Union Bank Half Year Result Soars With N8.6bn Profit

Union Bank half year result soars with N8.6bn profit - marketingspace.com.ng
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Union Bank of Nigeria Plc has reported improved performance for the half year ended June 30, 2016 amidst the challenging operating environment. The unaudited results made available at the stock market yesterday showed that the group recorded gross earnings of N60.1 billion, showing an increase of eight per cent above the N55.4 billion in the corresponding period of 2015. Net interest income rose by 18 per cent from N26.3 billion to N30.9 billion, while non-interest income grew by 25 per cent from N12.6 billion to N15.7 billion in 2016.

Impairment charges went up by 100 per cent from N3.0 billion to N8.8 billion, while operating expenses was kept flat at N29.1 billion, compared with N29.3 billion in 2015.

The financial institution ended the period with a profit before tax of N8.6 billion, up by 21 per cent from N7.1 billion in 2015, while profit after tax rose by same margin to hit N8.4 billion in 2016, compared with N7.0 billion in 2015.

Customers’ deposits rose by seven per cent to N611.9 billion from N570.6 billion in December 31, 2015. Loans and advances jumped by 32 per cent to N514 billion as against N388.8 billion as at December 2015.

Commenting on the results, the Chief Executive Officer of Union Bank, Mr. Emeka Emuwa said:

“Our sustained focus on executing Union Bank’s strategic transformation objectives during the first half of 2016 has delivered growth in our core business, notwithstanding a difficult economic environment. The bank recorded nine year-on-year growth in core gross earnings, driven primarily by balance sheet optimisation. With the combination of an improved retail portfolio of product and service offerings, securities trading and efficient cost management, the bank was able to deliver N8.2 billion in core PBT, up 23 per cent when compared to N6.7bn in the same period in 2015.”

Emuwa said the bank’s core business remains resilient in these challenging times and they maintain their commitment to delivering value to all our stakeholders.

“We also remain confident that our profit retention strategy will adequately support the bank’s medium term growth objectives, and continue to strengthen our risk management to mitigate risk and losses,” he said.