Monday, May 14, 2018 05:52 PM / Proshare Markets
Union Bank Plc held its FY 2017 and Q1 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank in its description of the operating environment gave an overview of the Nigerian Economy thus giving an insight into the macro-economic conditions, regulatory actions, national priorities and consumer trends. The bank stated that current macroeconomic trends in Nigeria are positive as reserves currently stands at 4-year high of $47.9bn, crude oil price continues to rise and headline inflation decline further to 13.3% in March 2018.
The bank further stated that its transformation journey has positioned it well for the future as it planned to be Nigeria’s most reliable and trusted banking partner by 2019 and beyond.
Union Bank Plc recorded a gross earning of N163.8bn in FY 2017 as against N129.6bn in 2016, up by 26% while it recorded a gross earning of N39.5bn in Q1 2018 as against N34.3bn in Q1 2017, representing 15% growth YoY.
Profit Before Tax remains relatively flat in FY2017 at N15.5bn as against N15.7bn in FY2016 while the bank recorded N5.4bn PBT in Q1 2018, up by 15% from N4.7bn in Q1 2017.
The bank is focused on real opportunities linked with the growth of the Nigerian Economy through investing in key sectors for Nigeria’s growth; grow its loan book by lending to real sectors; continue to drive retail propositions; facilitate trade and transaction banking across value chain and leverage partnerships for business growth and operations.
In a nutshell, below are the key takeaways from the FY 2017 and Q1 2018 earnings presentation made by the bank’s management;
1. The bank continued to record consistent growth in gross earnings
2. Its loan book reflects active collection efforts and write-offs and now focused on optimizing for growth while its diversification of loan portfolio aligns with Nigeria’s economic growth areas
3. Improving asset quality and growing the loan book is a priority for the bank
4. Its 2018 critical growth enablers are all hinged on technology; and
5. The bank sets its FY2018 guidance for loan growth at 10-12%