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Union Bank Grows Full Year Profit by 217%

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Union Bank of Nigeria Plc (UBN) Wednesday reported an increase of  217 per cent in profit after tax (PAT) for the year ended December 31, 2013.  UBN  recorded  gross earnings of N121 billion, up marginally by four per cent from N117 billion in 2012. 

Profit before tax grew by 31 per cent from N2.9 billion in 2012 to N3.8 billion, while  PAT soared by 217 per cent from N1.2 billion to N3.8 billion.

An analysis of the bank’s balance sheet showed that gross loans and advances to customers rose by 30 per cent from N192 billion to N249 billion, while  shareholders’ funds grew from N173 billion to N192 billion. 

Capital adequacy ratio stood at 25 per cent, just as non-performing loan  ratio stood at 5.8 per cent  down from 17.3 per cent in 2012. UBN ended the year with a liquidity ratio of  76 per cent, compared with 30 per cent Central Bank of Nigeria (CBN) statutory  minimum requirement). Earnings  per share was 32 kobo.

The Group Managing Director and Chief Executive of Union Bank,  Emeka Emuwa saidthe bank pushed forward on a number of critical internal and external restructuring initiatives, in respect of which they were  charged approximately N11 billion.

“I am pleased to report that, notwithstanding these significant exceptional costs, Union Bank remained profitable. This signals to us that our transformation programme put the Bank on the right trajectory,” he said.

Also commenting on the results, Executive Director and Chief Financial Officer of Union Bank, Mrs. Oyinkan Adewale said, “In 2013, we focused on improving our efficiency as a bank. We identified key areas where we could rationalise and optimise cost and we launched several initiatives. In the coming years, we expect these initiatives to translate into significant gains for the Bank.

She noted that in addition, by divesting profitably from its  non-bank subsidiaries, UBN  significantly improve its capital adequacy ratio and the Group’s risk profile, while focusing on our core banking business.

“Having cleaned up the legacy risk assets portfolio, we expect significantly reduced impairment going forward,” Adewale said.

Article Credit: Thisdaylive

Updated 1 Year ago

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