Union Bank of Nigeria Plc 2016 FY Conference Call & Earnings Presentation - The Key Takeaways


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;

  • The bank’s liquidity ratio at 40% is well above the regulatory requirement of 30%.
  • The bank’s NPL ratio at 7.14% in 2016 from 7.0% in 2015 reflects continued difficult macroeconomics environment for its customers as the bank remained focused on NPL recovery and continuous monitoring of loan book.
  • The bank’s intends to prioritize continued investment in the right people  and continuous training to up-skill staff in 2017.
  • The banks plans to achieve strong liquidity management and as well focus on FX liquidity generation via business segments; and
  • The bank intends to position itself to achieve positive brand perception and as well invest in innovation.

Related News

1.     UBN Declares N15.39 billion PAT in 2016 Audited Results; Grows PAT by 7.6%(SP:N5.00k)

2.      Union Bank Wins Most Efficient Bank in E-Reference Operations Award

3.      UBN declares N13.01 billion PAT in Q3'16 result,(SP:N4.50k)

4.      UBN declares N8.76 billion PAT in Q2'16 result,(SP:N4.50k)

5.      Union Bank Plc Q4 15 Conference Call Earnings Presentation The key takeaways

6.      UBN declares N13.98 billion PAT in 2015 Audited Result SP N5.60k

7.      Union Bank appoints New Chairman

8.     UNION BANK to showcase Simpler Smarter Solutions at the Lagos International Trade Fair

9.      Union Bank launches UnionKorrect for Simple and Smart Saving

10. UBN Grows PAT by 15.5 in Q3 15 Result SP N5 67k


Related News