Union Bank Posts N5.4bn PBT in Q1 2019

• Union Bank Posts N5.4bn PBT in Q1 2019

Union Bank of Nigeria Plc recorded a moderate performance in the first quarter (Q1) of the year.

The lender grew its profit before tax to N5.4 billion in Q1 2019, slightly above the N5.3 billion posted in the same quarter of 2018.

The unaudited results released through the Nigerian Stock Exchange showed gross earnings declined by 5 percent to N37.7 billion in the quarter, down from N39.5 billion filed in Q1 2018.

Again, gross loans grew slightly from N473.5 billion to N494.9 billion, while customers’ deposit rose by one percent from N857.6 billion posted in the final quarter of 2018 to N857.6 billion in Q1 2019.

Speaking on the results, Mr. Emeka Emuwa, Chief Executive Officer of Union Bank, said the bank will be leveraging its platform for efficiency and seek to maximize value across all its facets in 2019.

“In a low yield environment, the group’s non-interest income growth compensated for the slowdown in interest income stemming from the optimisation of our loan portfolio in 2018. Consequently, Profit Before Tax (PBT) was maintained at N5.4 billion, consistent with Q1 2018. In line with our priorities, we recorded a material improvement of 819 per cent in loan recoveries with N2.8 billion recovered during the period. Our asset quality continues to improve, with non-performing loans (NPLs) down to 7.8 per cent from 8.7 per cent as at December 2018.

We are employing a multi-pronged approach focused on increasing revenue and optimising cost to ensure we deliver enhanced performance in 2019,” Emuwa said.

Also commenting on the results, the Chief Financial Officer of Union Bank, Mr. Joe Mbulu said: “The group’s resilience in a challenged environment is demonstrated in these first quarter numbers. While gross earnings declined by five per centto N37.7 billion from N39.5 billion in Q1 2018 due to loan book resolutions from the previous year, our non-interest income grew by 39 per cent from N7.8 billion to N10.8 billion driven by recoveries, credit-related fees and dividends from investments.”