Union Bank of Nigeria (UBN) has posted a 23 per cent growth in gross earnings for the half year (H1) ended June 30, 2017.
The bank’s gross earnings for the period under review rose to N73.7 billion against N60.1 billion achieved in the preceding period. This is contained in the bank’s half year result published by the Nigerian Stock Exchange (NSE).
The company’s profit before tax grew by six per cent to N9.5 billion compared to N8.9 billion achieved in the corresponding period of 2016. Profit after tax stood at N9.2 billion as against N8.8 billion recorded in the previous period.
Interest income climbed 31 per cent to N58.3 billion versus N44. 3 billion recorded in 2016. This was driven largely by Naira devaluation that fuelled growth foreign currency-denominated loans.
Net interest revenue before impairment rose by per cent to ₦31.7 billion as against ₦30.9 billion in the first half of 2016 as interest income rose by 19 per cent to ₦26.3 billion against ₦22.2 billion in the first half of 2016, propelled by reduction in impairment charges.
Emeka Emuwa, Union Bank’s chief executive officer, said in Lagos that the bank would continue to focus on enhancement of operational efficiency.
“As our centenary celebrations continue and with the launch of our ₦50 billion rights issue in the second half of the year, 2017 will remain a very busy year for the bank,” Emuwa said “With our clear focus on enhancing the operational efficiency of the franchise, Gross Earnings grew by 23% in the first half of the year to ₦73.7 billion, from ₦60.1 billion in H1 2016.”
He added that in spite of stiff competition, the bank’s sales strategy and competitive brand has continued to provide positive momentum as evidenced by customer deposits that grew by 15 per cent to N759.3 billion in the period compared to N658. 4 billion recorded in December 31, 2016.
Emuwa stated that the bank focus in the second half of the year would centre on rights issue launch.
“We will remain nimble to take advantage of emerging opportunities while improving on service delivery to our customers,’’ he added.
Emuwa stated that the bank plans to focus on optimising funding costs, keep operating expenses in check, and apply sound risk management practices to minimise impairment costs.
