Union Bank grew gross earnings by 6 percent to N118.8 billion in the first nine months of 2020.
This was higher than the N111.9 billion filed in the same period of 2019.
In the unaudited financial statements released on Wednesday, the lender’s profit before tax rose by 2 percent from N15.5 billion posted in the corresponding period to N15.9 billion in the period under review.
Key Financial Highlights of the Report
• Profit before tax: up 2% to ₦15.9bn (from ₦15.5bn in 9M 2019).
• Gross earnings: up 6% to ₦118.8bn (from ₦111.9bn in 9M 2019), driven by an increase in earning assets.
• Interest income: up 1% at ₦85.4bn (from ₦84.9bn in 9M 2019).
• Net interest income before impairment: up 15% to ₦41.7bn (from ₦36.4bn in 9M 2019), driven by increase in earnings assets and lower interest expense.
• Non-interest income: up 23% to ₦33.4bn (from ₦27.1bn in 9M 2019), supported by increased trading income and asset revaluation gains.
• Net operating income: up 1% to ₦69.3bn (from ₦68.7bn in 9M 2019).
• Operating expenses: relatively flat at ₦53.4bn (from ₦53.2bn in 9M 2019), despite currency depreciation, inflationary pressures and unplanned Covid-19 related expenses.
• Gross loans: up 14% to ₦678.0bn (from ₦595.3bn in Dec 2019), reflecting the impact of our targeted lending to the real sector.
• Customer deposits: up 28% to ₦1.1tr (from ₦886.3bn in Dec 2019) reflecting gains on our investments in customer-led products and digital channels which resulted in the acquisition of over 600K new-to-bank customers and deepening of wallet share of existing customers.
Commenting on the results, Emeka Emuwa, CEO said: “Notwithstanding the realities of a tougher operating environment arising from the ripple effects of the Covid-19 pandemic, the Bank delivered a 6% growth in gross earnings from ₦111.9 billion in 9M 2019 to ₦118.8 billion in 9M 2020. In addition, net interest income before impairment rose by 15% to ₦41.7 billion, while non-interest income grew by 23% to ₦33.4 billion.
We reached a major milestone as our customer deposits crossed the ₦1 trillion mark this quarter, growing by 28% to ₦1.1 trillion compared to ₦886.3 billion at the end of 2019. This reflects increasing customer loyalty and our intense retail drive. Our customer acquisition strategy has been reinforced by the versatility of our digital platforms and channels which continue to drive customer satisfaction.
“We grew our loan book by 14% to ₦678.0 billion from ₦595.3 billion in December 2019 as we cautiously extended credit to the real sector. We will continue to explore bankable lending opportunities in the Nigerian economy guided by our robust risk management practices.
“The civil unrest which erupted in October and led to significant destruction of property and small businesses across the country, will have real impact on business and the operating environment; and even as restrictions have eased, Covid-19 also remains a present threat in our day to day operations.
“Heading into the final stretch in 2020, our overarching commitment is to the health and wellbeing of our employees and the safety of our customers. Showing up for our communities is also at the core of who we are and therefore we will work with our partners and through our corporate citizenship initiatives to support individuals, businesses and our communities where we operate as we begin to rebuild and heal as a country.”
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