BY BAMIDELE FAMOOFO
Union Bank has sustained steady performance as a result of increased customer engagement from an enhanced operating and go-to-market model and gains derived from our digital penetration strategy.
Financial highlights of the bank showed that gross earnings was up 8.9% to N175.0billion from N160.7billion in FY 2020, driven by strong noninterest income.
Non-interest income increased by 26.7% to N55.7bn, compared with N44.0billion in FY 2020 driven by significant increases in debt recoveries.
Net operating income after impairments dipped by 3.6% to N99.7bn as against N103.4billion in FY
2020. Profit before tax was down by 19.3% to N20.5bilion, compared to N25.4billion in 2020 while Operating expenses marginally grew by 1.5% to N79.1bn (₦78.0bn in FY 2020), reflecting tight cost control despite inflationary pressures.
Gross loans were up 22% at N899.1bn as against N736.7billion in Dec 2020 as the bank expands its lending to key economic sectors of opportunity. Customer deposits increased by 20.4% at N1.4trillion from N1.1 trillion in Dec 2020.
Commenting on the results, Emeka Okonkwo, CEO said: “Following an enhancement to our operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions, we are increasing our customer engagement and product penetration which is translating into higher customer revenues across geographies. On the back of this, the Bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme. For the full year, our gross earnings grew by 8.9% from N161bn to N175bn, while our net operating income after impairments dropped by 3.6% to N99.7bn from N103.4bn. Interest income grew by 1% as our earnings asset base expanded with a growing loan book. We continued our strong growth in non-interest income through a combination of aggressive recoveries, which grew 119% in the period, from N7.2bn to N15.9bn and further growth in fee and commission income (33%) and e-business (26%). These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels. Total active UnionMobile users now stands at 3.3 million, up 20% while our Union360 customer base grew by 22% to 26,400. In 2022, the Bank will continue to focus on broadening and deepening the strong foundations we have built, while enhancing our digital delivery platforms and service propositions to customers. We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability. As we turn a new chapter for our Bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future.”
