Tuesday, July 30, 2019 /11:00 AM / By NSE With Additional Notes From Union Bank’s Press
Union Bank of Nigeria Plc released its Q2 Unaudited Results for the Period ended June 30, 2019.
Earnings declined by 8.78% to N76.02bn from N83.33bn in the previous year.
Profit Before Tax however grew by 3.96% to N12.13bn from N11.66bn recorded in the previous year.
Profit After Tax grew by 3.45% to N11.85bn.
Net Assets grew by 5.9% to N238.97bn from N225.63bn as at 31st December, 2018.
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Group Financial Highlights:
Commenting on the results, Emeka Emuwa, CEO said:
“Notwithstanding the realities of operating in a challenging economic environment, the Group delivered a 4% growth in Profit Before Tax (PBT) to ₦12.1 billion from ₦11.7 billion in H1 2018.
To sustain growth in earnings, we remained
steadfast in our commitment to delivering value and first-class customer
experience to all our customers. We have developed a concerted and clear plan
to increase our risk assets with our loan book growing by 8% to ₦563.0 billion compared to year-end 2018. The
ability to take on more risk is hinged on our robust risk management and debt
recovery processes working in sync which led to recoveries of over
billion in the period.
We successfully closed our Series 3, 10 year ₦30 billion bond in June, as part of our ₦100 billion debt capital programme. This series, which was once again fully subscribed, is the largest 10-year bond issued by a Nigerian corporate to date. This further reinforces the confidence of the investor community in Union Bank. With this new injection of tier 2 capital, we are well positioned to deliver on our growth strategy and priorities.
Looking ahead, we will continue to focus on opportunities to deliver our simpler, smarter banking promise to our customers while improving internal operational efficiencies which will translate to enhanced shareholder value.”
Speaking on the H1 2019 numbers, Chief Financial Officer, Joe Mbulu said:
“In the first half of 2019, we continued with our expansion strategy to grow our agency banking footprint which in turn boosted customer confidence in our brand. Customer deposits have followed the same trajectory with a 4% growth, to ₦889.5 billion as at June 2019 from ₦857.6 billion in December 2018. Net Interest Income after Impairments is also up 3% to ₦30.5 billion compared to ₦29.7 billion in the same period in 2018.
With our aggressive focus on recoveries and improving asset quality, the Bank’s NPL ratio has continued its downward trend, declining to 7.3% from 8.1% as at December 2018 ahead of full year 2019 guidance. Improvement in asset quality has enabled us to grow our loan book optimally in the first half of 2019, positioning us with the ability to take on emerging opportunities in key sectors of the economy.
Having completed our Series 3 ₦30 billion funding, our Capital Adequacy Ratio (CAR) further strengthened, closing at 19.4% in June 2019 compared to 16.4% as at December 2018.
Our comprehensive cost optimisation programme, the Long-Term Efficiency Acceleration Programme (LEAP), has begun to yield dividends across board with operating expenses declining by 4% to ₦37.5 billion compared to ₦39.2 billion in H1 2018. We believe LEAP will continue to deliver material cost savings through 2019 and beyond, supporting our Cost-to-Income Ratio (CIR) ambition.”