Lagos, Dec. 30, 2023 – Union Bank Plc has announced impressive financial results for the third quarter ending Sept. 30, 2023.
The bank reported a Profit Before Tax (PBT) of N102.3 billion, a growth of 461.1 percent over the N18.2 billion posted in the corresponding period in 2022.
This achievement is due to a surge in its gross earnings of N309.1 billion, a 120 percent increase from N140.6 billion in same period in 2022.
The financial highlights further showed a substantial rise in its non-interest income which soared to N144 billion from N28.3 billion in the same period of 2022, an exceptional growth of 409 percent.
Net operating income after impairments also recorded a remarkable upswing by 121 percent, reaching ₦168.7 billion from N76.3 billion in 2022.
Operating expenses increased by 14.2 percent to ₦66.4 billion, attributable to factors such as the inflationary environment, elevated power costs, and non-discretionary regulatory expenses.
Despite this, the bank demonstrated a robust performance with gross loans escalating by 38.1 percent to ₦1.38 trillion, and deposits witnessing a substantial 30 percent increase, reaching ₦1.93 trillion, a testament to the unwavering confidence of customers in the brand.
Commenting on the results, Mudassir Amray, its Managing Director and CEO, expressed satisfaction with the strong financial results, citing a record-breaking revenue increase and impressive profitability figures.
He attributed these achievements to the bank’s strategic positioning of the balance sheet, effective liability generation and the creation of responsible risk assets.
Amray said the growth in the bank’s revenue and profitability exceeded expectations, underscoring the success of the wholesale banking strategy.
Its non-interest income saw a phenomenal surge by 409 percent to reach ₦144 billion.
The bank CEO identified the bank’s customer-centric approach, robust product portfolio and innovative channels as key contributors to the 30 percent growth in customer deposits.
The bank remains well-capitalised with a Capital Adequacy Ratio (CAR) of 15.4 percent, while its non-performing loans remain below the regulatory limit of 3.7 percent.
Amray expressed optimism about the future of the bank, citing strong business fundamentals, a customer-centric approach and a dedicated team that have positioned the bank to seize opportunities in the evolving market.
Addressing the merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion with all regulatory requirements being fulfilled.
He believes that the merger will further strengthen the bank’s position and financial performance.
He said: “We remain optimistic about the future and are confident in our ability to sustain momentum.
“Our strong business fundamentals, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly evolving market.
“On the merger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalisation of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.
“Net operating income after impairments increased by 121 percent to ₦ 168.7 billion from ₦76.3 billion in September 2022 on the back of increased net revenue across our key business segments – corporate, retail and SME.
“Although our operating expenses increased by 14 percent to ₦66.4 billion compared to ₦58.1 billion in September 2023, we significantly improved our Cost to Income Ratio to 39.3 percent from 76.1 percent recorded in September 2022.
“This improvement was due to our effective management of costs, implementation of efficiency measures, optimisation opportunities, and strong revenue growth.
“The high inflationary environment, non-discretionary regulatory costs, and power costs mainly caused the increase in operating expenses.
“The Bank maintained a solid balance sheet position as Gross Loans grew strongly by 38.1 percent to ₦1.4 trillion compared to ₦.1.0 trillion in December 2022 and Customer deposits by 30 percent on the back of increased New-to-Bank customers, sales promotion, and product patronage.
“Given the unwavering confidence our customers have bestowed on us, we are confident of finishing the year strong.
“The Bank will continue to invest in technology to improve customer interactions across our channels and drive efficiency.” (GBN)
