Union Bank of Nigeria (UBN), has posted 14 per cent growth in profit before tax in its unaudited financial statements for the nine months ended September 30, 2022.
The bank’s third quarter results on the Nigerian Exchange (NGX) showed that profit before tax stood at N18.2 billion as against N16 billion in 2021.
Gross earnings up by 12.4 per cent to N140.6 billion from N125.2 billion in nine-month 2021, driven by higher earning assets, while net operating income after impairments up 7.3 per cent to N76.3 billion as against N71.2 billion in 2021, driven by higher interest income.
Non-interest income down by 32.7 per cent to N28.3 billion compared to N42 billion in nine months, 2021, due to lower recoveries, while operating expenses increased by 5.2 per cent to N58.1 billion from N55.2 billion in 2021, an outcome of higher non-discretionary regulatory costs, software expenses and power costs.
Customer deposits rose by 12.7 per cent from N1.36 trillion in December 2021 to N1.53 trillion under the period review, while gross loans up 10.1 per cent at N990.3 billion, higher than N899.1 billion in December, 2021.
Speaking on the results, the CEO of Union Bank, Mudassir Amray said, “We had a good third-quarter performance, with strong growth in profits supported by additional net interest income. Our strategy remains on track, with good delivery in all areas.
“This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising lending to key sectors. Our performance reflects the continued impact of our strategy, with gathering revenue momentum.”
Speaking on the nine months 2022 numbers, chief financial officer of Union Bank, Joe Mbulu said,“Notwithstanding our deposit book growth, our focus on optimizing our funding costs have started yielding results which has driven profitability from gross revenues to the bottom line, with higher net revenue from funds (after impairment) in the period.”
