Union Bank posts N19.9bn after-tax profit, declares dividend for the first time in 12 years

Union Bank of Nigeria Plc has reported a 10% increase in its Profit After Tax (PAT) for Full Year 2019 and consequently declared a dividend for the first time since 2008.

These and other details are contained in Union Bank of Nigeria Plc Annual Report 31 December 2019, posted on the website of the Nigerian Stock Exchange (NSE) website Thursday.

The lender’s Gross Earnings leapt by 14% from N145.5 billion at FY2018 to N166.5 billion at FY2019.

Union Bank’s Net Interest Income inched up to N52.5 billion at FY2019 from N51.6 billion in the corresponding period of 2018, signalling a 2% rise.

Non-Interest Income expanded by 25% from N34.3 billion at FY2018 to N42.8 billion in the same period of 2019.

The Pre-Tax Profit of Union Bank grew to N20.353 billion at FY2019 up from N18.453 billion at FY2018, translating to a 10% increase.

Profit After Tax similarly grew by 10%, climbing up from N18.093 billion at FY2018 to N19.875 billion at FY2019.

Union Bank’s Total Assets enlarged by 28% from N1.464 trillion at FY2018 to N1.872 trillion in the relative period of last year.

Earnings Per Share (EPS) leapt to N0.83 at FY2019 from N0.59 at FY2018, signalling a 40.7% growth.

In view of its 2019 financial performance, the Board of Directors of Union Bank is proposing a dividend of N0.25 per share subject to the approval of shareholders at the next Annual General Meeting (AGM).

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Emeka Emuwa, the Union Bank chief said “the Bank’s strong overall performance has paved the way for a critical milestone. With the approval of the Central Bank of Nigeria, the Board of Directors will recommend a dividend payment to shareholders for the first time in over a decade.

“Returning value to our shareholders has been at the core of Union Bank’s transformation and continuous drive to become a leading financial institution in Nigeria.”

With outstanding shares of about 29.121 billion, Union Bank’s market capitalisation currently stands at over N199.477 billion.

Union Bank’s Price to Earnings (PE) Ratio is 7.64% and it closed trade on the floor of the NSE yesterday at N7.10 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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