One of Nigeria’s oldest and longest financial institution, Union Bank, announced its audited financial statements for the year ended 31st December 2019 which reflect strong growth in the Bank’s underlying business operations and enhanced profitability. The performance also demonstrates the impact of some of the key operational and cost-saving initiatives that have been implemented to accelerate growth and profitability.
The Bank Financial Highlights:
Profit before tax: up 33% to ₦24.7bn (₦18.7bn in FY 2018)
Gross earnings: grew 14% to ₦159.9bn (₦140.1bn in FY 2018), driven by an increase in earning assets
Interest income: up 11% to ₦116.5bn (₦104.8bn in FY 2018)
Net interest income before impairment: up 1% to ₦51.7bn (₦50.9bn in FY 2018)
Non-interest income: up 23% to ₦43.3bn (₦35.3bn in FY 2018); driven by growth in fees and commission income as well as recoveries
Net operating income: up 6% to ₦95.5bn (₦89.7bn in FY 2018)
Operating expenses: down 0.4% at ₦70.8bn (₦71bn in FY 2018); driven by our cost optimization programme
Gross loans: up 20% to ₦595.3bn (₦496.8bn in December 2018) in line with our drive to create quality risk assets across key economic segments of opportunity
Customer deposits: up 5% to ₦886.3bn (₦844.4bn in December 2018); reflecting the strength of the brand in a very competitive environment for deposits
Its Key Operational Highlights Includes:
On profitability; a steady focus on bottom-line initiatives including recoveries, lending and cost discipline delivered significant results across key income lines boosting PBT by 33%, notwithstanding a tough operating environment. Subject to shareholders’ approval, a dividend of 25 kobo per 50 kobo shares is being proposed. The bank also declares dividend to its shareholders.
Comment here