Q3:2017: Union Bank gross earnings go up by 16%

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8 years ago

UNION Bank, in its unaudited results for the nine-months, ended 30th September 2017, records increase of 16 percent in its gross earnings.

The financial results released to the Nigerian Stock Exchange on Monday indicated that Union Bank gross earnings for the period closed at N109.5 billion compared to N94.8 billion last year; fuelled mostly by 22 percent increase in interest income. ·

For the period under review profit before tax of the bank went down marginally by two per cent to N13 billion, while Net Income went up by seven percent.

Also, Interest income went up 22 percent to N88.5 billion, driven mostly by 23 percent growth in average gross loans from N412 billion for Q3:2016 to N507 billion for Q3:2017.

Commenting on the Bank’s results for the nine-month period, Emeka Emuwa, Chief Executive Officer said the bank remained encouraged by the results of its customer acquisition strategy, as customers continue to respond to our targeted market offerings and increased brand awareness.

“Following the debut of a new advertising campaign to support the launch of Union Bank’s new digital platform, including our revamped mobile banking app and *826#, our SMS banking platform. Customer deposits are up 17 percent from December 2016 to close the period at N767.9 billion, with Group Gross Earnings at N109.5 billion, reflecting a 16 percent growth compared to the period,” he said.

Speaking further on the numbers, Chief Financial Officer, Oyinkan Adewale said: “The Group’s net interest income after impairments improved significantly by 16 percent from N35.2 billion to N40.9 billion compared to the period ended 30 September 2016.

“Non-interest income is down by six percent compared to 9M 2016, which included one-time revaluation gains. With our continued focus on early problem recognition and prudent provisioning, our coverage ratio has strengthened to 203 percent as at 30 September 2017, from 182 percent as at December 2016.