The confidence of customers and investors in Union Bank of Nigeria Plc seems to have been renewed given its improved financial performance for the nine months ended September 30, 2013.
According to the unaudited results, Union Bank of Nigeria Plc recorded gross earnings of N70.2 billion in 2013 as against N69.9 billion in the corresponding period of 2012.
Profit before tax for the bank for the period was N11.7 billion, while the group recorded profit before tax of N6.8 billion. Profit after tax was N12.4 billion for the bank and N7.6 billion for the group.
Customers' deposits, which show the level of customers’ confidence rose from N522billion to N536 billion. Further analysis of the bank’s results showed that loans and advances stood at N180.6 billion, up by 32 per cent from N137 billion in 2012.
The bank’s shareholders’ funds stood at N188.2 billion compared to N171.7 billion in 2012.
Speaking on the results, Chief Financial Officer of the bank, Oyinkan Adewale, said the bank fully absorbed the impact of exposures to discount houses and from non-banking subsidiaries, amounting to N4.075 billion in the review period.
"Union Bank’s core performance remains stable, and cost and efficiency initiatives will continue to support our profits, and fund our future investments in people, systems and infrastructure. One-off losses notwithstanding, the Union Bank Group stayed on course,” she said.
Also commenting, the Chief Executive Officer of Union Bank, Mr. Emeka Emuwa, said: “In the 3rd Quarter we continued to grow our core banking business, whilst transforming Union Bank into an institution with improved customer service, as the basis for our increased long-term profitability.
“As part of our core banking strategy and as announced, we are executing the divestment of our non-banking subsidiaries. While we improved the quality of the earnings from our core banking activities, Union Bank’s third quarter results were negatively impacted by the non-banking subsidiaries, particularly by losses in one of the subsidiaries and the effects of the recent developments in the discount house sector.
“As we develop our long-term strategy and optimise our cost structure, we will continue to reinvest our resources in our people, service delivery and infrastructure to attain our goal of becoming a leading institution in the Nigerian banking community.”