Friday, April 07, 2017 8:49 AM / Proshare Markets
Union Bank of Nigeria Plc today holds its Q4’16 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank which was established in 1917 as a colonial bank is celebrating its 100 Years of Strength, Reliability and Growth in 2017.
The operating environment was challenging for the bank considering the fact that the economy witnessed two consecutive quarters of decline between Q4’15 and Q2’16 while it contracted by -1.51% YoY in 2016. This officially indicates a recession.
Despite the economic and regulatory challenges, the bank was able to grow its customer deposits by 15% from N570.6bn in 2015 to N658.4bn in 2016. The growth was led by new products offerings, increased market penetration, financial inclusion initiatives and improved customer adoption.
The bank recorded 73% increase in new-to-bank customers, launched five (5) new retail products, recorded 380% growth in active mobile subscribers, 50% growth in active online subscribers and 48% growth in active cards.
The bank was able to diversify its loan book which grew by 40% from N370.19bn in 2015 to N518.3bn in 2016. 13% of the growth was core volume growth while the remaining 27% growth was driven by the impact of currency devaluation from foreign currency loans. The bank’s coverage ratio was put at 182% which signifies that the NPL book was well covered.
In a nutshell, below are the key takeaways from the 2016 FY earnings presentation made by the bank management;