Yemisi Izuora
Union Bank of Nigeria Plc.,has announced its audited results for the financial year ended 31st December 2015 showing that its Gross Earnings was up by 8 percent excluding gain on sale of subsidiaries,and gross earnings also soared by 11 percent.
Other highlights showed that Profit Before Tax for the Bank, ₦18.1bn (₦20.7bn in 2014 including gain on sale of subsidiaries); excluding gain on sale of subsidiaries*, ₦14.6bn (₦14.4bn in 2014).
· Profit Before Tax for the Group, ₦14.5bn (₦27.1bn in 2014 including gain on sale of subsidiaries); excluding gain on sale of subsidiaries*, up 24% to ₦14.9bn (₦12.0bn in
2014).
· 19% Interest Income growth; asset yield improved from 14.9% in 2014 to 16.4%, buoyed by securities trading income.
· Net Interest Income up 6% to ₦53.8bn (₦50.6bn in 2014).
· More diversified income streams:
o Securities trading contributed 4.3% of gross earnings vs 2% in 2014;
84% growth in E-business income, with almost 400% increase in Point of Sale
terminal fees and 134% increase in card fees.
· Expenses down 2% to ₦56.0bn (₦57.2bn in 2014). Notwithstanding continued investments in people, technology and infrastructure, downward trend in expenses achieved since 2012 from various cost transformation initiatives.
· Net Loan book up 15% to ₦349bn (₦302.4bn Dec 2014); cautious growth in target sectors of the economy.
· Customer Deposits up 12% to ₦569.1bn (₦507.4bn Dec 2014), compared to 6% growth achieved in 2014; reflecting increased customer confidence, a re-energised brand and success of new products.
Operational highlights in 2015:
· Launch of new identity re-energised the Union Bank brand and renewed customer interest.
· Expanded retail product portfolio with the successful introduction of UnionKorrect, a tiered savings product; and UnionGoal, a goal-oriented savings product.
· Focus on low-cost retail model has translated to significant revenue gains and customer acquisitions across electronic banking channels.
· 20% reduction in transaction processing times, following the upgrade of the core banking platform and state of the art data centre.
· Enhanced customer service affirmed through customer responses and improved ranking on independent industry surveys.
· Significant progress made in branch network transformation with 110 projects, including refurbishments, new builds, relocations and closures, completed in 2015.
· Appointment of Mr. Cyril Odu as Chairman of the Board of Directors, replacing Senator Udoma Udo Udoma. Mr. Odu’s appointment maintains continuity and ensures that the Bank will continue to execute its defined strategic initiatives over the next few years.
Commenting on the Union Bank’s 2015 results, Mr. Emeka Emuwa, 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 gross earnings, excluding one-time gain on sale of subsidiaries, are up by 11% compared to 2014. With the launch of a re-energised brand identity and a retail model focused on customer needs, we increased our customer deposits by 12% year-on-year.
Our simpler and smarter banking solutions have enabled us make strides in customer service delivery, which has reflected in independent industry surveys. We continue to strengthen our e-banking platforms as we acquire new customers and migrate existing ones to these platforms, realising increased gains in revenues and reducing service costs.
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.”