Union Bank Plc has released its unaudited Fianancial Statement of the period ended June 30, 2019.

The Union Bank of Nigeria, Plc, has announced its unaudited financial statements for the period ended June 30, 2019 which shows that Profit Before Tax, PBT, was up by 4 per cent to ₦12.1 billion as against N11.7 billion in H1 of 2018

However, gross earnings declined by 9 per cent to ₦76.0 billion as against N83.3 recorded in H1 2018, due to a decrease in average earning assets.

Interest income was also down by 8 per cent to ₦57.3 billion compared to N62.2 billion reported in H1 2018.

Meanwhile net interest income after impairment went up by 3 per cent to ₦30.5 billion during the period under review as against N29.7 billion same period last year, following aggressive drive in collections.

According to the bank, Non-interest income: down 12% to ₦18.7bn (₦21.1bn in H1 2018); due to muted volatility negatively impacting trading income, despite a 27% growth in credit-related fees and 169% growth in cash recoveries at N5.3bn (N1.9bn in H1 2018, Net operating income: slightly down 2% to ₦49.6bn (₦50.9bn in H1 2018). Operating expenses: down 4% to ₦37.5bn (₦39.2bn in H1 2018); reflecting the gains of our cost optimization programme – Project LEAP.

• Gross loans: up 8% to ₦563.0bn (₦519.7bn Dec 2018) driven by increased risk asset creation across priority economic sectors.

Also, it recorded 4 per cent rise in customer deposits to ₦889.5 billion as against N857.6 billion in December 2018, demonstrating the success of its on-going acquisition of low-cost deposits driven by strengthened brand affinity.

Emeka Emuwa, chief executive officer, CEO, of the bank said, “Notwithstanding the realities of operating in a challenging economic environment, the Group delivered a 4% growth in Profit Before Tax (PBT) to ₦12.1 billion from ₦11.7 billion in H1 2018.

To sustain growth in earnings, we remained steadfast in our commitment to delivering value and first-class customer experience to all our customers. We have developed a concerted and clear plan to increase our risk assets with our loan book growing by 8% to ₦563.0 billion compared to year-end 2018. The ability to take on more risk is hinged on our robust risk management and debt recovery processes working in sync which led to recoveries of over N5 billion in the period.”

Speaking further he said, “We successfully closed our Series 3, 10 year ₦30 billion bond in June, as part of our ₦100 billion debt capital programme. This series, which was once again fully subscribed, is the largest 10-year bond issued by a Nigerian corporate to date. This further reinforces the confidence of the investor community in Union Bank. With this new injection of tier 2 capital, we are well positioned to deliver on our growth strategy and priorities.

Looking ahead, we will continue to focus on opportunities to deliver our simpler, smarter banking promise to our customers while improving internal operational efficiencies which will translate to enhanced shareholder value.”

Speaking on the H1 2019 numbers, Chief Financial Officer, Joe Mbulu said:

“In the first half of 2019, we continued with our expansion strategy to grow our agency banking footprint which in turn boosted customer confidence in our brand. Customer deposits have followed the same trajectory with a 4% growth, to ₦889.5 billion as at June 2019 from ₦857.6 billion in December 2018. Net Interest Income after Impairments is also up 3% to ₦30.5 billion compared to ₦29.7 billion in the same period in 2018.

“With our aggressive focus on recoveries and improving asset quality, the Bank’s NPL ratio has continued its downward trend, declining to 7.3% from 8.1% as at December 2018 ahead of full year 2019 guidance. Improvement in asset quality has enabled us to grow our loan book optimally in the first half of 2019, positioning us with the ability to take on emerging opportunities in key sectors of the economy.”