Union Bank posts N12 profit in Q2

Union Bank Group has declared a profit before tax of N12.1bn for the half year ended June 30, 2010. This tripled the growth on its profit when compared to N3.56bn performance in the first quarter of this year.

According to the result, other performance indica-tors of the bank were equally impressive as gross earnings rose to N66.9bn, represen-ting 100 per cent increase over N34.235bn that was recorded in the first quarter, 2010.

The half-year performance which market watchers have described as quite reassur-ing to investors of the bank, indicated significant improvement, not just in earnings but also in efficiency ratios. 

These are key to the rebound of financial institu-tions after the meltdown and the massive provisioning which led to loss of assets witnessed in 2009.

The management of the bank has assured that with the support of the Board, it is expected that the trend will continue for the rest of the financial year ended December 31, 2010.

Compared to the corres-ponding period of 2009, the bank’s interest expense dropped from N28.7bn to N21bn in half year, 2010 and operating expenses from N38.3bn to N37.3bn.

The report is also a veritable testament that the bank has regained massive customer confidence, with deposit liabilities rising to N858bn; comparing favour-ably to the N866bn that was the deposit position of the bank before CBN’s interven-tion on August 14, last year.

The management has demonstrated a deepening of the financial intermediation role of the bank and the tailoring of services to customers needs.

Significantly, this perfor-mance has been complimen-ted by improvement in risk management and control, marketing and business development, factors that have enhanced the bank’s income statement and efficiency ratios during the first and second quarters.

Recently the management had set its performance benchmark by adjusting its operations and human resources for optimal utili-zation and maximum contri-bution thereby fulfilling the promises made by the MD/CEO, Mrs. Funke Osibodu to clean up the books of the bank and reposition it as Nigeria’s dominant bank.