Union Bank has reported a profit before tax (PBT) of N15.5 billion on gross earnings of ₦163.8 billion for the financial year ended December 31, 2017.
And despite making a profit after tax of N14.6 billion, a February 2018 regulation by Central Bank of Nigeria (CBN) stopping banks with low capital base and high non-performing loans from paying dividends ensured that shareholders went home without any dividend payout.
Union Bank’s annual report showed that the bank has a non-performing loan ratio of 19.78 per cent of a total N517.103 billion at the end of the financial year under review.
Chairman of the Bank, Cyril Odu presented the Group’s report to shareholders at the 49th Annual General Meeting which held in Abuja on Tuesday.
Other highlights of the bank’s financial performance in 2017 show that interest income grew by 25 per cent to ₦124.5 billion from ₦99.7 billion in 2016, as a result of the impact of naira devaluation on the foreign currency denominated loan book, government securities yields and loan book repricing.
Non-interest revenue also moved up by 31 per cent to ₦39.3 billon from ₦29.9 billion in 2016, driven by improved fee and commission income, trading income and a more effective debt recovery machine.
Operating expenses increased by five per cent to ₦65.1 billion from ₦62.0 billion in 2016 due to inflationary pressures and the impact of devaluation on technology and network investments.
Gross loans grew by five per cent to ₦560.7 billion compared to ₦535.8 billion in 2016, while customer deposits rose by 22 per cent to ₦802.4 billion (from ₦658.4 billion in 2016) continuing its upward trajectory since 2016.
The growth was led by investments in customer-led products, recently upgraded alternate channels, along with a strengthened brand.
