Union Bank Plc has announced a significant financial performance for the third quarter ending September 30, 2023, with a profit before tax (PBT) of N102.3 billion, reflecting a growth of 461.1 percent. The PBT was N18.2 billion in the corresponding period of 2022.
This notable achievement is attributed to a surge in gross earnings, which reached N309.1 billion, marking a 120 percent increase from N140.6 billion in 2022.
The financial highlights, filed with the Nigerian Exchange Limited (NGX), further showed a substantial rise in non-interest income, soaring to N144 billion from N28.3 billion in the same period of 2022, denoting an exceptional growth of 409 percent.
Net operating income after impairments also experienced a remarkable upswing by 121 percent, reaching N168.7 billion, compared to N76.3 billion in 2022.
Operating expenses increased by 14.2 percent to N66.4 billion, attributable to factors such as the inflationary environment, elevated power costs, and non-discretionary regulatory expenses.
Despite this, the bank demonstrated a robust performance with gross loans escalating by 38.1 percent to N1.38 trillion, and deposits witnessing a substantial 30 percent increase, reaching N1.93 trillion, a testament to the unwavering confidence of customers in the brand.
Commenting on the results, Mudassir Amray, Managing Director and CEO, expressed satisfaction with the strong financial results, citing a record-breaking revenue increase and impressive profitability figures.
Amray attributed these achievements to the bank’s strategic positioning of the balance sheet, effective liability generation, and the creation of responsible risk assets.
He emphasised that the growth in revenue and profitability exceeded expectations, underscoring the success of the wholesale banking strategy.
Non-interest income saw a phenomenal surge of 409 percent, reaching N144 billion.
The CEO highlighted the bank’s customer-centric approach, robust product portfolio, and innovative channels as key contributors to the 30 percent growth in customer deposits.
The bank remains well-capitalised with a Capital Adequacy Ratio of 15.4 percent, and non-performing loans remain below the regulatory limit at 3.7 percent.
Amray expressed optimism about the future, citing strong business fundamentals, a customer-centric approach, and a dedicated team that positions the bank to seize opportunities in the evolving market.
In addressing the merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion, with all regulatory requirements being fulfilled.
He believes that the merger will further strengthen the bank’s position and financial performance.
He said: “We remain optimistic about the future and are confident in our ability to sustain momentum. Our strong business fundamentals, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly evolving market.
“On the merger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalisation of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.
“Net operating income after impairments increased by 121 percent to N168.7 billion from N76.3 billion in September 2022 on the back of increased net revenue across our key business segments – corporate, retail and SME.
“Although our operating expenses increased by 14 percent to N66.4 billion compared to N58.1 billion in September 2023, we significantly improved our Cost to Income Ratio to 39.3 percent from 76.1 percent recorded in September 2022.
“This improvement was due to our effective management of costs, implementation of efficiency measures, optimisation opportunities, and strong revenue growth. The high inflationary environment, non-discretionary regulatory costs, and power costs mainly caused the increase in operating expenses.
“The Bank maintained a solid balance sheet position as Gross Loans grew strongly by 38.1 percent to N1.4 trillion compared to N.1.0 trillion in December 2022 and Customer deposits by 30 percent on the back of increased New-to-Bank customers, sales promotion, and product patronage.
“Given the unwavering confidence our customers have bestowed on us, we are confident of finishing the year strong. The Bank will continue to invest in technology to improve customer interactions across our channels and drive efficiency.”
