Union Bank declares N13.3b pre-tax profit in Q3

Union Bank of Nigeria (UBN) Plc has declared N13.3 Billion profit before tax for the nine months ended September 30, 2016, indicating 27 per cent growth.
     According to the result, gross earnings rose by 12 per cent to N93.43 billion in the third quarter 2016 as against N83.72 billion recorded in comparable period of 2015.
   Net interest income improved by 19 per cent from N40.27 billion to N48.07 billion. Non-interest income also grew by 35 per cent from N16.67 billion to N22.47 billion.
 Also, Profit before tax rose by 27 per cent to N13.3 billion in third quarter 2016 compared with N9.6 billion in third quarter 2015 while  After taxes, net profit also rose from N9.34 billion to N13.01 billion.   
 Within the period, group total balance sheet size expanded to N1.22 trillion,  compared with N1.05 trillion recorded by the close of the year ended December 31, 2015. Gross loans and advances also rose within the nine-month period by 37 per cent from N388.8 billion in December 2015 to N534.4 billion by September 2016.
  Customers deposit improved from N570.6 billion to N631.9 billion while Shareholders’ funds also increased from N238.6 billion to N253.1 billion.
  Commenting on results, the chief executive officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa, said: “We are encouraged by this performance which comes in the face of a recessionary environment, increased impairments and headwinds in our trade business due to scarcity of foreign exchange. Our steady effort to build a low cost, customer centric retail business over the past 18 months is demonstrating results and continues to win us a new, growing retail customer base.”
  He assured that while the operating environment remains a challenge, the bank will continue to focus on executing its strategy, defending its loan book and adhering to prudent risk management principles.
Chief financial officer, Union Bank of Nigeria (UBN) Plc, Oyinkan Adewale noted that the bank had continued to manage its cost of funds, which resulted in 14 per cent reduction in interest expenses year-on-year, notwithstanding growth in customer deposits and increase in medium term borrowings.
  He said: “Our cost optimisation initiatives continue to yield good results; cost-to-income ratio has improved to 62 per cent from 70 per cent in the previous year. Cost-to-income is buoyed by income and operating expenses in line with expectations in spite of inflationary and devaluation pressures. We will continue to implement our cost discipline initiatives across the Bank to stay within our cost targets.”