Union Bank of Nigeria has declared a Profit Before Tax (PBT) of N12.1 billion for the half-year ended June 30, 2019.
The profit represented a growth of four per cent when compared with N11.7 billion achieved in the comparative period of 2018.
The financial result, which was announced on the Nigerian Stock Exchange (NSE) the official website showed that its gross earnings stood at N76 billion, against N83.3 billion posted half year 2018, indicating a decline of nine per cent due to a decrease in average earning assets.
Interest income was down by eight per cent to N57.3bn against N62.2 billion in the corresponding period of 2018.
Also, net interest income after impairment grew by three per cent to N30.5 billion against N29.7 billion in H1 2018, supported by an aggressive drive-in collections.
Net operating income was slightly down by two per cent to N49.6 billion compared with N50.9 billion in the previous period of 2018.
Commenting on the results, the bank’s Chief Executive Officer, Mr Emeka Emuwa said it was able to deliver growth in profit before tax in spite of the realities of a challenging economic environment.
“Notwithstanding the realities of operating in a challenging economic environment, the Group delivered a per cent growth in Profit Before Tax to N12.1 billion from N11.7 billion in H1 2018.
“To sustain growth in earnings, we remained steadfast in our commitment to delivering value and first-class customer experience to all our customers.
“We have developed a concerted and clear plan to increase our risk assets with our loan book growing by eight per cent to ₦563.0 billion compared to year-end 2018.
“The ability to take on more risk is hinged on our robust risk management and debt recovery processes working in sync which led to recoveries of over N5 billion in the period.
“We successfully closed our Series 3, 10 years N30 billion bonds in June, as part of our ₦100 billion debt capital programme.
“This series, which was once again fully subscribed, is the largest 10-year bond issued by a Nigerian corporate to date.
“This further reinforces the confidence of the investor community in Union Bank. With this new injection of tier 2 capital, we are well-positioned to deliver on our growth strategy and priorities.
“Looking ahead, we will continue to focus on opportunities to deliver our simpler, smarter banking promise to our customers while improving internal operational efficiencies which will translate to enhanced shareholder value”, Emuwa said
