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Business News of Thursday, 19 November 2020

Source: Naira Metrics

Union Bank Nigeria Plc posts N15.9 billion profit in 9M 2020, up by 2%

Union Bank Nigeria Plc has reported a Profit Before Tax (PAT) of N15.9 billion for the period ended September 30, 2020, according to its recent financials sent to the Nigerian Stock Exchange market.

The latest profit posted by the firm indicates a gain of 2% from the figures posted by the firm in the corresponding period last year. Other key highlights of the report are:

Pre-tax profit increased to N15.9 billion, indicating an increase of +2% Y-o-Y. Interest income increased to N85.4 billion, up by +1% Y-o-Y. Revenue grew to N118.8 billion, indicating a gain of +6% Y-o-Y. This increase is largely due to a boost in earning assets. Non-interest income largely boosted by growth in trading income and asset revaluation gains increased to N33.4 billion, up by +23% Y-o-Y. Net interest income before impairment increased to N41.7 billion, with a gain of +15% Y-o-Y. Net operating income boosted to N69.3 billion, gaining +1% Y-o-Y. Operating expenses increased to N53.4 billion, up by +0.4% Y-o-Y. The marginal increase is due to factors such as currency depreciation, inflationary pressures and unplanned Covid-19 related expenses. Customer deposits increased in the 9 months period to N1.1 trillion, up 28% from N886.3 billion recorded as at December 2019.

What they are saying

Commenting on the result, the CEO of Union Bank Nigeria Plc, Emeka Emuwa, said, “Notwithstanding the realities of a tougher operating environment arising from the ripple effects of the Covid-19 pandemic, the Bank delivered a 6% growth in gross earnings from 111.9 billion in 9M 2019 to 118.8 billion in 9M 2020. In addition, net interest income before impairment rose by 15% to 41.7 billion, while non-interest income grew by 23% to 33.4 billion.

“We reached a major milestone as our customer deposits crossed the 1 trillion mark this quarter, growing by 28% to 1.1 trillion compared to 886.3 billion at the end of 2019. This reflects increasing customer loyalty and our intense retail drive. Our customer acquisition strategy has been reinforced by the versatility of our digital platforms and channels which continue to drive customer satisfaction.”

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