UNION BANK OF NIGERIA PLC Union Bank of Nigeria Plc.
Group Unaudited Financial Statements for the Quarter Ended March 31, 2023
LAGOS, NIGERIA - 28th April 2022: Union Bank Plc has released its unaudited financial statements for the period ended 31st March 2023.
Bank Financial Highlights:
- Gross Earnings: up 51% to ₦65.94 billion (₦43.80 billion in Q1 2022), driven by strong earning assets from on-lending to critical sectors in the Nigerian economy.
- Net Operating Income after Impairments: up 34% to ₦32.65 billion (₦24.32 billion in Q1 2022).
- Non-InterestIncome: up 122% to ₦25.43 billion (₦11.45 billion in Q1 2022).
- Profit before Tax: up 102% to ₦12.81 billion (₦6.35 billion in 2022).
- Operating Expenses: up by 10% to ₦19.83 billion (₦17.97 billion in Q1 2022), an outcome of the inflationary environment, increase in power cost and increase in non- discretionary regulatory cost.
- Gross Loans: up 1.5% at ₦1.015 trillion (₦1.001 trillion in December 2022).
- Customer Deposits: up 10.3% at ₦1.63 trillion (₦1.48 trillion in December 2022), reflecting the growing customers' confidence in the brand.
Commenting on the results, Mudassir Amray, MD/CEO, said:
"A great start to 2023 with encouraging Q1 results. The strategy we put in place is working. We still have a long way to go, as we have ambitious targets. However, we are committed to developing the right balance between convenience and security.
Q1 saw increased New-To-Bank customers across different regions. We entered strategic partnerships to deliver value to our clients. Additionally, we have seen a substantial increase of 50% in our Gross Earnings (Q1 2022 vs Q1 2023) and Profit Before Tax (PBT) of ₦12.81 billion, representing 102% growth compared to ₦6.35 billion in Q1 2022.
Growth in non-interest income of 122% to ₦25.43 billion compared to ₦11.45 billion in Q1 is on the back of high-value episodic transactions. In addition, our capital position remains well capitalised, with a capital adequacy ratio (CAR) of 15.6% as we continue to deepen our play in productive sectors of the Nigerian economy. Moreover, our non-performing loan remains below the regulatory limit at 4.5%.
I am thrilled about the initiatives that will help us be more productive and exceed our customers' expectations. We will relaunch products to boost customer adoption, intensify our
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cost optimisation programme and exploit the gains of strategic partnerships we have started to forge.
Additionally, we eagerly anticipate the merger of Union Bank of Nigeria and Titan Trust Bank, making us a more robust and innovative Bank."
Speaking on the Q1 2023 numbers, Chief Financial Officer Joe Mbulu said:
"We are delighted with our financial performance because it came on the backdrop of a slow first quarter, occasioned by the general elections, the pushback of the naira redesign policy and persistent macroeconomic headwinds.
Net operating income after impairments increased by 34% to ₦32.65 billion from ₦24.32 billion in Q1 2022 on the back of deepening revenue from our core business - corporate, SME and retail; whilst operating expenses increased by 10% to ₦19.83 billion against ₦17.97 billion in Q1 2022, majorly due to the high inflationary environment, increased power cost and increased in non-discretionary regulatory cost. Notwithstanding, our Cost to Income Ratio improved to 60.8% compared to 73.9% in Q1 2022 after implementing identified cost- efficiency initiatives.
The Bank continued to grow its loan book as gross loans went up by 1.5% to ₦1.01trillion compared to ₦.1.0 trillion in December 2022, whilst Customer deposits grew by 10.3% to ₦1.63 trillion from ₦1.48 trillion in Dec 2022, reflecting growth in customer acquisition and increased product uptake.
As we progress into the year, we will continue to leverage technology to improve our efficiency and drive our non-interest income. As a result, we are confident of delivering more value to our shareholders and outperforming our Q1 returns on equity and assets, which stood at 16.9% and 1.8%, respectively.
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Financial Summary
BANK | GROUP | |||||||
Balance Sheet (in billions of Naira) | Mar-23 | Dec-22 | Change | Mar-23 | Dec-22 | Change | ||
Total Assets | 2,923.2 | 2,793.7 | 4.6% | 2,925.5 | 2,795.8 | 4.6% | ||
Gross Loans & Advances | 1,015.6 | 1,000.9 | 1.5% | 1,015.6 | 1,000.9 | 1.5% | ||
Customer Deposits | 1,633.3 | 1,481.3 | 10.3% | 1,626.5 | 1,474.5 | 10.3% | ||
Shareholders' Funds | 302.2 | 289.9 | 4.3% | 309.6 | 297.0 | 4.3% | ||
Ratios | ||||||||
Coverage Ratio (incl. regulatory risk | 148.7% | 148.3% | 0.4% | 148.7% | 148.3% | 0.4% | ||
reserves) | ||||||||
Average Liquidity Ratio (regulatory | 42% | 38% | N/A | N/A | N/A | |||
minimum - 30%) | ||||||||
Non-Performing Loan Ratio | 4.5% | 4.0% | -0.5 | 4.5% | 4.0% | -0.5 | ||
Net Asset Value per share | N10.33 | N9.90 | 0.43 | N10.58 | N10.15 | 0.43 | ||
Capital Adequacy | 15.6% | 14.4% | 1.0% | N/A | N/A | N/A |
BANK | GROUP | ||||||
Income Statement (in billions of Naira) | Q1 2023 | Q1 2022 | Change | Q1 2023 | Q1 2022 | Change | |
Gross Earnings | 65.9 | 43.8 | 50.5% | 66.3 | 43.9 | 50.9% | |
Net Interest Income | 9.6 | 13.2 | -27.8% | 9.8 | 13.3 | -26.6% | |
Non-Interest Income | 25.4 | 11.4 | 122.1% | 25.6 | 11.5 | 122.7% | |
Credit Impairment/ (Write Back) | (2.05) | (0.4) | -447.6% | (2.05) | (0.4) | -446.1% | |
Operating Expenses | 19.8 | 18.0 | 10.4% | 19.9 | 18.0 | 10.4% | |
Profit Before Tax | 12.8 | 6.4 | 101.7% | 13.1 | 6.4 | 104.1% | |
Profit After Tax | 12.4 | 6.1 | 103.4% | 12.6 | 6.8 | 105.5% | |
Ratios | |||||||
Cost to Income Ratio | 60.8% | 73.9% | 13.1% | 60.3% | 73.7% | 13.4% | |
Return on Equity | 16.9% | 9.6% | 7.3% | 16.9% | 8.3% | 8.6% | |
Return on Assets | 1.8% | 1.0% | 0.8% | 1.9% | 0.9% | 1.0% | |
Earnings per share | 42k | 21k | 21k | 43k | 21k | 22k |
For the detailed Profit and Loss Account, Balance Sheet, Cash Flow Statement and notes to the accounts, please visit www.unionbankng.com
- ENDS -
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Notes to editors:
About Union Bank of Nigeria Plc.
Union Bank was established in 1917 and is one of Nigeria's longest-standing and most respected financial institutions. We offer a portfolio of banking services to individual, SME,
public, commercial, and corporate clients, and our vision is to be Nigeria's most reliable and
trusted partner.
Our offerings include savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. These services are provided through our digital channels, including online banking, mobile banking, debit cards and point-of-sale terminals, and an extensive network of over 281 sales and service centres and 823 automated teller machines spread across Nigeria.
Following receipt of all regulatory approvals in June 2022, a consortium of the majority shareholders of Union Bank led by Atlas Mara Limited divested their stake (an aggregate of 93.42% of the issued share capital of Union Bank) to Titan Trust Bank (TTB). TTB is majority owned by TGI Group, a Nigerian conglomerate.
Union Bank employs all its resources to achieve its mission to make lives better by delivering the simplest, smartest solutions and guaranteeing the best experience across its various touchpoints, with a strategy focused on the right talent, optimised processes and platforms, robust technology, and a re-energised brand.
More information can be found at: www.unionbankng.com
Media Enquiries: Emailinvestorrelations@unionbankng.com
Forward-Looking Statement and Disclaimers
This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities.
The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law, and therefore, persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.
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Disclaimer
Union Bank of Nigeria plc published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 15:07:48 UTC.
