Nigeria: Union Bank records 3% growth in gross income in 9 months
Leading financial institution, Union Bank of Nigeria Plc has recorded N121.8 billion gross earnings in the nine months, Q3’21 ended September 30, 2021 representing an upsurge of three per cent as against N118.8 billion recorded in the corresponding period of 2020 ( Q3’20).
The bank’s unaudited results released to the Nigerian Exchange Limited (NGX) showed a profit before tax of N16 billion for Q3’21 as against N15.9 billion in Q3’20. The net operating income after impairments was up three per cent to N71.2 billion from N69.3 billion in Q3’20, driven by stronger non-interest income.
The non-interest income moved up 26 per cent to N42 billion from N33.4billion in Q3’20 supported by growth in fees and commission from e-business, credit and trade transactions as well as debt recoveries.
Other performance indicators showed that the bank’s operating expenses went up three per cent to N55.2billion from N53.4 billion in Q3’20 reflecting higher non-discretionary regulatory costs as well as depreciation and amortisation costs from technology spend.
The gross loans rose by 16 per cent at N855.7billion from N736.7 billion in December 2020, reflecting increased lending to growth sectors of the economy.
The customer deposits rose by 14 per cent at N1.3trilion from N1.1 trillion in Dec 2020, reflecting gains from our marketing drive for low-cost deposits and deepened customer loyalty.
Commenting on the results, Emeka Okonkwo, CEO said: “We continue to demonstrate the resilience of our business despite the volatility in the macro-economic environment, growing our gross earnings by three per cent and delivering stable Profit Before Tax of N16 billion. This stability is underpinned by our strategic focus on deepening our customer engagements and meeting their needs as we grow our core business.
“Consequently, our deposit base is up 14 per cent to N1.3 trillion, and our loan book has expanded by 16 per cent to N855.7 billion driven by our compelling campaigns, new product offerings and effective sales channels. We have also achieved stronger transaction volumes across our businesses and channels, driving growth in fees and commissions, while we ensure robust cost controls.
As we approach the end of the year, we are focused on building on our efficiency and optimising our core business while deepening our relationships with customers.”
Speaking on the 9months results, Chief Financial Officer, Joe Mbulu said: “We are focused on executing our plans for revenue diversification, driving strong growth in transaction volumes while we continue our strong debt recovery initiatives. These are mitigating the on-going impact of relatively low risk asset margins.”