By Peter Egwuatu
Union Bank Plc has recorded a profit before tax of N12.3 billion in its unaudited financial statements for the period ended 30th June, 2022, (H1’22), representing a rise by 6.7% from N11.5 billion in the corresponding period of 2021.
The Bank’s financial results sent to the Nigerian Exchange Limited, NGX show that gross earnings went up 12.5% to 87.4billion from N77.7billion in HI’21 driven by higher earning assets.
Net operating income after impairments went up 2.6% to N49.6billion from N48.3billion in H1’21, driven by higher trading income.
Non-interest income was down 24.1% to N21.1billion from N27.7 billion in H1’21 due to foreign exchange revaluation loss. The Operating expenses were up 1.3% to N37.3billion from N36.8 billion, an outcome of higher non-discretionary regulatory costs and power costs.
Commenting on the results, Mudassir Amray, CEO said: “Following the successful acquisition of majority shares of the Bank by Titan Trust Bank, we are now focused on strengthening the core business and improving operational efficiencies across board.
In parallel, we are going full throttle on integrating the two banks to form a ‘stronger Union’ positioned to deliver value to all stakeholders, leveraging technology and digital innovation. The integration is expected to be completed by the end of the third quarter.”
Continuing, he said: “In H1’22, compared to H1’21, the Bank’s gross earnings, Net Interest Income and Profit Before Tax grew by 12.5%, 41%, and 6.7% respectively.
Since taking the reins as Chief Executive Officer as at June 2nd, 2022, I am confident that the Bank has all the necessary ingredients to be a tier 1 bank.
As we drive towards a seamless integration in the second half of the year, we remain committed to achieving our business objectives. We are excited about exploiting the synergies from the newly expanded franchise post integration.”
Speaking on the H1’22 numbers, Chief Financial Officer, Joe Mbulu said: “We have continued to deliver improved efficiency, enabling growth in PBT, which grew by 6.7% to N12.3billion.
Net Interest Income increased by 41% during the period, driven by interest income which grew from N47.7billion to N64.3billion during H1”22. The rise in interest income was underpinned by growth in loans/advances which rose by 24%. Despite inflationary pressures, our strong cost management model continues to yield dividends. Operating expenses grew slightly by only 1.3% to N37.3billion from N36.3billion.
Deposits increased by 7% to N1.5 trillion while our risk assets dropped slightly by 0.4% to N889.1billion from N895.3billion as at year-end 2021.
Our capital and liquidity positions remained above regulatory levels, with CAR at 16.4% and liquidity ratio of 39.2% further demonstrating the capacity of our strong balance sheet. Our non-performing loan ratio ended at 4.4%. Furthermore, our coverage ratio remains robust at 140.7%.”