One of Nigeria’s oldest financial institutions, Union Bank Nigeria Plc has recorded a profit before tax of N15.6 billion for its unaudited financial statement for the period ended September 30, 2019, Q3’19 representing a growth of five per cent from N14.9 billion recorded in the corresponding period of 2018.
In its financial statement sent to the Nigerian Stock Exchange, its gross earnings was down by four per cent to ₦117.2 billion from N122.2 billion in Q3’18, a situation attributed to a decrease in average earning assets. The Bank’s interest income was down by two per cent to N90.0 billion from N91.5 billion in Q3’18; Net interest income after impairment up by 6 per cent to N44.3 billion from N42.0 billion in Q3’18, driven by the impact of collections on impaired facilities.
Other financial highlights show that the non-interest income was down by 12 per cent to ₦27.1billion from ₦30.7billion in Q3’18 driven by reduced market volatility in 2019 which had an impact on trading income. Cash Recoveries was up 114 per cent to N8.4billion from N3.9billion in Q3’18. The customer deposits were up to four per cent to ₦892.9billion from ₦857.6billion, reflecting the Bank’s continuing acquisition of low-cost deposits driven by strengthened brand affinity.
Commenting on the results, Emeka Emuwa, CEO said: “Profit Before Tax (PBT) for the Group is up to ₦15.6 billion, a five per cent increase over the same period in 2018. Our continued focus on consumer-centric service and product propositions is yielding solid results, contributing to a 28 per cent growth in our electronic channels fee income which is at ₦5.6 billion for the period. Our debt recovery drive continues to record successes with ₦8.4 billion of recoveries year to date.
In line with our stated business objectives, we are continuing to grow our asset book by creating quality risk assets in targeted sectors. This has led to a nine per cent growth in our loan portfolio to ₦566.5billion compared to N519.7billion at year-end 2018.
Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touchpoints.”
Also, the Bank’s Chief Financial Officer, Joe Mbulu said: “While we had a slight decline in Gross Earnings for the Group from ₦122.2 billion to ₦117.2billion in 2018, our efficiency initiatives, including the deployment of Robotic Process Automation as well as our cost optimisation programme, ensured we delivered four per cent growth in Profit After Tax (PAT), recording ₦15.2 billion compared to ₦14.7billion in the prior-year period.
Our operating expenses reduced by three per cent to ₦56.2 billion from ₦58.0 billion in nine months of 2018 and the Bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10 per cent to ₦9.5 billion from ₦8.7 billion for the corresponding period in 2018.