Union Bank of Nigeria Pic has released its unaudited financial statements for the quarter ended March31, 2022 to the management and stockbrokers of the Nigerian Exchange (NGX).
Highlights of the results show gross earnings appreciating by 18 per cent to N42.9 billion from N36.4 billion reported in the corresponding period of 2021, driven by strong earning assets from on-lending to key sectors in the Nigerian economy.
Net interest income after impairments rose by 27 per cent to N12.9 billion from N10.1 billion recorded in Q1 2021 while non-interest income went down by 19.1 per cent to N11.5 billion from N14.2 billion in Q1 2021.
Profit before tax went down by 8.8 per cent to N6.4 billion from N7.0 billion in the comparable period of 2021 with operating expenses rising by 3.9 per cent to N18.0 billion from N17.3 billion in the same period of 2021, notwithstanding high inflationary environment.
Gross loans went down by 1.8 per cent at N882.9 billion from N899.1 billion in December 2021 but non-performing loan (NPL) ratio was flat at 4.3 per cent.
Customer deposits, however, went down 3.5 per cent at N1.31 trillion against N1.36 trillion recorded in December 2021; following the pay down of expensive time deposits.
Emeka Okonkwo, CEO of Union Bank, while commenting on the results, said: “In 2022, we renewed our focus on turbocharging productivity and ensuring we fully leverage the strength of our digital channels, regional network and talent to maximise the bottom line.
“Our efforts are gaining momentum and notwithstanding a challenging economic climate in Q1 2022, our Net Interest Income after impairment grew by 27 per cent compared to the same quarter in 2021 from N10.1 billion to N12.9 billion. Gross earnings are also up by 18 per cent to N42.9 billion against N36.4 billion in Q1 2021.
“This was bolstered by improved asset yields, treasury trading income and revenues from our alternate channels. We are steadily seeing increasing customer adoption with a 36 per cent year-on-year (YoY) increase in active users on UnionDirect, our agency banking network, and increasing transaction volumes with a 20 per cent YoY growth across our digital channels.
“Interest Income grew by 41 per cent from N22.2 billion to N31.4 billion as our earnings asset base expanded with a more viable loan portfolio.
“Our NPL ratio is flat at 4.3 per cent (from December 2021), well within the regulatory limit, while cost to income ratio dropped from 79.4 per cent in December 2021 to 73.9 per cent in March 2022. We will continue to drive cost optimization to ensure consistent improvement in efficiencies.
“With a Capital Adequacy Ratio (CAR) of 15.6 per cent, our capital position remains strong.
“On the innovation side, we launched SpaceNXT – a purpose-built hub created to encourage innovation and foster collaboration within the Nigerian tech ecosystem. This remains a space where Union Bank desires to maintain a leading position.
“For the rest of H1 2022, we will continue to focus on driving productivity, mining targeted opportunities across regions and optimising our digital platforms to deliver improved customer service and acquisition.
Independent