Union Bank received $25 million agricultural funding

• Union Bank received $25 million in agricultural funding
• Union Bank’s PBT increased by 14% to N18.2 billion

According to a joint statement from the Union Bank of Nigeria and the Africa Agriculture and Trade Investment Fund, the bank has obtained a $25 million lending line from AATIF to increase the scope of its agricultural operations.

Union Bank stated it anchored its food and agri-finance strategy around the promotion of local food processing in support of the Nigerian government’s initiative to cut down on food imports and ultimately create a sustainable market for local farmers to sell their agricultural products.

According to a release, Union Bank has a long history in the agricultural industry and has since developed to become one of Nigeria’s top five agricultural financiers, demonstrating the industry’s tremendous potential for growth and innovation in the future.

The bank focuses on key value chains in a variety of industries, including rice, chicken, dairy, cassava, maize, and soybeans. It seeks to provide technical assistance and money that is specifically tailored to the needs of the many actors along each value chain.

According to the announcement, the money from AATIF would aid Union Bank in growing and reaching out to Nigerian agribusinesses. An increase in funding for agricultural firms as well as the creation and use of novel agri-product offers were linked to the projected benefit.

Union Bank’s PBT increased by 14% to N18.2 billion

Union Bank’s PBT increased by 14% to N18.2 billion. The consolidated unaudited financial report for the nine months that ended on September 30, 2022, has been released by Union Bank of Nigeria Plc.

According to the financial report, the bank’s profit before tax for the reviewed period increased 14% to N18.2 billion from N15.9 billion during the same time last year.

In a similar line, profit after tax increased by 14.2% to N17.3 billion from N15.2 billion in 2021. The bank cited increased net interest revenue as the reason for the rise in profits.

When compared to the first nine months of 2021, the gross earnings increased by 12.4% to N140.6 billion (from N125.2 billion). Because of increasing interest income, net operating income before impairments increased from N71.2 billion in the same time in 2021 to N76.3 billion in the current year.

However, non-interest revenue decreased by 32.7% to N28.3 billion from N42 billion in the corresponding period of 2021, a decrease of 32.7%. Low recoveries were the cause of the drop. Operating expenses increased by 5.2% to N58.1 billion in the first nine months of 2021 from N55.2 billion as a result of higher non-discretionary regulatory costs, software costs, and electricity prices.

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