UBN earns N86.4b, profit hits N13.2b

Union Bank of Nigeria Plc has announces its unaudited results for the month ended September 30, 2015.

Commenting on the results, Managing Director/Chief Executive Officer, Union Bank Plc, Emeka Emuwa, said:
“Our gross earnings grew to N86.4bn in the nine months ended 30th September 2015, representing an 11 per cent increase compared to the corresponding period in 2014. This earnings growth, coupled with sustained cost discipline has enabled the bank deliver a Profit Before Tax (PBT) of N13.2bn, a 11 per cent increase over the same period last year. Looking towards the end of the year, we remain confident that the fundamentals of our business will remain strong, spurred by the momentum of our refreshed brand.

“As we get set to launch Union Bank’s new identity, we have entered a new phase of our transformation. Our new brand identity positions us competitively in the industry and we are confident in our ability to deliver a superior customer experience to our existing customers and attract a new base of customers.”

Further commenting on the 9-months’ financials, Chief Financial Officer, Oyinkan Adewale said: “We are pleased with the financial performance of the Bank during a particularly challenging period for the industry as a whole. Excluding the sale of subsidiaries (gain of N3.4bn YTD Q3 2015 and N6.3bn YTD Q3 2014), Union Bank recorded PBT of N9.8bn for the period under review, up by N4.2bn and representing a 74 per cent growth over the same period in 2014.

“Our loan impairment charges continue to reflect our cautious approach to loan growth and our outlook as we anticipate the impact of economic headwinds on business activity. Even as we continue to invest in our branch infrastructure and step up marketing and communications initiatives, total expenses for the period are 2 per cent lower than the same period in 2014. As we go into the final quarter of the year, we expect to sustain this level of performance, leveraging on our new brand identity. “

Bank Financial Highlights

Balance Sheet and Income Statement-
• Total Assets up 10.3 per cent to close at N1.02trillion (N921bn Dec 2014)
• Net Loans & Advances up 13 per cent to N341.7bn (N302.4bn Dec 2014)
• Customer Deposits up 4% to N526.1bn (N507.4bn Dec 2014)
• Net Interest Income up 4 per cent to N38.8bn (N37.2bn Q3 2014) • Net Operating Income up 2 per cent to N55.5bn (N54.5bn Q3 2014) • Total expenses down 2 per cent at N42.3bn (N43.1bn Q3 2014)
• Profit Before Tax up 11 per cent to N13.17bn (N11.89bn Q3 2014)
• Profit After Tax up 11 per cent to N13.08bn (N11.79bn Q3 2014)

Key Ratios-
• Loan to Deposit Ratio: 70 per cent (64 per cent December 2014)
• Net Interest Margin: 8.76 per cent (8.89 per cent Q3 2014)
• Cost to Income ratio 70.6 per cent (71.6 per cent Q3 2014)
• Return on Equity 8.21 per cent (8.23 per cent Q3 2014) • EPS: 77.2 kobo (69.6 kobo Q3 2014) Group Financial highlights Balance Sheet and Income Statement
• Total Assets up 7 per cent to N1.1 trillion (N1.0 trillion Dec 2014)
• Net Loans & Advances up 16 per cent to N361.5bn (N312.8bn Dec 2014)
• Customer Deposits down 0.1 per cent to N526.9 billion (N527.6bn Dec 2014)
• Net Interest Income up 5 per cent to N40.0bn (N38.1bn Q3 2014)
•Non-Interest Income up 7 per cent to N18.0bn (N16.8bn Q3 2014)
•Net Operating Income up 9 per cent to N53.6bn (N49.3bn Q3 2014)