Banking Sector

Union Bank Reports N6.9 Billion Profit in Q1 2021

Published

3 years ago

May 4, 2021

Union Bank Plc, a leading financial institution in Nigeria, grew profit before tax by 12 percent from N6.2 billion filed in the first quarter (Q1) of 2020 to N6.9 billion in the first quarter of 2021.

In the unaudited financial statements released for the quarter, the bank’s gross earnings declined by 15 percent from N42.6 billion recorded in Q1 2020 to N36.4 billion in Q1 2021.

Similarly, operating expenses were down by 4 percent to N17.3 billion in Q1 2021, down from N18 billion in Q1 2020.

Union Bank Financial Highlights

● Profit before tax: up 12% to ₦6.9bn (₦6.2bn in Q1 2020); driven by higher non-interest income and lower operating expenses.
● Gross earnings: down 15% to ₦36.4bn (₦42.6bn in Q1 2020) driven by lower interest environment in the Nigeria financial sector
● Net operating income after impairments: relatively flat at ₦24.3bn (₦24.2bn in Q1 2020).
● Non-interest income: up 10% to ₦14.1bn (₦12.9bn in Q1 2020); driven by successful debt recovery efforts.
● Operating expenses: down 4% to ₦17.3bn (₦18bn in Q1 2020); an outcome of sustained cost optimisation efforts
● Gross loans: up 3% at ₦757.4bn (₦736.7bn in Dec 2020)
● Customer deposits: flat at ₦1.1trillion (₦1.1 trillion in Dec 2020)
● Non-performing loans ratio: flat at 4%

Speaking on the Performance, Emeka Okonkwo, CEO said: “I’m pleased to be able to provide the first set of quarterly results under my tenure as CEO following a smooth transition in leadership. Despite the challenging economic climate, our Bank has maintained a steady performance that we can build on for the rest of the year.

“The Bank has responded well to the challenges in the market since the onset of the pandemic. Our overall efforts in Q1 delivered a 12% growth in PBT. We are particularly pleased with the consistent growth we are seeing in transaction volumes which validates our digital-led strategy and is delivering returns. By prioritizing personalized solutions and enabling self-service, we are attracting transaction-backed deposits and enhancing customer knowledge to better manage risk.

“Our performance was also supported by strong debt recovery efforts which contributed to growth in non-interest income, enabling us to maintain net operating income at N24.3bn despite the significant reductions on net interest margins across the industry since Q1 2020.”

“Going forward, we will continue to focus on accelerating digitization to drive customer acquisitions and transactions. Our business and operating model are being enhanced to deliver on revenue and product penetration targets across geographies and segments where we have identified opportunities.

Speaking on the Q1 2021 numbers, Chief Financial Officer, Joe Mbulu said: “We have continued to deliver improved efficiency, enabling growth in PBT, which grew by 12% to ₦6.9bn. We are continuing to partly mitigate the impact of a lower interest margin and high inflation environment by maintaining a focus on cost which drove a reduction in operating expenses by 3.4% from N18bn to N17.3bn and an enhanced cost-income ratio of 71.4%, from 74.3% in Q1 2020.

“The 10% growth in non-interest income recorded during the quarter was supported by strong growth in recoveries as well as an improvement in net income from other financial instruments which rose by 109% to ₦3bn from ₦1.4bn.

“Our capital position remains strong, with a capital adequacy ratio (CAR) of 17.3%, while our non-performing loan ratio remains good at 4%. These are critical enablers to deliver our 2021 strategic priorities.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

1 day ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

1 week ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

1 week ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.