04-06-2019, 01:08 PM
Union Bank records 33% increase in PBT to N18.5bn
Union Bank of Nigeria (UBN) has reported a 33 per cent increase in Profit Before Tax (PBT)) to N18.5billion in the financial year ended December 31, 2018, as against N13.9billion declared in 2017.
The lender, in its result and accounts submitted to The Nigerian Stock Exchange (NSE), reported 11 per cent decline in earnings to N145billion from N168billion in 2017 due to eight per cent drop in loan book. The lender thus reported a 16 per cent increase in Net Revenue After Impairments to N93.5billion compared to N80.64billion in 2017 From the balance sheet position, UBN’s Customer Deposits rose by seven per cent to N857.6billion as against N802.4billion as at December 2017.
Meanwhile, UBN’s Non-Performing Loan Ratio (Bank): down to 8.1per cent from 20.8per cent as of December 2017 Speaking on the Group’s results for the year, the MD/CEO Emeka Emuwa said, “Our priorities in 2018 were three-pronged; enhancing our productivity across board; tightening up our loan portfolio (especially resolving key large exposures which drove NPLs up significantly at the end of 2017), and optimizing the Bank’s capital and funding base. “I am pleased to report that we made significant strides in each focus area. Notwithstanding a depressed economic environment and a challenging operating landscape, our efforts to optimise productivity delivered results. “Union Bank’s Group Profit Before Tax (PBT) is up 33per cent to N18.5 billion in 2018 from N13.9 billion in 2017.
As consumer confidence in the brand continues to grow, customer deposits also continue to grow, up 7.3per cent to N857.6 billion in 2018 from N802.4 billion in 2017. “Our Net Revenues After Impairments are also up 16per cent to N93.5billion compared to N80.6bn in 2017 with significant contribution from growth in retail transaction volumes across our channels. “Through an aggressive focus on recoveries and recognising fully provisioned loans on our books, we successfully reduced the Bank’s NPL ratio, which is now down to 8.1per cent in 2018 from 20.8per cent at the end of 2017, in line with guidance provided at the start of the year. In 2019, we will continue to maintain focus on recoveries while prudently rebuilding our loan book and maintaining a conservative risk profile.
“On the funding side, we successfully initiated the first tranche of our oversubscribed local currency bond programme to raise N13.5 billion. We are encouraged by the market and investor community response to the bond issue and subsequent listing on the FMDQ platform as we continue our drive to optimize the Bank’s capital and funding structure.
“In 2019, we will double-down on our productivity efforts to deliver our financial targets. “We are harnessing synergies across our business segments to ensure we maximize opportunities across entire value chains while centralising key business and operational functions for better efficiency, and prioritizing customer experience across all our touch points. “We are also pleased to be introducing our women-focused initiative, αlpHer, which will provide a portfolio of financial and non-financial services to women across customer segments in Nigeria. “Lastly, we have commenced the Long-Term Efficiency Acceleration Programme (LEAP), a comprehensive transformation effort to embed cost discipline across the Bank.
We believe LEAP will deliver significant cost savings in 2019 and entrench a culture of efficiency across all areas of the Bank.” The Chief Financial Officer, Joe Mbulu, commenting further on the 2018 results said, “Gross revenues declined by 11per cent to N145.5 billion in 2018 from N163.8 billion in the previous year as a direct consequence of the loan book clean-up and resolution of key exposures.
“Notwithstanding significant investments to execute our strategy including expanding our agency banking footprint and aligning compensation with market for our entry to mid-level employees(which increased operating expenses by 12per cent from N66.7billion in 2017 to N75.0billion as at December 2018), we are pleased that our core business delivered a 33per cent growth to our topline PBT.
Through LEAP, we will ensure that operating expenses in 2019 remain within the Bank’s targets. “Our Return on Tangible Equity (ROTE) improved to 9.6per cent from 6.2per cent in 2017 demonstrating long-term shareholder value enhancement. “In addition to our successful fundraising activities during the year, we will further support future growth and creation of high-quality risk assets in 2019 through a Tier II capital raise. This will boost our Capital Adequacy Ratio, which is currently at 16.4per cent and remains above the regulatory limit.”
Read more at: https://dailytimes.ng/union-bank-records...o-n18-5bn/
Union Bank of Nigeria (UBN) has reported a 33 per cent increase in Profit Before Tax (PBT)) to N18.5billion in the financial year ended December 31, 2018, as against N13.9billion declared in 2017.
The lender, in its result and accounts submitted to The Nigerian Stock Exchange (NSE), reported 11 per cent decline in earnings to N145billion from N168billion in 2017 due to eight per cent drop in loan book. The lender thus reported a 16 per cent increase in Net Revenue After Impairments to N93.5billion compared to N80.64billion in 2017 From the balance sheet position, UBN’s Customer Deposits rose by seven per cent to N857.6billion as against N802.4billion as at December 2017.
Meanwhile, UBN’s Non-Performing Loan Ratio (Bank): down to 8.1per cent from 20.8per cent as of December 2017 Speaking on the Group’s results for the year, the MD/CEO Emeka Emuwa said, “Our priorities in 2018 were three-pronged; enhancing our productivity across board; tightening up our loan portfolio (especially resolving key large exposures which drove NPLs up significantly at the end of 2017), and optimizing the Bank’s capital and funding base. “I am pleased to report that we made significant strides in each focus area. Notwithstanding a depressed economic environment and a challenging operating landscape, our efforts to optimise productivity delivered results. “Union Bank’s Group Profit Before Tax (PBT) is up 33per cent to N18.5 billion in 2018 from N13.9 billion in 2017.
As consumer confidence in the brand continues to grow, customer deposits also continue to grow, up 7.3per cent to N857.6 billion in 2018 from N802.4 billion in 2017. “Our Net Revenues After Impairments are also up 16per cent to N93.5billion compared to N80.6bn in 2017 with significant contribution from growth in retail transaction volumes across our channels. “Through an aggressive focus on recoveries and recognising fully provisioned loans on our books, we successfully reduced the Bank’s NPL ratio, which is now down to 8.1per cent in 2018 from 20.8per cent at the end of 2017, in line with guidance provided at the start of the year. In 2019, we will continue to maintain focus on recoveries while prudently rebuilding our loan book and maintaining a conservative risk profile.
“On the funding side, we successfully initiated the first tranche of our oversubscribed local currency bond programme to raise N13.5 billion. We are encouraged by the market and investor community response to the bond issue and subsequent listing on the FMDQ platform as we continue our drive to optimize the Bank’s capital and funding structure.
“In 2019, we will double-down on our productivity efforts to deliver our financial targets. “We are harnessing synergies across our business segments to ensure we maximize opportunities across entire value chains while centralising key business and operational functions for better efficiency, and prioritizing customer experience across all our touch points. “We are also pleased to be introducing our women-focused initiative, αlpHer, which will provide a portfolio of financial and non-financial services to women across customer segments in Nigeria. “Lastly, we have commenced the Long-Term Efficiency Acceleration Programme (LEAP), a comprehensive transformation effort to embed cost discipline across the Bank.
We believe LEAP will deliver significant cost savings in 2019 and entrench a culture of efficiency across all areas of the Bank.” The Chief Financial Officer, Joe Mbulu, commenting further on the 2018 results said, “Gross revenues declined by 11per cent to N145.5 billion in 2018 from N163.8 billion in the previous year as a direct consequence of the loan book clean-up and resolution of key exposures.
“Notwithstanding significant investments to execute our strategy including expanding our agency banking footprint and aligning compensation with market for our entry to mid-level employees(which increased operating expenses by 12per cent from N66.7billion in 2017 to N75.0billion as at December 2018), we are pleased that our core business delivered a 33per cent growth to our topline PBT.
Through LEAP, we will ensure that operating expenses in 2019 remain within the Bank’s targets. “Our Return on Tangible Equity (ROTE) improved to 9.6per cent from 6.2per cent in 2017 demonstrating long-term shareholder value enhancement. “In addition to our successful fundraising activities during the year, we will further support future growth and creation of high-quality risk assets in 2019 through a Tier II capital raise. This will boost our Capital Adequacy Ratio, which is currently at 16.4per cent and remains above the regulatory limit.”
Read more at: https://dailytimes.ng/union-bank-records...o-n18-5bn/