Banking
Union Bank Recovers N8.4bn Debt as Loan to Deposit Ratio Hits 63.4%
By Dipo Olowookere
Union Bank of Nigeria Plc recorded a mixed performance in the first nine months of this year, with the gross earnings going down by 4 percent to N117.2 billion from N122.2 billion as a result of decline in average earning asset.
However, the profit before tax rose by 5 percent to N15.6 billion from N14.9 billion, while the profit after tax increased by 4 percent to N15.2 billion over N14.7 billion in the same time of last year.
In the period under review, the lender recovered N8.4 billion debts from its customers as a result of its debt recovery drive. This brought about the drop in the bank’s non-performing loans (NPLs) ratio to 8.0 percent from 8.7 percent at year-end 2018.
Union Bank also increased its loan book by 9 percent to N565.5 billion from N519.7 billion at year-end 2018 as part of its efforts to grow its asset book by creating quality risk assets in targeted sectors of the economy.
This helped the bank to push its loan to deposit ratio to 63.4 percent from 60.6 percent as at the end of last year. The bank is on course to meeting the 65 percent December 2019 target set by the Central Bank of Nigeria (CBN) for commercial banks in the country.
In addition, the customer deposits improved during the period by 4 percent to N892.9 billion from N857.6 billion as at December 2018, reflecting the company’s continuing acquisition of low-cost deposits driven by strengthened brand affinity.
But despite these, the interest income of Union Bank went down by 2 percent to N90.0 billion from N91.5 billion, while the non-interest income depreciated by 12 percent to N27.1 billion from N30.7 billion as a result of reduced market volatility in the year, which had an impact on trading income.
Furthermore, the net operating income reduced by 2 percent to N71.4 billion from N72.7 billion, while the financial institution’s sustained cost optimisation scheme led to the 3 percent drop in operating expenses to N56.2 billion from N58.0 billion.
CEO of Union Bank, Mr Emeka Emuwa, while commenting on the results, said, “Our continued focus on consumer centric service and product propositions is yielding solid results, contributing to a 28 percent growth in our electronic channels fee income which is at N5.6 billion for the period. Our debt recovery drive continues to record successes with N8.4 billion of recoveries year-to-date.
“In line with our stated business objectives, we are continuing to grow our asset book by creating quality risk assets in targeted sectors. This has led to a 9 percent growth in our loan portfolio to N566.5 billion compared with N519.7 billion at year-end 2018.”
“Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touchpoints,” the bank executive said further.
On his part, Chief Financial Officer of Union Bank, Mr Joe Mbulu, stated that, “While we had a slight decline in gross earnings for the group from N122.2 billion in 2018 to N117.2 billion, our efficiency initiatives including the deployment of Robotics Process Automation as well as our cost optimisation programme ensured we delivered 4 percent growth in profit after tax, recording N15.2 billion compared with N14.7 billion in the prior year period.
“Our operating expenses reduced by 3 percent to N56.2 billion from N58.0 billion in 9M 2018 and the bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10 percent to N9.5 billion from N8.7 billion for the corresponding period in 2018.
“We continue to maintain adequate levels of capital with our Capital Adequacy Ratio (CAR) at 17.8 percent which is above the regulatory threshold. Non-Performing Loans (NPLs) declined to 8.0 percent from 8.7 percent as at year-end 2018.”
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN