Interest income also increased by 31 per cent from N44.3billion to N58.3billion, while customer deposits stood at N759.3billion, higher than N658.4billion posted in 2016.
According to a statement by the bank, “Union Bank remains on course to meet its key 2017 business objectives, including plans to raise up to N50 billion in Tier 1 capital through a rights issue during the third quarter.
It explained that the capital increase will support the bank’s strategy to accelerate business growth, and position itself as a leading commercial bank in Nigeria.
The bank added that the rights issue is expected to launch in the third quarter once all regulatory approvals have been secured.
The Chief Executive Officer of the bank, Emeka EmuwaUnion-Bank, explained that second half of the year would remain a busy period for the bank with the launch of its N50billion rights issue. He added that the bank would remain focus on enhancing the operational efficiency of the franchise.
“As our centenary celebrations continue and with the launch of our ₦50 billion rights issue in the second half of the year, 2017 will remain a very busy year for the Bank.
“With our clear focus on enhancing the operational efficiency of the franchise, Gross Earnings grew by 23 per cent in the first half of the year to ₦73.7 billion, from ₦60.1 billion in H1 2016. In a challenged economy, the Group delivered Profit Before Tax (PBT) of ₦9.5 billion, a 6 per cent growth over the corresponding period in 2016.
In the second half of the year, our focus will centre on our rights issue launch; we will remain nimble to take advantage of emerging opportunities and while improving on service delivery to our customers,” he added.
The Chief Financial Officer, Oyinkan Adewale, explained that improved foreign exchange availability enabled the bank to reduce its foreign currency loan book by 44 per cent from 50 per cent at the end of 2016.
“Going into H2 2017, we will focus on optimising funding costs and continue to keep operating expenses in check, while applying sound risk management practices to minimize impairment costs to ensure we deliver a sustainable financial performance.”
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