Union bank targets 60 per cent cost income ratio in 2016
Pledges to improve business processes
Union Bank of Nigeria (UBN) has announced that it is working out modalities that would enable the bank to reduce its cost income ratio from the current 67 per cent figure to 60 per cent for 2016 financial year.
Besides, the bank also assured stakeholders that its 6.99 per cent non-performing loan (NPL) had almost 200 per cent coverage.The Chief Executive Officer of the bank, Emeka Emuwa, while addressing stock brokers at the company’s ‘Facts beyond the figures’ at the Nigerian Stock Exchange (NSE) in Lagos at the weekend, explain that the bank would ensure significant reduction in cost to income ratio against 67 per cent posted in the 2015 financial year.
This, according to him, would help facilitate the bank’s growth and enhance profitability in the next financial year.He stated that the bank’s cost to income ratio stood at 183 per cent in 2011, adding that the bank would also embark on strategic partnerships to ensure sustained growth in 2016 and beyond.
The bank chief assured stakeholders that it would improve its business processes, branch network and channel optimisation to sustain growth and enable the bank to become a leading mid-tier bank by 2018 on a trajectory to be top tier by 2020.
On non-payment of dividend, Emuwa said that the bank was not able to declare dividend due to negative retained earnings, noting that regulatory policy does not permit a company to declare dividend with negative retained earnings.
He, however, pointed out that the bank would engage professionals to ensure that the impediments that resulted to the accrued cost were removed.
He added that the bank would ensure client retention and acquisition, risk management and recoveries as well as cost management.The Chief Executive Officer of the NSE, Oscar Onyema commended the bank for timely release of information at the nation’s bourse, noting that the stock market is driven by timely, relevant and accurate information.
Onyema, however, commended the management of the bank for an improved result in spite of challenging and economic headwinds in the country.
He added that the exchange would remain committed to zero tolerance to market infraction and strict compliance to corporate governance.
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