Union Bank of Nigeria Plc, one of Nigeria’s long-standing and most respected financial institutions has released its audited results for the financial year ended December 31, 2015.
The Financial highlights for the twelve month period show gross earnings for the bank rose 8 percent; excluding gain on sale of subsidiaries, gross earnings were up 11 percent.
Gross Earnings rose to N118.4billion from N109.8 in 2014.
Profit before Tax for the Bank stood at N18.1bn (N20.7bn in 2014 including gain on sale of subsidiaries); excluding gain on sale of subsidiaries, N14.6bn (N14.4bnin 2014).
Profit before Tax for the Group, N14.5bn (N27.1bn in 2014 including gain on sale of subsidiaries); excluding gain on sale of subsidiaries, up 24 percent to N14.9bn (N12.0bn in 2014).
Interest Income grew by 19 percent; asset yield improved from14.9 percent in 2014 to 16.4 percent, buoyed by securities trading income.
Net Interest Income was up 6 percent to N53.8bn (N50.6bn in 2014).
Securities trading contributed 4.3 percent of gross earnings compared to 2 percent in 2014; there was also an 84 percent growth in E-business income, with almost 400 percent increase in Point of Sale terminal fees and 134 percent increase in card fees.
Notwithstanding continued investments in people, technology and infrastructure, downward trend in expenses was achieved since 2012 from various cost transformation initiatives.
Net Loan book was up 15 percent to N349bn (N302.4bn Dec 2014), customer Deposits up 12 percent to N569.1bn (N507.4bn Dec 2014), compared to 6 percent growth achieved in 2014; reflecting increased customer confidence, a re-energised brand and success of new products.
Commenting on the Union Bank’s 2015 results, Emeka Emuwa, the bank’s Chief Executive Officer said: “2015 was a challenging year across board, with significant operational and economic headwinds. Notwithstanding the difficult operating environment, Union Bank maintained its focus on business and transformation initiatives, which yielded desired results. Our simpler and smarter banking solutions have enabled us make strides in customer service delivery, which has reflected in independent industry surveys. Looking ahead, with the operating environment expected to remain challenging, Union Bank remains focused on delivering quality financial services to our customers and value to all stakeholders. We believe we are well positioned to take advantage of opportunities in emerging sectors of the economy as well as deepen our stronghold in key geographies around the country.”
In the words of Chief Financial Officer, Oyinkan Adewale: “The 2015 numbers reinforce the success of the Bank’s transformation. We are particularly pleased with the improvement in asset yield from 14.9 percent to 16.4 percent, and our success in holding operating costs down for the fourth successive year, while making investments in technology, people and processes. We continued to deliver more value from our assets; interest income grew by 19 percent compared to an 8 percent growth in total assets. We are now a leaner and more efficient group, focused on core commercial banking.”