Union Bank Posts Slight Rise in Half-year Profit

THISDAY - - MARKET NEWS - Goddy Egene and Nosa Alekhuo­gie

Union Bank of Nige­ria Plc re­ported a mar­ginal in­crease in profit for the half year ended June 30, 2017.

Ac­cord­ing to the re­sults, the fi­nan­cial in­sti­tu­tion ended the H1 with profit be­fore tax of N9.5 bil­lion, show­ing a min­i­mal growth of seven per cent com­pared with N8.9 bil­lion in 2016. Profit after tax also rose slightly by five per cent from N8.8 bil­lion to N9.2 bil­lion.

The re­sults also showed that the bank recorded gross earn­ings of N73.7 bil­lion, show­ing a growth of 23 per cent from N60 bil­lion in the cor­re­spond­ing pe­riod of 2016. In­ter­est in­come was boosted by naira de­val­u­a­tion-fu­eled for­eign cur­rency loan book to hit N58.3 bil­lion, up from N44.3 bil­lion.

Net in­ter­est in­come rose 19 per cent to N26.3 bil­lion, from N22.2 bil­lion, while non-in­ter­est rev­enue fell marginally by two per cent from N15.7 bil­lion to N15.4 bil­lion. Cus­tomer de­posits rose 15 per cent due to grow­ing con­fi­dence in the bank to hit N759 bil­lion as at June 30, up from N658 bil­lion as De­cem­ber 31, 2016. Im­pair­ment charge fell by 39 per cent from N8.8 bil­lion to N5.4 bil­lion.

In his com­ments on the re­sults, Chief Ex­ec­u­tive Of­fi­cer of Union Bank of Nige­ria, Mr. Emeka Emuwa said: “As our cen­te­nary cel­e­bra­tions con­tinue and with the launch of ourN50 bil­lion rights is­sue in the sec­ond half of the year, 2017 will re­main a very busy year for the bank. With our clear fo­cus on en­hanc­ing the op­er­a­tional ef­fi­ciency of the fran­chise, gross earn­ings grew by 23 per cent in the first half of the year to N73.7 bil­lion, from N60.1 bil­lion in H1 2016. In a chal­lenged econ­omy, the group de­liv­ered PBT of N9.5 bil­lion, a six growth over the cor­re­spond­ing pe­riod in 2016.”

Ac­cord­ing to him, in the sec­ond half of the year, their fo­cus will cen­tre on the rights is­sue launch, adding “we will re­main nim­ble to take ad­van­tage of emerg­ing op­por­tu­ni­ties and while im­prov­ing on service de­liv­ery to our cus­tomers.”

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