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

• Union Bank’s PBT increased by 14% to N18.2 billion
• Profit before tax
• Non-interest revenue

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.

READ MORE: UBA Revenue Increased by 23.3% to N608 billion in the Third Quarter of this 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.

When compared to December 2021, customer deposits increased by 12.7% to N1.53 trillion from N1.36 trillion, and gross loans increased by 10% to N990.3 billion from N899.1 billion. As of the first nine months of 2021, the bank’s non-performing loan ratio was 4.7%; it is now 4.2%.

The statements made

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

Joe Mbulu, the chief financial officer of Union Bank, commented on the financial outcome and said:

“Notwithstanding our deposit book growth, our focus on optimizing our funding costs has started yielding results that have driven profitability from gross revenues to the bottom line, with higher net revenue from funds (after impairment) in the period.

“Interest Income grew by 37% to N109.3 billion as a result of higher earning assets while Non-Interest Income (NII) declined by 33% to N28.3bn compared to the prior year driven by a decline in recoveries by 64.5% (to N4.6 billion) during the period.

“We grew our loan book by 10% from N899.1 billion as of December 2021 to N990.1 billion as at the end of Q3 2022. Customer deposits increased by 12.7% to N1.5 trillion. Our non-performing loan ratio as of 9M 2022 was 4.2% while our coverage ratio remains robust at 143.2%.

“Operating Expenses grew by only 5% from N55.2 billion as of 9M 2021 to N58 billion due to inflationary pressures. Consequently, our cost-to-income ratio decreased from 77.6% to 76.1% as of September 2022. The bank remains adequately capitalized to pursue its growth ambitions with Capital Adequacy Ratio (CAR) at 15.3%.”

Source: nairametrics.com