Banking Briefs
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UNION Bank of Nigeria Plc has recorded a drop in revenue and profit for the year 2015. The bank reported gross earnings of N117.2 billion for the year ended December 31, 2015, down 14 percent from N135.9 billion in 2014. Net interest income rose by 7.0 percent from N52.1 billion to N55.7 billion. But impairment charges soared by 106 percent from N4.8 billion to N9.9 billion.
Consequently, profit before tax, PBT, fell by 47.5 percent from N27.7 billion to N14.5 billion, while profit after tax, PAT, fell by 49.7 percent to N14 billion from N26.8 billion in 2015. According to the bank, securities trading contributed 4.3 percent of gross earnings compared with two per cent in 2014. Expenses went down two percent to N56 billion as against N57.2 billion in 2014.
Net loan book was up 15 percent from N302 billion to N349 billion, reflecting increased customer confidence. Customer deposits improved by 12 percent from N507 billion to N349 billion in the year under review.
Commenting on the results, Emeka Emuwa, chief executive officer, Union Bank, said, “2015 was a challenging year across board, with significant operational and economic headwinds. Notwithstanding the difficult operating environment, Union Bank maintained its focus on business and transformation initiatives, which yielded desired results. Our gross earnings, excluding one-time gain on sale of subsidiaries, are up by 11 percent compared to 2014. With the launch of a re-energised brand identity and a retail model focused on customer needs, we increased our customer deposits by 12 percent year-on-year.”
According to him, the bank’s simpler and smarter banking solutions have enabled it to make strides in customer service delivery, which has reflected in independent industry surveys. “We continue to strengthen our e-banking platforms as we acquire new customers and migrate existing ones to these platforms, realising increased gains in revenues and reducing service costs,” he said.
Emuwa said with the operating environment expected to remain challenging, Union Bank remains focused on delivering quality financial services to our customers and value to all stakeholders. “We believe we are well positioned to take advantage of opportunities in emerging sectors of the economy as well as deepen our stronghold in key geographies around the country.”
— Apr 18, 2016 @ 01:00 GMT
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