By Dipo Olowookere
In the first quarter of 2020, Union Bank of Nigeria Plc posted double digits growth in both its top line and bottom line.
On Wednesday, the lender released its financial statements for the period ended March 31, 2020 and the numbers were impressive when analysed by Business Post.
The gross earnings for the period increased by 16 percent to N43.9 billion from N37.7 billion, while the net interest income rising 38 percent to N15.0 billion from N10.9 billion in the corresponding period of 2019, with the non-interest income growing 23 percent to N13.0 billion from N10.6 billion.
In the results, the operating expenses of Union Bank increased N18.0 billion from N17.6 billion.
The profit before tax grew by 26 percent to N6.3 billion from N5.0 billion, while the profit after tax improved by 25 percent to N6.1 billion from N4.9 billion, with the earnings per share (EPS) at 21 kobo in Q1 2020 compared with 17 kobo in Q1 2019.
On its balance sheet, the lender grew its total assets by 7 percent year-to-date to N2.0 trillion from N1.9 trillion, with gross loans and advances rising to N611.1 billion from N595.3 billion, with customer depositis growing to N897.4 billion from N886.3 billion and the shareholders’ funds improving to N254.4 billion from N252.3 billion.
Union Bank stated its non-performing loan ratio increased year-to-date to 5.9 percent from 5.8 percent, while the loan to deposit ratio, which the Central Bank of Nigeria (CBN) said should be at least at 65 percent, stood at 68.1 percent over 67.2 percent as at December 31, 2019.
While commenting on the numbers, the Chief Financial Officer of Union Bank, Mr Joe Mbulu, stated that, “Headline numbers delivered 19 percent growth in Profit Before Tax to N6.2 billion compared to N5.2 billion in Q1 2019.
“The 18 percent YoY growth in Non-Interest Income was driven by stronger trading income of N5 billion compared to N2.2 billion in Q1 2019, e-business income of N2.1 billion compared to N1.2 billion in Q1 2019 and revaluation gains of N2.7 billion compared to N0.1 billion in the same period last year.”
CEO of Union Bank, Mr Emeka Emuwa, stated that, “Coming off a strong 2019, we maintained focus on executing our strategic priorities in Q1 2020, delivering double-digit growth across all our major income lines.”
“The current COVID-19 pandemic presents daunting challenges for the global economy and consequently Nigeria and our business.
“Our focus in the short term is on ensuring business continuity through our strong operational risk framework; ensuring the health and well-being of our employees by adopting stringent health and safety protocols at our operating branches and offices; and supporting our customers through the crisis.
“We have reinforced our digital platforms to continue delivering value and convenience to our customers while aligning our focus areas to where opportunities emerge during and post COVID-19.
“We will continue to support the government, private entities and our communities in the fight against COVID-19.”
