Finance

Union Bank’s transformation to Titan Trust Bank inching closer 

Union Bank’s Transformation To Titan Trust Bank Inching Closer

The transformation of Union Bank into Titan Trust is now in the process of final regulatory approvals, Daily Independent learnt. 

In December 2021, Union Bank’s core investors – Union Global Partners Limited and Atlas Mara – notified the Board of Directors of a Share Sale and Purchase Agreement (SSPA) reached with Titan Trust Bank (“TTB”) for the proposed sale of 89.39 per cent of Union Bank’s issued share capital. 

The agreement comes a decade after the initial investment by the core investors in 2012 and will effectively transfer majority ownership of the bank to TTB. The transaction is in the process of final regulatory approvals.

Consequently, the transaction also triggers the hive-out of Union Bank UK (UBUK) which was approved by shareholders in an Extra-ordinary General Meeting on 29th March, 2022. 

This allows the bank transition from an international to a national focus, facilitating a more flexible and efficient deployment of capital towards strategic opportunities identified within sectors of the Nigerian economy. 

Meanwhile, Union Bank, in its audited financial statements for the year ended 31st December 2021, displayed resilient revenue growth in the face of macroeconomic headwinds. 

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The bank sustained steady performance as a result of increased customer engagement from an enhanced operating and go-to-market model and gains derived from its digital penetration strategy. 

Financial highlights show a gross earning of N175 billion from N180.7 billion recorded in the corresponding period of 2020, representing an improvement of 8.9 per cent, driven by strong non-interest income. 

Non-interest income rose by 26.7 per cent to N55.7 billion from N44.0 billion in 2020 driven by significant increases in debt recoveries while profit before tax went down by 19.3 per cent to N20.5 billion from N25.4 billion in the comparable period of 2020 

Commenting on the results, Emeka Okonkwo, CEO of Union Bank Plc said: “Following an enhancement to our operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions, we are increasing our customer engagement and product penetration which is translating into higher customer revenues across geographies. 

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“On the back of this, the Bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme. 

“For the full year, our gross earnings grew by 8.9 per cent from N161 billion to N175 billion, while our net operating income after impairments dropped by 3.6 per cent to N99.7 billion from N103.4 billion. Interest income grew by 1 per cent as our earnings asset base expanded with a growing loan book. 

“We continued our strong growth in non-interest income through a combination of aggressive recoveries, which grew 119 per cent in the period, from N7.2 billion to N15.9 billion and further growth in fee and commission income (33%) and e-business (26%). These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels. Total active UnionMobile users now stands at 3.3 million, up 20 per cent while our Union360 customer base grew by 22 per cent to 26,400. 

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“In 2022, the bank will continue to focus on broadening and deepening the strong foundations we have built, while enhancing our digital delivery platforms and service propositions to customers. 

“We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability. 

“As we turn a new chapter for our bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future.”

Independent

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