Union Bank of Nigeria Plc, for the first quarter of the year 2020 has increased its profit before tax by 19 per cent to N6.2 billion as against N5.2 billion recorded in Q1 2019.
According to the bank’s financial statement submitted to the Nigerian Stock Exchange (NSE), on Wednesday, gross earnings of the bank also grew by 18 per cent to N42.6 billion as against N36.1 billion recorded in Q1 2019; driven by an increase in earning assets.
Further analyses indicated that Interest income of the bank went up by 18 per cent to N29.7 billion for the period under review, while Net interest income before impairment surged by 38 per cent to N14.8 billion; driven by the growth in treasury assets.
Commenting on the results, Emeka Emuwa, the Chief Executive Officer of Union Bank said: “Coming off a strong 2019, we maintained a focus on executing our strategic priorities in Q1 2020, delivering double-digit growth across all our major income lines.
“Profit Before Tax (PBT) grew by 19 per cent to N6.2 billion from N5.2 billion in Q1 2019. Our Gross Earnings are also up by 18 per cent to N42.6 billion from N36.1 billion in Q1 2019. Our platforms and channels continue to drive our performance as Non-Interest Income increased by 18 per cent from N10.9 billion in Q1 2019 to N12.9 billion for the period with e-business fees contributing N2.1 billion, a 71 per cent growth compared to Q1 2019.
ALSO READ: Bayelsa govt sends husband, children of coronavirus patient to 14-day isolation
Emuwa added that the current COVID-19 pandemic presents daunting challenges for the global economy and consequently Nigeria and business. “Our focus in the short term is on ensuring business continuity through our strong operational risk framework; ensuring the health and well-being of our employees by adopting stringent health and safety protocols at our operating branches and offices; and supporting our customers through the crisis.
We have reinforced our digital platforms to continue delivering value and convenience to our customers while aligning our focus areas to where opportunities emerge during and post COVID-19. We will continue to support the government, private entities and our communities in the fight against COVID-19.”
Speaking on the Q1 2020 numbers, Chief Financial Officer, Joe Mbulu said:
“The 18 per cent YoY growth in Non-Interest Income was driven by the stronger trading income of N5 billion compared to N2.2 billion in Q1 2019, e-business income of N2.1 billion compared to N1.2 billion in Q1 2019 and revaluation gains of N2.7 billion compared to N0.1 billion in the same period last year.
Our operational efficiency also improved with Cost-Income Ratio declining YoY to 74.3 per cent from 76.9 per cent in Q1 2019 as our cost optimisation programme continues to yield results. We have also kept NPL ratios flat currently at 5.9 per cent compared to 5.8 per cent as of December 2019.
While the current COVID-19 pandemic has dimmed the global economy outlook for the year, we will leverage our strong capital position with Capital Adequacy Ratio (CAR) at 19.9 per cent and our solid risk management framework towards the delivery of our 2020 objectives.”
and then