Union Bank Grows Gross Earnings by 18% in Q1 2020

• Union Bank Grows Gross Earnings by 18% in Q1 2020

Union Bank of Nigeria Plc grew gross earnings by 18 percent in the first quarter (Q1) of 2020.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender grew gross earnings from N36.1 billion in Q1 2019 to N42.6 billion, while profit before tax expanded by 19 percent from N5.2 billion to N6.2 billion.

Gross loans rose to N661.1 billion during the period under review. Accordingly, customers’ deposits expanded to N897 billion with operational efficiency also improving.

Speaking on the performance, Mr. Emeka Emuwa, Chief Executive Officer, Union Bank, said: “Coming off a strong 2019, we maintained focus on executing our strategic priorities in Q1 2020, delivering double-digit growth across all our major income lines.

“The current COVID-19 pandemic presents daunting challenges for the global economy and consequently Nigeria and our 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.”

Also, Joe Mbulu, the Chief Financial Officer, explained that the 18 per cent increase in non-interest income was due to the N5 billion realised from trading income in Q1 2020 when compared to N2.2 billion in Q1 2019. He also said e-business income rose to N2.1 billion in Q1 2020 from N1.2 billion in Q1 2019 while revaluation gains of N2.7 billion was recorded during the period, also up from N0.1 billion filed in the same period of 2019.

He added that the bank’s operational efficiency expanded with cost-income ratio moderating from 76.9 per cent to 74.3 per cent as the bank’s cost optimisation programme improves.