BREAKING NEWS, Business

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The Union Bank Group has recorded a growth rate of 34 percent from N63.9 billion in 2013 to N85.7 billion in 2014 largely due to one-time events and launches smarter banking center in Abuja

THE Union Bank is poised to render smart banking services to its customers. It has launched a new smarter banking center in Abuja in line with the banks efforts to build a simpler, smarter banking center on June 16. The management and board of the directors also opened the new center at the Silverbird Galleria in Abuja on the margins of its annual general meeting in Abuja. The smarter banking center is designed for technology savvy customers who want quick, easy, on-the-go banking, according to a statement the bank made available to Realnews on Wednesday, June 24.  The bank is expected to roll out three more centers in Lagos, before the end of June and more than 10 centers around the country before the end of the year.

Meanwhile, Shareholders of Union Bank of Nigeria Plc. approved the bank’s 2014 annual accounts and board recommendations at the 46th annual general meeting, AGM, of the bank held in Abuja. Addressing shareholders at AGM, Senator Udoma Udo Udoma, chairman of the Board of directors, highlighted significant achievements of the bank in 2014, which included: embedding a new business model focused on retail, commercial and corporate banking; strengthening organisation’s capabilities through a culture enhancement programme and upskilling of employees; and the establishment of a central processing center. According to Senator Udoma: “These achievements have positioned us on the right trajectory to ensure sustained revenue and profit growth, which will ultimately grow shareholder value, and thus adequately position UBN to regain its position as one of the leading banks in Nigeria”.

Emeka Emuwa, group managing director, while reviewing the bank’s 2014 performance, said, “The bank experienced 28 percent growth in net operating income from N60.9 billion in 2013 to N77.9 billion, while the group experienced 34 percent growth from N63.9 billion in 2013 to N85.7 billion in 2014 largely due to one-time events. The Bank grew profit-before-tax by N16 billion, closing the year with N20.7 billion, up from N4.2 billion in 2013, while the Group closed at N27.7 billion, up from N3.8 billion in 2013. While one-off gains of N6.3 billion from sale of subsidiaries added significant boost to profits, we were able to grow profitability from our core operations, combined with our effective cost management initiatives which stabilized our costs, and kept expenses flat year-on-year. This led to a cost-to-income ratio improvement from 74 percent in 2013 to 68 percent in 2014 for the Bank, and from 75 percent to 63 percent for the group (net of restructuring costs).” In conclusion, Emuwa said, “Our balance sheet remains strong with total assets of the bank and group closing the year at N920.9 billion and N1, 009 billion respectively. We are pleased to say that we improved shareholder value by increasing return on average equity from 3 percent  in 2013 to 10 percent in 2014 for the Bank and from 2 percent in 2013 to 13 percent in 2014 for the Group. Earnings per Share improved from 30 kobo to 121 kobo in 2014 for the Bank and from 37 kobo to 157 kobo in 2014 for the Group.”

Emuwa also highlighted Union Bank’s priorities for 2015 which includes, proactive risk management; driving low cost deposits by leveraging new business model; effective cost management and proactive capital management to ensure regulatory compliance and effective utilization of capital.

— June 24, 2015 @ 10.00 GMT

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