LAGOS, NIGERIA – April 29, 202 – Union Bank, one of Nigeria’s longest-standing and most respected financial institutions, announces its unaudited financial statements for the quarter ended March 31, 2020.
Bank Financial Highlights:
- Profit before tax: up 19% to ₦6.2bn (₦5.2bn in Q1 2019).
- Profit before tax: up 15% to ₦6.0bn (₦5.2bn in Q1 2019).
- Gross earnings: grew 18% to ₦42.6bn (₦36.1bn in Q1 2019); driven by an increase in earning assets.
- Interest income: up 18% to ₦29.7bn (₦25.2bn in Q1 2019).
- Net interest income before impairment: up 38% to ₦14.8bn (₦10.8bn in Q1 2019); driven by the growth in treasury assets.
- Non-interest income: up 18% to ₦12.9bn (₦10.9bn in Q1 2019); driven by robust trading income, growth in e-business, and revaluation gains.
- Net operating income: up 7% to ₦24.2bn (₦22.7bn in Q1 2019).
- Operating expenses: slightly up 3% to ₦18.0bn (₦17.1bn in Q1 2019).
- Gross loans: up 3% to ₦611.1bn (₦595.3bn Dec 2019).
- Customer deposits: up 1% to ₦897.6bn (₦886.3bn Dec 2019).
Commenting on the results, Emeka Emuwa, CEO said:
“Coming off a strong 219, we maintained a focus on executing our strategic priorities in Q1 202, delivering double–digit growth across all our major income lines.
Profit Before Tax (PBT) grew by 19% to ₦6.2bn from ₦5.2bn in Q1 2019. Our Gross Earnings are also up by 18% to ₦42.6bn from ₦36.1bn in Q1 2019. Our platforms and channels continue to drive our performance as Non-Interest Income increased by 18% from ₦1.9bn in Q1 2019 to ₦12.9bn for the period with e–business fees contributing ₦2.1bn, a 71% growth compared to Q1 2019.
The current COVID–19 pandemic presents daunting challenges for the global economy and consequently Nigeria and our business. Our focus in the short term is on ensuring business continuity through our strong operational risk framework; ensuring the health and well–being of our employees by adopting stringent health and safety protocols at our operating branches and offices; and supporting our customers through the crisis.
We have reinforced our digital platforms to continue delivering value and convenience to our customers while aligning our focus areas to where opportunities emerge during and post COVID–19.
We will continue to support the government, private entities, and our communities in the fight against COVID–19.”
Speaking on the Q1 2020 numbers, Chief Financial Officer, Joe Mbulu said:
“Headline numbers delivered 19% growth in Profit Before Tax to ₦6.2bn compared to ₦5.2bn in Q1 2019.
The 18% YoY growth in Non-Interest Income was driven by the stronger trading income of ₦5bn compared to ₦2.2bn in Q1 2019, e–business income of ₦2.1bn compared to ₦1.2bn in Q1 2019 and revaluation gains of ₦2.7bn compared to ₦.1bn in the same period last year.
Our operational efficiency also improved with Cost–Income Ratio declining YoY to 74.3% from 76.9% in Q1 2019 as our cost optimization program continues to yield results. We have also kept NPL ratios flat currently at 5.9% compared to 5.8% as of December 2019.
While the current COVID–19 pandemic has dimmed the global economic outlook for the year, we will leverage our strong capital position with Capital Adequacy Ratio (CAR) at 19.9% and our solid risk management framework towards the delivery of our 202 objectives.”