Union Bank records N6.5b first half pre-tax profit

Union Bank of Nigeria (UBN) Plc, recorded a pre-tax profit in the first half of this year as the group’s core banking operations helped to cushion somewhat unimpressive performance by other businesses.

The six-month interim report showed that while the core banking business segment recorded impressive double-digit growths, the non-interest and non-commercial banking businesses moderated the overall performance of the group.

The interim report and accounts of UBN for the period ended June 30, 2015 indicated that interest income, which rose by 18.3 per cent, helped to offset 11.2 per cent decline in non-interest income, leaving the top-line with a modest growth of 5.8 per cent. Pre and post tax profits rose marginally by 2.2 per cent and 1.9 per cent respectively.

Group gross earnings closed first half 2015 at N55.96 billion as against N52.88 billion recorded in comparable period of 2014. Interest income had risen from N36.6 billion in 2014 to N43.3 billion in 2015. Net interest income however declined from N13.87 billion to N12.31 billion. Group profit before tax inched up from N6.47 billion to N6.61 billion while profit after tax slightly increased from N6.34 billion to N6.46 billion. Earnings per share rose from 35 kobo to 38 kobo.

Managing director, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the successful implementation and migration to a new banking platform, Oracle FlexCube UBS, has provided a more stable operating environment for the bank to serve customers and process routine transactions quicker and more efficiently.

He noted that the group’s core banking business performed significantly better during the period as the bank’s stand alone gross earnings grew by 17 per cent while the bank delivered profit before tax of N10.2 billion, a 53 per cent increase over the same period in 2014.

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“Excluding the gain on the sale of subsidiaries, the bank delivered profit before tax of N6.7 billion, a 134 per cent increase over the first half of 2014. Deposits also continue to move in the right direction with 8.0 per cent growth when compared to December 2014. Non-volatile deposits alone grew by N55.7 billion during the first half of 2015,” Emuwa stated.

He assured that as more clarity emerges in the macro-economic environment in the second half, the group would consolidate the gains it made in the first half of the year; maintaining its focus on delivering operating efficiencies across its operations and proactively managing its risk while exploring emerging opportunities in the economy.

In her remarks, chief financial officer, Union Bank of Nigeria (UBN) Plc, Mrs. Oyinkan Adewale, said good performance across most financial metrics underscored the improving fundamentals and operational discipline of the bank.

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