Banking

Q3-17: Union Bank Suffers Profit Loss Despite 16% Rise in Earnings

Published

8 years ago

31/10/2017

By Modupe Gbadeyanka

One of Nigeria’s long-standing and most respected financial institutions, Union Bank Plc yesterday announced its unaudited results for the nine months ended September 30, 2017.

However, the lender suffered a profit loss during the period, posting N12.4 billion profit after tax in the period under review compared with N13 billion in the same period of last year.

Also, its profit before tax went down by 2 percent to N13 billion from N13.3 billion a year ago, while the net Income is appreciated by 7 percent and the operating expenses increased by 10 percent.

In addition, the interest income rose by 22 percent to N88.5 billion from N72.3 billion in the first nine months of 2016). This was driven mostly by the 23 percent growth in average gross loans from N412 billion for 9M 2016 to N507 billion for 9M 2017.

Furthermore, the net interest income after impairment appreciated by 16 percent to N40.9 billion from N35.2 billion in 9M 2016.

Impairment went down by 53 percent to N6 billion from N12.9 billion recorded 12 months ago with the coverage ratio strengthened to 203 percent as at September 30, 2017, from 182 percent as at December 2016.

Non-interest revenue declined by 6 percent to N21 billion from N22.5 billion in 9M 2016; excluding nonrecurring Naira devaluation gain of N4.7 billion in 9M 2016, 9M 2017 improved by 18 percent.

Operating expenses went up by 10 percent at N49 billion from N44.6 billion in 9M 2016; with the increase driven largely by double-digit inflation amid continued capital investments in technology and Naira devaluation.

Also, the gross loans went down by 5 percent to N508.6 billion from N535.8 billion in Dec 2016, while customer deposits increased by 17 percent to N767.9 billion from N658.4 billion in December 2016).

These initiatives boosted its gross earnings, which went up by 16 percent to N109.5 billion N94.8 billion in 9M 2016).

According to the lender, this was driven by a customer-centric product suite, a revamped digital platform and the launch of a new advertising campaign, which delivered 63 percent YTD increase in new-to-bank customers in 2017.

Union Bank said it remains on course to deliver on its key objectives in 2017.

As previously announced, the bank’s plans to raise N50 billion in tier 1 capital through a rights issue formally opened on September 20 and closed on October 30.

The capital increase supports the Bank’s short to medium term growth objectives as it looks to re-position itself as one of Nigeria’s leading commercial banks. The new capital will also ensure the bank maintains a strong buffer above regulatory capital adequacy requirements.

Commenting on the results, the Chief Executive Officer (CEO) of Union Bank, Mr Emeka Emuwa, remarked that, “We remain encouraged by the results of our customer acquisition strategy, as customers continue to respond to our targeted market offerings and increased brand awareness, following the debut of a new advertising campaign to support the launch of Union Bank’s new digital platform, including our revamped mobile banking app and *826#, our SMS banking platform.

“Customer deposits are up 17 percent from December 2016 to close the period at N767.9 billion. Group Gross Earnings, at N109.5bn, reflect a 16 percent growth compared to the period ended September 30, 2016.

“However, a challenging macro-operating environment, characterised by double-digit inflation, continues to create headwinds for businesses, constrict consumer purchasing power and pressure operating expenses as well as portfolio quality.

“Consequently, core pre-tax earnings for the period were marginally lower at N13 billion compared to N13.3 billion in 9M 2016.

“With the N50 billion capital raise underway, we remain focused on our strategic priorities and expect this new capital to deliver the momentum needed to accelerate the pace of our business growth.”

Speaking further on the numbers, Chief Financial Officer of the bank, Oyinkan Adewale said, “The Group’s net interest income after impairments improved significantly by 16 percent from N35.2 billion to N40.9 billion compared to the period ended September 30, 2016.

“Non-interest income is down by 6 percent compared to 9M 2016, which included one-time revaluation gains.

“With our continued focus on early problem recognition and prudent provisioning, our coverage ratio has strengthened to 203 percent as at September 30, 2017, from 182 percent as at December 2016.

“The impact of Naira devaluation, coupled with the inflationary environment, has pressured our cost-to-income ratio, especially as we continue to make investments in technology critical to our long-term business strategy.

“We are confident that these investments will deliver the expected cost benefits in the medium term. We also expect improved capital adequacy and higher revenues, fuelled by N50 billion of new capital.

Banking

Secure IT, StockMed, 18 Others Make Wema Bank Hackaholics 6.0 Top 20 List

Published

3 hours ago

18/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The six edition of the Hackaholics of Wema Bank Plc has produced 20 top finalists shared equally between two streams, Ideathon and Hackathon.

The Hackathon finalists are Rapid DEV, Secure IT, Neurafeed, Trust Lock Babcock, Pulse Track, IlluminiTrust, Trust Lock FUTA, Fix Fraud AI, KASH Flow and VOC AI.

The Ideathon finalists include PLOY, Fertitude, VarsityScape, Mama ALERT, StockMed, Chao, All Arbitrate, FarmSlate, Sane AI and Cycle X.

They emerged after a two-day pre-pitch held on December 16 and 17, 2025, for the grand finale slated for Friday, December 19, 2025.

They grand finale of Hackaholics 6.0 will convene the top players in Africa’s tech and innovation ecosystem, creating an avenue for these finalists to not only put their creativity to the ultimate test but also give their solutions visibility to potential investors for additional funding opportunities beyond the prizes to be won.

The prizes to be won for the Ideathon include N25 million for the winner, N20 million for the first runner-up, N15 million for the second runner-up and N5 million each for two women-led teams.

In the Hackathon category, the first to fourth-place winners will receive N20 million, N15 million, N10 million and N5 million, respectively.

The pre-pitch saw the top 43 contenders battle in a game of innovation and problem solving, presenting compelling pitches for a chance to make it to top 10 in their respective streams.

After a rigorous stretch of pitches and presentations, the top 20 emerged, securing their spot in the grand finale of Hackaholics 6.0.

“Hackaholics started off as a hackathon and morphed into an ideation. For Hackaholics 6.0, the sixth edition, we decided to give both the builders of new solutions and the refiners of existing ones, an opportunity to make meaningful impact.

“For us at Wema Bank, we understand that innovation isn’t just building from scratch. Sometimes, it’s looking at what exists and developing new ways to optimise that and create more efficiency. This is the idea behind our two-stream Ideathon-Hackathon structure.

“Every year, Hackaholics shows us just how eager and motivated Nigerian youth are when it comes to exploring creativity and innovation, and we are honoured to be the institution that provides them with the platform and resources to put this drive to good use.

“We toured seven cities, indulged 1,460 participants and discovered hundreds of remarkable ideas; some of which needed some refining and some of which deserved to move to the next stage.

“For those who needed to go back to the drawing board, we provided useful guidance and for the top contenders, we were able to shortlist to the top 43, who proceeded to the pre-pitch. To every participant, Wema Bank is proud of you. This is just the beginning,” the chief executive of Wema Bank, Mr Moruf Oseni, said.

Banking

Customs to Penalise Banks for Delayed Revenue Remittance

Published

9 hours ago

18/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Customs Service (NCS) says it will enforce penalties against designated banks that delay the remittance of customs revenue, in a move aimed at strengthening transparency and safeguarding government earnings.

This was disclosed in a statement on the NCS official account on X, formerly known as Twitter and signed by its spokesman, Mr Abdullahi Maiwada, who said the delays undermine the efficiency, transparency, and integrity of government revenue administration.

“The Nigeria Customs Service has noted instances of delayed remittance of customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform,” the statement read.

“Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.

“In line with the provisions of the Service Level Agreement executed between the Nigeria Customs Service and designated banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”

Mr Maiwada disclosed that any bank that fails to remit collected Customs revenue within the prescribed timeline will be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of the delay.

He added that affected banks would be formally notified of the delayed amounts, the applicable penalty, and the deadline for settlement.

“Accordingly, any designated bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay.

“Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement,” the statement read.

Banking

First Bank Deputy MD Sells Off 11.8m First Holdco Shares Worth N366.9m

Published

9 hours ago

18/12/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

The deputy managing director of First Bank of Nigeria (FBN) Limited, Mr Ini Ebong, has offloaded some shares of FBN Holdings Plc, the parent firm of the banking institution.

A regulatory notice from the Nigerian Exchange (NGX) Limited confirmed the development on Thursday.

It was disclosed that the transaction occurred on Friday, December 12, 2025, on the floor of the stock exchange.

The sale involved about 11.8 million shares, precisely 11,783,333 units traded at N31.14 per share, amounting to about N366.9 million.

Mr Ebong, who studied Architecture from University of Ife and obtained Bachelor and Master of Science degrees, became the DMD of First Bank in June 2024. Prior to this appointment, he was Executive Director, Treasury and International Banking since January 2022.

He was previously the Group Executive, Treasury and International Banking, a position he held since 2016 after serving as the bank’s Treasurer from 2011 to 2016.

Before joining First Bank, he was the Head of African Fixed Income and Local Markets Trading, Renaissance Securities Nigeria Limited, the Nigerian registered subsidiary of Renaissance Capital. He also worked with Citigroup for 14 years as Country Treasurer and Sales and Trading Business Head.

He has a passion for market development and has worked actively to drive change and internationalisation of the Nigerian financial markets: foreign exchange, fixed income and securities.

He has worked closely with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) in assisting with the development of fresh monetary and foreign exchange policies, to broaden and deepen markets and open them up to international practices.

At various times he has facilitated and delivered courses and seminars on a wide variety of subjects covering Money Markets, Securities and Foreign exchange trading and market risk management subjects to regulators, corporate customers, banks and market participants.