Union Bank Records Strong Financial Performance Despite Economic Challenges

Union Bank of Nigeria Plc has released its audited financial statements for the year ended 31st December 2022, which shows that the bank has recorded significant growth in key financial indicators despite the macroeconomic challenges that impacted the Nigerian financial sector in 2022.

The bank’s disciplined execution of its go-to-market strategy, focused on deepening its core business and exploring new areas of opportunity to acquire, engage, and retain customers, has helped it maintain consistent success.

According to the bank’s audited financial statement obtained by Investors King, its gross earnings increased by 19% to ₦208.2 billion in 2022, driven by strong growth in net interest income.

The bank’s net interest income increased by 33% to ₦59.1 billion in 2022, driven by growth in earning assets. Union Bank’s profit before tax increased by 47% to ₦30.2 billion in 2022, compared to ₦20.5 billion in 2021.

The bank’s gross loans also increased by 11% to ₦1.0 trillion in 2022, as the bank expanded its lending to vital economic sectors of opportunity.

Despite inflationary pressures, Union Bank has shown tight cost control as its operating expenses marginally grew by 0.4% to ₦79.4 billion in 2022, compared to ₦79.2 billion in 2021.

This achievement reflects the bank’s efforts to ensure operational efficiency and cost optimization.

Furthermore, the bank’s customer deposits increased by 9% to ₦1.48 trillion in 2022, as the bank expanded its product base and digital channels.

The bank’s focus on customer-centric innovation has helped it deliver new and improved products and services to meet customers’ evolving needs.

Commenting on the results, Mudassir Amray, MD/CEO, said: “Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers.

“On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.

“The Bank’s gross earnings grew by 19% to N208.1 billion from N175 billion in 2021. Whilst non-interest income declined marginally by 1.0%. Net interest income after impairment grew 26.1% to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1% from N20.5 billion recorded in 2021.

“In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and wellpositioned to capitalise on market opportunities.

“As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them.

“Our financial performance is a testament to the disciplined execution of our plans for the year and resilience against all odds. While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage.

“Operating expenses increased marginally by 0.43% due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5% from 79.4% in 2021 due to cost-control measures implemented during the year.

“The Bank’s balance sheet remains strong, with total assets increasing by 8.8% to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5% from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8% to N 1.48 trillion.

“While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our NPL ratio reduced from 4.3% to 4.0%, and the capital adequacy ratio remained within regulatory limits at 14.4%.”