By NKIRUKA NNOROM

Union Bank of Nigeria, UBN Plc, weekend, released its first quarter unaudited financial statement for period ended March 31, 2014 with significant decline in the key performance indicators.

The result prepared in accordance with International Financial Reporting Standard, IFRS, requirement, filed with the Nigerian Stock Exchange, NSE, showed 54 percent drop in profit before tax to N5.0 billion from N7.7 billion recorded in corresponding period in 2013.

Also, the profit after tax for the period nose-dived by almost the same margin, declining by 56 percent from N7.8 billion in 2013 to N5.0 billion in the review period.

The gross earnings at N26.0 billion, was13.08 percent decrease from N29.4 billion in corresponding period in 2013, while the interest income stood at N20.7 billion as against N18.8 billion in 2014.

The bank’s total assets went down to N958.6 billion compared to N997.3 billion reported in the corresponding period in 2013. The total asset position as December 31, 2013 stood at n1 trillion.

Cash and cash equivalents was down 29.74 percent to N101.1 billion from N143.9 billion in March 2013, the customer deposits also declined to N466.4 billion from N482.7 billion, representing … percent decrease.

However, the bank’s shareholders’ equity grew to N197.3 billion as against N192.2 billion in December 2013, showing an increase of 2.65 percent. Net loans and advances to customers grew by 29 percent, rising to N220.5 billion from N170.7 billion as at n March 2013.

The bank also achieved some level of efficiency in its operations as the operating expenses decreased to N14.7 billion, a 3.29 percent increase over N15.2 billion achieved in first quarter in 2013.

The bank said in statement that it is currently undertaking branch optimization programme, saying that 13 branches are being refit, while another 53 will be completed before the end of the year.

It added that previously upgraded branches are already yielding financial upsides and positive Net Promoter Scores (NPS), adding that divestment of four portfolio companies are almost completed and awaiting regulatory approvals.

Commenting, Group Managing Director/ Chief Executive of Union Bank, Emeka Emuwa, said: “Union Bank has maintained its profitability and is delivering against key operational metrics supporting our strategy.