• Thu. Jun 13th, 2024

Union Bank Reports Remarkable 461% Growth In Q3 PBT For 2023

Union Bank Plc has announced a stellar financial performance for the third quarter ending September 30, 2023, demonstrating exceptional growth in its Profit Before Tax (PBT). The bank reported a staggering PBT of N102.3 billion, marking a remarkable surge of 461.1 percent compared to the corresponding period in 2022 when it recorded N18.2 billion in PBT. This significant achievement is attributed to a substantial increase in gross earnings, soaring to N309.1 billion, up by 120 percent from N140.6 billion in 2022.

The financial highlights revealed a significant rise in non-interest income, which skyrocketed to N144 billion from N28.3 billion in the same period of 2022, showcasing an extraordinary growth of 409 percent. Net operating income after impairments also witnessed an impressive upswing, reaching ₦168.7 billion, a surge of 121 percent compared to ₦76.3 billion in 2022.

Operating expenses observed a 14.2 percent increase to ₦66.4 billion, attributed to factors such as the inflationary environment, heightened power costs, and non-discretionary regulatory expenses. However, the bank showcased robust performance with gross loans surging by 38.1 percent to ₦1.38 trillion, while deposits witnessed a substantial 30 percent increase, reaching ₦1.93 trillion, indicating the unwavering trust of customers in the brand.

Mudassir Amray, the Managing Director and CEO, expressed satisfaction with the bank’s strong financial results, attributing the record-breaking revenue increase and impressive profitability figures to strategic balance sheet positioning, effective liability generation, and responsible risk asset creation.

Amray emphasized that the revenue and profitability growth exceeded expectations, highlighting the success of the wholesale banking strategy. He noted a phenomenal surge of 409 percent in non-interest income, reaching ₦144 billion, attributing this remarkable growth to the bank’s customer-centric approach, robust product portfolio, and innovative channels, which contributed to the 30 percent growth in customer deposits.

The bank maintains a robust capital adequacy ratio (CAR) of 15.4 percent, and non-performing loans remain below the regulatory limit at 3.7 percent. Amray expressed optimism for the future, citing strong business fundamentals, a customer-centric approach, and a dedicated team positioning the bank to seize opportunities in the evolving market.

Speaking on the pending merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion, with all regulatory requirements being met. He anticipates that the merger will further fortify the bank’s position and enhance its financial performance.

Amray stated, “We remain optimistic about the future and are confident in our ability to sustain momentum. Our strong business fundamentals, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly evolving market. On the merger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalization of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.”

Union Bank continues its commitment to technological advancements to enhance customer interactions across various channels and drive operational efficiency.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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