Union Bank records 25% increase in profit

Union Bank Plc says it recorded a 25% increase in profit for the half year ended June 2018.

Unaudited half-year results released by the company on Thursday showed that it recorded positive numbers across major parameters.

The bank recorded a 25% increase in profit after tax (N11.5 billion).

Retained earnings also closed in the green for the first time since 2012

Gross earnings rose by 16% to stand at N83.3 billion from the N72.1 billion recorded in first half of 2017 driven by a 10% increase in interest income and 37% increase in non-interest.

Oyinkan Adewale, the bank’s chief financial officer, said the bank has been able to eliminate a major impediment to the payment of dividends.

“With low-cost deposits now accounting for 70% of total deposits, up from 67% as at December 2017, our cost of funds fell in H1 2018,” he said.

“The group’s, operating expenses for the period were affected by some one-off items, as well as a combined 25% increase in NDIC premium and AMCON levy, adding that for the rest of the year the bank will intensify its cost rationalization initiatives.”

Commenting on the results, Emeka Emuwa, the chief executive officer of the bank said: “In the first half of the year, we have continued to see positive results from our efficiency and productivity drive. Across all our business lines, we witnessed a strong underlying performance, translating into improved earnings.

“We continue to focus on the recovery of non-performing loans. With the resolution in Q2 2018 of the large real estate exposure which was impaired in December 2017, the group NPL ratio is down to 10.8% from 14.9% at 31 March 2018 and 19.8% at December 31, 2017.”