WED, APRIL. 19 2023-theGBJournal |Union Bank Plc has announced the release of its audited financial statements for the year ended 31st December 2022, which reflects strong financial performance despite macroeconomic headwinds.
Union Bank maintained consistent success due to the disciplined execution of its go-to-market strategy focused on deepening its core business while exploring new areas of opportunity to acquire, engage, and retain customers.
Bank Financial Highlights:
-Gross Earnings: up 19% to N208.2 billion (N175.0 billion in 2021), driven by strong growth in Net Interest Income.
-Net Interest Income: up 33% to N59.1 billion (N44.3 billion in 2021) driven by growth in earning assets.
-Net Operating Income after impairments: up 10% to N110 billion (N99.7 billion in 2021).
-Profit before Tax: up by 47% to N30.2 billion (N20.5 billion in 2021).
-Operating Expenses: marginally grew by 0.4% to N79.4 billion (N79.2 billion in 2021), reflecting tight cost control despite inflationary pressures.
-Gross Loans: up 11% at N1.0 trillion (N899.1 billion in December 2021) as they expand their lending to vital economic sectors of opportunity.
-Customer Deposits: up 9% at N1.48 trillion (N1.36 trillion in December 2021) as they expand their product base and digital channels.
Key Operational Highlights:
Retail & Digital Digital
-Channels & Platforms: Union Bank in 2022 invested in strengthening its technology architecture to drive key processes and serve more customers through digital and agent channels.
Consequently, active users on UnionMobile increased by 15.7% to 3.8 million users, and active UnionDirect Agents grew by 62.7% to 51,737.
This led to an increase in transaction value and volume on UnionMobile by 121% and 20.4%, respectively.
In 2022, Union Bank launched a chatbot that enabled real-time interactions with customers.
The chatbot has resolved 1.3 million customer complaints, demonstrating its effectiveness in streamlining the complaints resolution process.
In addition, they have made several other investments to enhance their customers’ experience, and as a result, seen significant improvements in the efficiency and efficacy of their customer complaints resolution.
The Bank grew its retail deposits by 14% to N675.8 billion from N594.9 billion in 2021. Some of the initiatives which contributed to this growth include: Save & Win Palli Promo
The bank rolled out the campaign’s second edition and rewarded over 611 customers with a combined sum of N55.5 million. The promo aims to generate low-cost deposits.
-Target Savings Campaign: In time for the World Cup, it rewarded 596 customers with N26 million in its flagship target savings campaign and closed out our five-year Target Savings Product (TSP) – UnionKorrect Qatar.
Ten customers were rewarded with cash prices of N5 million, and 375 customers with sports jerseys.
-Workplace Banking: Union Bank re-launched Workplace Banking, an exclusive proposition designed to offer employees convenience while providing support to achieve their goals and aspirations.
Commenting on the results, Mudassir Amray, MD/CEO, said: “Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers. On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.”
”In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well positioned to capitalize on market opportunities.
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