By Peter Egwuatu
Union Bank of Nigeria Plc has recorded 8.9% growth in its gross earnings to N175 billion for the financial year ended December 31, 2021 from N160.7 billion recorded in the corresponding period 2020.
The details of the results released on the Nigerian Exchange Limited, NGX yesterday show that Non-interest income rose 26.7% to N55.7 billion from N44 billion in 2020 driven by significant increases in debt recoveries, Net operating income after impairments down 3.6% to N99.7 billion from N103.4 billion in 2020, Profit before tax down by 19.3% to N20.5 billion from N25.4 billion in 2020.
Other performance indicators show that operating expenses marginally grew by 1.5% to N79.1 billion from N78.0 billion in 2020, reflecting tight cost control despite inflationary pressures.
Gross loans rose by 22% to N899.1 billion from N736.7 billion in December 2020 as the bank expanded its lending to key economic sectors of opportunity.
Customer deposits also rose by 20.4% at N1.4 trillion from N1.1 trillion in December 2020 as the bank continues to expand its product base and digital channels.
Commenting on the results, Emeka Okonkwo, Chief Executive Officer, Union Bank said: “Following an enhancement to our operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions, we are increasing our customer engagement and product penetration which is translating into higher customer revenues across geographies.
On the back of this, the bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme”.