Union Bank Plc has released its unaudited financial results for the nine months of 2022, ended 30th September.
The bank recorded 14% growth in profit before tax and 12.7% growth in customer deposits
Other key highlights are as follows:
● Profit before tax: up 14% to ₦18.2bn (₦16.0bn in 9M 2021)
● Gross earnings: up 12.4% to ₦140.6bn (₦125.2bn in 9M 2021) driven by higher earning assets.
● Net operating income after impairments: up 7.3% to ₦76.3bn (₦71.2bn in 9M 2021) driven by higher interest income.
● Non-interest income: down 32.7% to ₦28.3bn (₦42bn in 9M 2021) due to lower recoveries
● Operating expenses: up 5.2% to ₦58.1bn (₦55.2bn in 9M 2021) an outcome of higher non-discretionary regulatory costs, software expenses and power costs.
● Customer deposits: up 12.7% at ₦1.53 trillion (₦1.36 trillion in Dec 2021)
● Gross loans: up 10.1% at ₦990.3bn (₦899.1bn in Dec 2021)
● Non-performing loans ratio: down 50bps at 4.2% (4.7% as at 9M 2021)
Commenting on the results, Mudassir Amray, CEO said: “We had a good third-quarter performance, with strong growth in profits supported by additional net interest income. Our strategy remains on track, with good delivery in all areas.
“This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising lending to key sectors.
“Our performance reflects the continued impact of our strategy, with gathering revenue momentum. The progress that we have made means we are in a strong position. In 9M 2022, compared to 9M 2021, the Bank’s Gross Earnings, Net Interest Income and Profit Before Tax grew by 12.4%, 59.8%, and 14% respectively.
“As we look towards the rest of the year, we retain a cautious outlook on the external risk environment believing that the lows of recent quarters are behind us. This confidence, together with our focus on building on our efficiency, expanded synergies and robust cost control, will put the Bank in a stronger position’’
Speaking on the 9M 2022 numbers, Chief Financial Officer, Joe Mbulu said: “Notwithstanding our deposit book growth, our focus on optimizing our funding costs have started yielding results which has driven profitability from gross revenues to the bottom line, with higher net revenue from funds (after impairment) in the period.
“Interest Income grew by 37% to N109.3 billion as a result of higher earning assets while Non-Interest Income (NII) declined by 33% to N28.3bn compared to prior year driven by decline in recoveries by 64.5% (to N4.6 billion) during the period.
“We grew our loan book by 10% from N899.1 billion as at December 2021 to N990.1billion as at the end of Q3 2022. Customer deposits increased by 12.7% to N1.5 trillion.
“Our non-performing loan ratio as at 9M 2022 was 4.2% while our coverage ratio remains robust at 143.2%.
“Operating Expenses grew by only 5% from N55.2 billion as at 9M 2021 to N58 billion due to inflationary pressures. Consequently, our cost to income ratio decreased from 77.6% to 76.1% as at September 2022. The Bank remains adequately capitalized to pursue its growth ambitions with Capital Adequacy Ratio (CAR) at 15.3%.”