Union Bank Half year profit Hits N11.5bn
Union Bank of Nigeria (UBN) Plc has recorded double-digit growths in the first half of 2018 with net profit rising by 25 per cent to N11.5 billion.
The interim report and accounts of UBN just made public for the period ended June 30, 2018 at the Nigerian Stock Exchange (NSE) indicated that gross earnings rose by 16 per cent to N83.3 billion in first half 2018 as against N72.1 billion recorded in first half 2017. Interest income had risen by 10 per cent from N56.6 billion in 2017 to N62.2 billion in 2018. Non-interest income grew by 37 per cent from N15.4 billion to N21.1 billion.
Net operating income increased by 22 per cent from N41.9 billion to N50.9 billion. Profit before tax rose by 23 per cent to N11.7 billion in first half 2018 as against N9.5 billion recorded in comparable period of 2017. After taxes, net profit rose from N9.2 billion in first half 2017 to N11.5 billion in first half 2018.
Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the first half performance showed that the bank has continued to see positive results from its efficiency and productivity drive.
According Emuwa, across all its business lines, the bank witnessed strong underlying performance, translating into improved earnings as it also continued to focus on the recovery of non-performing loans.
He noted that with the resolution of the large real estate exposure which was impaired in December 2017 in second quarter of this year, the group’s non-performing loan ratio came down to 10.8 per cent from 14.9 per cent and 19.8 per cent recorded by March 31, 2018 and December 31, 2017 respectively.
“The group continues to demonstrate its ability to deliver strong results notwithstanding a competitive and challenging operating environment,” Emuwa said.
He noted that the group would in the second half of the year, continue to focus on productivity, leveraging its enhanced platform to deliver best-in-class services to its customers and taking advantage of targeted opportunities across business lines and geographies.
Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Oyinkan Adewale pointed out that with low-cost deposits now accounting for 70 per cent of total deposits as against 67 per cent as at December 2017, group’s cost of funds fell in first half of 2018.
“We are pleased that for the first time since 2012, the group’s retained earnings moved from a negative to a positive position, thus eliminating a major technical impediment to the payment of dividends,” he said.
