Union Bank records N42.9bn gross earnings

Union Bank of Nigeria Plc has released its unaudited financial result for the first quarter ended March 2022, reporting gross earnings of N42.9 billion. The amount represents 18 per cent compared with N36.4 billion reported in the same period of 2021. The growth was driven by strong earning assets from on lending to key sectors in the Nigerian economy. Net interest income after impairment up by 27 per cent to N12.9 billion from N10.1 billion in the comparable period of last year. Net interest income down by 19.1 per cent to N11.5 billion against N14.7 billion reported in 2021.

The bank posted profit before tax of N6.4 billion from N7.0 billion, representing drop of 8.8 per cent. The group operating expenses rose by 3.8 per cent to N18 billion from N17.3 billion recorded in the comparative period of 2021.

Commenting on the results, Chief Executive Officer (CEO), Mr Emeka Okonkwo 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 percent 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 first quarter of 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 Union Direct, 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 first half 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. ”Speaking on the first quarter of 2022 numbers, Chief Financial Officer Joe Mbulu said:“The Bank continued resilience in our Q1 2022 results. Headline Gross Earnings increased by 18 per cent to ^42.9 billion from ^36.4 billion in Q1 2021.

Net interest income after impairment charges grew by 27 per cent driven by 41 per cent increase in Interest Income to N31.4 billion from N22.2 billion in Q1 2021. Non-Interest Income declined by 19.1 per cent from ^14.2 billion to ^11.4 billion driven by higher foreign currency revaluation loss.