LAGOS, NOVEMBER 2, 2018 – Union Bank of Nigeria Plc has said its profit after tax for the third quarter of 2018 grew by 18 per cent to N14.7bn from N12.4bn in the corresponding period of 2017.
The bank, in its financial statement, which was made available to the Nigerian Stock Exchange, said its profit before tax increased by 14 per cent to N14.9bn from N13bn in Q3 2017.
An analysis of the statement showed that the bank’s gross loans increased to N588.9bn from N560.7bn in December 2017, while its customer deposits increased to N882.2bn from N802.4bn in December 2017.
The bank said its foreign currency deposits (excluding the impact of devaluation) increased by 37 per cent, alongside a growing low-cost deposit book.
The Managing Director/Chief Executive Officer, Union Bank, Emeka Emuwa, said the increase in PAT was as a result of strong treasury trading income, intensified recoveries and a 144 per cent growth in alternate channel revenues.
He said the bank’s non-performing loan ratio dropped to 9.8 per cent from 10.8 per cent in the first half of the year.
Emuwa stated that the bank was leveraging positive investor confidence to conclude a successful inaugural issuance of Series I and II bonds under its newly-registered N100bn bond programme.
“We will remain focused on driving and enhancing productivity across the bank to ensure we deliver on our expectations for the year,” he added.
The Chief Financial Officer, Union Bank, Joe Mbulu, said the bank’s focus on optimising funding costs drove its profitability from gross revenues to the bottom line, with higher net revenue from funds (after impairment) in the period.
He said the bank also benefitted from opportunistic treasury trading income realised in the period.
According to him, the bank remains adequately capitalised to pursue its growth ambitions, with its capital adequacy ratio at 16.8 per cent.
