Union Bank of Nigeria (UBN) Plc posted a 33% increase in Profit Before Tax (PBT) and Net Profit of N18.1 billion in its financial statement for the year ended December 31, 2018.
Union bank annual report which was released on the Nigerian Stock Exchange (NSE), showed the bank’s performance for year end December 2018 as detailed below.
- Total Asset increased marginally by 0.59% from N1.456 trillion in 2017 to N1.464 trillion in 2018 financial year.
- Customer’s Deposit rose by 7% from N803 billion to N858 billion in 2018 year end.
- Loans and Advances however dropped by 7% to N520 billion from N561 billion in 2017 financial year end in line with dropped across the industry and from results released thus far.
- Profit After Tax rose by 39% from N13 billion in 2017 to N18.1 billion in 2018 as seen in the union bank annual report.
- Profit Before Tax also rose by 33% to N18.5 billion from N13.9 billion as at December 2017.
- Gross earning dipped by 11% to N145 billion from N168 billion in 2017 due to eight per cent drop in loan book.
- Net revenue after impairments for the group rose by 16% to N93.5 billion compared to N80.64 billion in 2017.
- The bank’s NPL ratio down to 8% from 21% as at December 2017.
- Operating expense grew by 12% from N66.7 billion in 2017 to N75 billion as at December 2018.
Mr. Emeka Emuwa, the bank’s MD/CEO while speaking on the union bank annual report and results for the year said, “Our priorities in 2018 were three pronged; enhancing our productivity across board; tightening up our loan portfolio, especially resolving key large exposures which drove non-performing loans (NPLs) up significantly at the end of 2017 and optimizing the bank’s capital and funding base.”
Chief Financial Officer, Joe Mbulu, commenting further on the 2018 results, attributed the decline in the gross earning to consequence of the loan book clean-up and resolution of key exposures. “Notwithstanding significant investments to execute our strategy including expanding our agency banking footprint and aligning compensation with market for our entry to mid-level employees, we are pleased that our core business delivered a 33 percent growth to our top-line PBT,” he said.
Here is how Union bank has performed between 2014 and 2018
- The bank has consistently increased its Asset base from N1 trillion in 2014 to N1.46 trillion in 2018 representing 45.2% rise in 5 years. The smallest growth was in 2018 with a less than 1% rise.
- Union bank deposit from customers has also been on the rise in the last 5 years growing from N528 billion in 2014 to N828 billion in 2018, representing a 62.5% growth.
- The bank also grew it Loans to customers yearly up until 2017 before a drop of 7% in 2018. The figure however grew by 66.1% between 2014 and 2018.
- The bank shareholder’s funds however did not grow significantly with a marginal growth of 1.8% in 5 years and a significant drop of over 33% between 2017 and 2018.
- The bank dropped significantly in PBT performance between 2014 and 2018 as it slides by about 33% in 5 years. This was caused by a more than 50% drop in the bank’s PBT in 2015 followed by an epileptic growth till 2018 financial year end.
Union bank annual report
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