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Union Bank of Nigeria Plc Group Audited Financial Statements for the Year Ended December 31, 2022

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Union Bank partners with Women's World Banking and TGI Group to Implement'Digital Supplier Credit' Solution

Union Bank of Nigeria Plc

Group Audited Financial Statements for the Year Ended December 31, 2022

Strong revenue growth driven by core business deepening

 

 

 

Union Bank has announced the release of its audited financial statements for the year ended 31st December 2022, which reflects strong financial performance despite macroeconomic headwinds.

 

 

 

Union Bank of Nigeria Plc

Group Audited Financial Statements for the Year Ended December 31, 2022

 

Union Bank maintained consistent success due to the disciplined execution of its go-to-market strategy focused on deepening its core business while exploring new areas of opportunity to acquire, engage, and retain customers.

 

 

 

 

 

 

 

 

 

Bank Financial Highlights:

 

 

● Gross Earnings: up 19% to ₦208.2 billion (₦175.0 billion in 2021), driven by strong
growth in Net Interest Income.
● Net Interest Income: up 33% to ₦59.1 billion (₦44.3 billion in 2021) driven by growth in earning assets.
● Net Operating Income after impairments: up 10% to ₦110 billion (₦99.7 billion in 2021).
● Profit before Tax: up by 47% to ₦30.2 billion (₦20.5 billion in 2021).
● Operating Expenses: marginally grew by 0.4% to ₦79.4 billion (₦79.2 billion in 2021), reflecting tight cost control despite inflationary pressures.
● Gross Loans: up 11% at ₦1.0 trillion (₦899.1 billion in December 2021) as we expand our lending to vital economic sectors of opportunity.
● Customer Deposits: up 9% at ₦1.48 trillion (₦1.36 trillion in December 2021) as we expand our product base and digital channels.
Key Operational Highlights:
Retail & Digital
Digital
• Channels & Platforms: Union Bank in 2022 invested in strengthening its technology architecture to drive key processes and serve more customers through digital and agent channels. Consequently, active users on UnionMobile increased by 15.7% to 3.8 million users, and active UnionDirect Agents grew by 62.7% to 51,737. This led to an increase in transaction value and volume on UnionMobile by 121% and 20.4%, respectively.
In 2022, we launched a chatbot that enabled real-time interactions with customers. The chatbot has resolved 1.3 million customer complaints, demonstrating its effectiveness in streamlining the complaints resolution process. In addition, we have made several other investments to enhance our customers’ experience. As a result, we have seen significant improvements in the efficiency and efficacy of our customer complaints resolution.

 

 

 

 

• Digital Propositions: Our priority has been to venture into unexplored avenues within the digital space to generate fresh revenue streams for the Bank. As part of this strategy, we have broadened the usage of our personal finance and lifestyle investment application, M36, which was first introduced in 2021. M36 empowers customers to grow, manage and invest their wealth in high-yield instruments through the self-service platform.

 

 

 

Retail Offerings

 

 

The Bank grew its retail deposits by 14% to N675.8 billion from N594.9 billion in 2021. Some of the initiatives which contributed to this growth include:

 

• Save & Win Palli Promo 2: We rolled out the campaign’s second edition and rewarded over 611 customers with a combined sum of ₦55.5 million. The promo aims to generate low-cost deposits.
• Target Savings Campaign: In time for the World Cup, we rewarded 596 customers with ₦26 million in our flagship target savings campaign and closed out our five-year Target Savings Product (TSP) – UnionKorrect Qatar. Ten customers were rewarded with cash prices of ₦5 million, and 375 customers with sports jerseys.
• Workplace Banking: We re-launched Workplace Banking, our exclusive proposition designed to offer employees convenience while providing support to achieve their goals and aspirations.
Citizenship, Sustainability, and Innovation
• In 2022, we prioritised inclusion and sustainability while focusing on business growth. In doing so, we impacted our employees, customers, and the communities we serve while contributing towards the United Nations Sustainable Development Goals.
― UnionCares: As a yearly tradition, we extend our assistance to the community by providing food boxes to those in need. In 2022, our staff
contributed to this cause by distributing over 1,700 food packages to families all over Nigeria. Furthermore, we extended our support to 15 Non-Governmental Organisations (NGOs), such as the Chess in Slums Foundation and the Special Olympics Nigeria, by providing donations to supplement their commendable efforts.
―Quality Education:We partnered with impactful organisations, including Give Girls a Chance and Child Lifeline, to provide full scholarships to twenty
girls and ten boys in Abuja and Lagos. As part of our Financial Literacy Day and World Savings Day activities, we engaged with more than 4000 students and their teachers.

― Youth Empowerment and Development: In July 2022, we successfully graduated 52 new ‘Techies’ from our first-ever Tech Job Boot camp. This recruitment and training program has significantly contributed to accelerating our go-to-market strategy and further consolidating our position as a formidable player in the financial sector.
Union Bank has been a long-standing supporter of LEAP Africa since 2013, enabling them to empower and equip 170 young social innovators and entrepreneurs to scale their community-changing ideas sustainably over the years. Moreover, our sponsorship of the 2022 Leadership, Empowerment, Achievement, and Development (LEAD) Camp by Junior Achievement Nigeria has empowered more than 300 young girls with critical thinking skills. Through this initiative, we have impacted more than 700 girls over the past eight years.
― Employee Volunteering: Our employees have shown unwavering compassion towards communities and social causes. In 2022, over 265 of our
employees devoted nearly 1000 hours to volunteering for various bank- sponsored initiatives. These initiatives included mentoring sessions with the Women’s Technology Empowerment Centre (WTEC), which aims to promote women’s participation in Science, Technology, Engineering, and Mathematics (STEM), financial literacy drives, SME workshop clinics with social innovators, and visits to orphanages to extend their support.

 

 

 

Commenting on the results, Mudassir Amray, MD/CEO, said:

 

 

 

“Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers. On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.

 

 

 

 

 

 

The Bank’s gross earnings grew by 19% to N208.1 billion from N175 billion in 2021. Whilst non-interest income declined marginally by 1.0%. Net interest income after impairment grew 26.1% to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1% from N20.5 billion recorded in 2021.

 

 

 

 

In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities.

 

 

 

 

 

 

As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them.”

 

 

 

 

 

Speaking on the FY 2022 numbers, Chief Financial Officer Joe Mbulu said:
“Our financial performance is a testament to the disciplined execution of our plans for the year and resilience against all odds. While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage.

 

 

 

 

 

Operating expenses increased marginally by 0.43% due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5% from 79.4% in 2021 due to cost- control measures implemented during the year.

 

 

 

 

The Bank’s balance sheet remains strong, with total assets increasing by 8.8% to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5% from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8% to N 1.48 trillion.

 

 

 

 

 

 

While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our NPL ratio reduced from 4.3% to 4.0%, and the capital adequacy ratio remained within regulatory limits at 14.4%.

 

 

 

 

 

Financial Summary
Balance Sheet (in billions of Naira) Total Assets
Gross Loans & Advances
Customer Deposits
Shareholders’ Funds
Ratios
Coverage Ratio (incl. regulatory risk reserves)
Average Liquidity Ratio (regulatory minimum – 30%)
Non-Performing Loan Ratio Net Asset Value per share Capital Adequacy

Business

Lion Oshiyemi Pledges redefinition, reposition as he emerges 20th President of OGUNCCIMA

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Lion Oshiyemi Pledges redefinition, reposition as he emerges 20th President of OGUNCCIMA

Lion Niyi Oshiyemi has been invested as the 20th President of the Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) at the Chamber’s 40th Annual General Meeting.

The investiture ceremony of the new OGUNCCIMA leadership was held on Thursday at Tunwase Hall in Ijebu Ode, Ogun State with top Chamber movement members in attendance.

The President In his acceptance speech, expressed gratitude to the immediate past President, Engr. Mike Akingbade, and the Chamber for entrusting him with the esteemed position.

He pledged to leverage available opportunities to redefine and reposition the Chamber, creating platforms to influence legislation and improve the business environment.

“I am honored to lead this prestigious organization and I promise to harness all available opportunities to redefine and reposition the chamber of commerce movement in the state”.

“I will continue to create platforms to influence legislation and other measures affecting trade, improve the business environment, and build a Nigerian economy of thriving business opportunities through networking”.

“I wish to enjoin you all who represent businesses, if you have not joined the OGUNCCIMA, please come and lend your voice to others. The bigger the network, the louder the voice and the stronger the influence”.

“Our advocacy seeks to ensure that the business community can have its voice heard on issues that are important to it”.

“I’d like to introduce to you my Presidency’s flagship project “OGUNCCIMA Secretariat”: The project is massive and requires a lot, I therefore seek your support and look forward to partnering with all stakeholders – the state government and it’s agencies (Federal and State Ministries, Departments and Agencies), development partners, the diplomatic communities, the media, and other stakeholders”, he said.

Oshiyemi also praised the founding fathers of the Chamber, saying, “I laud the vision of our founding fathers, who have laid a solid foundation for us to build upon. I am committed to taking OGUNCCIMA to greater heights and making it a beacon of hope for businesses in Ogun State.”

The Ogun State Hon. Commissioner for Industry, Trade and Investment, Hon. Adebola Sofela Emmanuel, in his keynote address said by the Permanent Secretary, Ministry of Trade and Investment, Dr. Olu Ola Aikulola, said over the years that the Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA), has not only remained a beacon of entrepreneurial excellence, but also partners in driving economic growth, fostering trade, and promoting investment opportunities in the state.

He said: “I would like to extend my heartfelt congratulations to OGUNCCIMA on this historical movement. Forty years of dedicated service to the industrial, trade, and agricultural sectors of Ogun State is no small feat”.

“Over the years, the Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) has not only been a beacon of entrepreneurial excellence but also a pivotal partner in driving industrial growth, fostering trade, and promoting investment opportunities”.

“Today, as we elect new officers to continue this legacy of excellence, I urge all members to approach this process with a spirit of unity, fairness, and foresight. The future of our chambers and the economic well-being of our state depend on the collective wisdom and strategic vision of our leaders”.

“For us, as a government, we will continue to put in place Institutional mechanisms that will guide our various developmental programmes in all sector of the economy”, he added.

In his remarks, NACCIMA President, Dele Kelvin Oye, represented by the Director – General, Olusola Obadimu, urged the new leadership of OGUNCCIMA to reflect on the the Chambers achievements and chart the course for the future.

“Today, as we gather for the 40th Annual General Meeting and Investiture of New Executives, I want to charge the new leadership to be dedicated and build on the achievements of the past administrations”.

“On behalf of NACCIMA, I congratulate the new officers and may our shared efforts continue to bear fruit, and may new officers lead us for greater heights of success and prosperity”, he concluded.

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ASR AFRICA FLAGS OFF CONSTRUCTION OF A N280 MILLION INTEGRATED PUBLISHING HOUSE FOR BABCOCK UNIVERSITY, ILISHAN-REMO, OGUN STATE, NIGERIA

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ASR AFRICA FLAGS OFF CONSTRUCTION OF A N280 MILLION INTEGRATED PUBLISHING HOUSE FOR BABCOCK UNIVERSITY, ILISHAN-REMO, OGUN STATE, NIGERIA

ASR AFRICA FLAGS OFF CONSTRUCTION OF A N280 MILLION INTEGRATED PUBLISHING HOUSE FOR BABCOCK UNIVERSITY, ILISHAN-REMO, OGUN STATE, NIGERIA

 

 

 

 

Sahara Weekly Reports That The Abdul Samad Rabiu Africa Initiative (ASR Africa), the philanthropic initiative of the Chairman of BUA Group, Abdul Samad Rabiu (CFR, CON), has flagged off the construction of a N280 million Abdul Samad Rabiu Integrated Publishing House for Babcock University, Ilishan-Remo, Ogun State. This project will enhance the capacity of the University from basic press status to a modern, integrated publishing house to encompass publishing, print production, and other related diversified services. The one-storey building facility will serve as a laboratory and studio for training students of communications, media studies, and allied disciplines as well as other disciplines.

 

 

 

ASR AFRICA FLAGS OFF CONSTRUCTION OF A N280 MILLION INTEGRATED PUBLISHING HOUSE FOR BABCOCK UNIVERSITY, ILISHAN-REMO, OGUN STATE, NIGERIA

 

 

 

 

At the groundbreaking event, the Vice Chancellor of the University, Prof. Ademola S. Tayo, expressed satisfaction at the nomination by ASR Africa, under its Tertiary Education Grant Scheme. He added that the choice of the project was a response to the vision to take the Mass Communications Department of the University to a whole new level. According to him, the university’s vision is to produce young men and women capable of critical thinking, and problem-solvers capable of proffering innovative solutions to problems of everyday life, be it social, political, and cultural.

 

 

 

 

 

 

 

 

 

 

 

 

In his response, Dr. Ubon Udoh, the Managing Director of ASR Africa, expressed his delight at the University’s choice of establishing an Integrated Publishing House. He added that when information is appropriately applied, human society is empowered to liberate itself from limitations and attain its full potential. Dr Udoh reiterated the commitment of the Chairman of ASR Africa, Abdul Samad Rabiu to supporting quality education within the tertiary education system in Nigeria and urged the institution to focus on the sustainability of this noble project. He also reiterated the importance of cooperation and collaboration between the university and the contractor for the timely delivery of the publishing house.

 

 

 

 

 

 

 

 

 

About ASR Africa

ASR Africa is the brainchild of African Industrialist, Philanthropist, and Chairman of BUA Group, Abdul Samad Rabiu, the Abdul Samad Rabiu Africa Initiative (ASR Africa) was established in 2021 to provide sustainable, impact-based, homegrown solutions to developmental issues affecting Health, Education and Social Development within Africa.

 

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CBOs Laud Minister of Agric Kyari Over Transparent Distribution Of Fertilisers, Foodstuff Across Nigeria

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CBOs Laud Minister of Agric Kyari Over Transparent Distribution Of Fertilisers, Foodstuff Across Nigeria

CBOs Laud Minister of Agric Kyari Over Transparent Distribution Of Fertilisers, Foodstuff Across Nigeria

 

 

A network of community-based organizations (CBOs) in Nigeria, the Coalition of Ethnic Nationalities’ Rights Agenda, the South East Revival Coalition, and Progressive Yoruba Youth for Change have applauded the Minister of Agriculture and Food Security, Sen. Abubakar Kyari, for his efforts and transparency in the distribution of food, fertilisers and other farming inputs across the country.

 

CBOs Laud Minister of Agric Kyari Over Transparent Distribution Of Fertilisers, Foodstuff Across Nigeria

 

The CBOs gave the commendation at a joint press conference held in Abuja on Thursday. The conference was addressed by Mallam Yusuf Khalifa, National Coordinator of the Coalition of Ethnic Nationalities’ Rights Agenda; Dr. Eberechi Okonkwo, Convener of the South East Revival Coalition; and Comrade Olajide Olumide Adeniyi, Executive Secretary of Progressive Yoruba Youth for Change.

 

 

 

“The Minister of Agriculture and Food Security, Senator Abubakar Kyari has established a reputation for integrity and transparency in the ministry. The transparency in the distribution of food, fertilisers and other farming inputs across the country under Kyari’s stewardship is unprecedented,” the CBOs said.

 

 

 

“Senator Kyari has demonstrated a practical commitment to enhancing food security and nutrition in the country by prioritising equity and fairness in the distribution of food, fertilisers and other farming inputs.

“We salute his sense of nationalism. His fair distribution of farming inputs has laid a strong foundation for a prosperous and sustainable agricultural sector. Kyari’s tireless efforts to revolutionise the agricultural sector as well as to ensure that Nigeria becomes self-sufficient in food production is beyond patriotic.

“His exceptional leadership has made the the issue of marginalization in the distribution of food, fertilisers and other farming inputs, a thing of the past in the country. The effective utilization of resources by the Minister has proven not only instrumental to modernising the agricultural space but also to peace and harmony on farms across the nation.

“We applaud Senator Kyari for championing the emancipation of Nigerian farmers, particularly those in rural communities who previously lacked access to government-distributed food, fertilizers, and other farming supplies. Kyari’s unwavering support for women and youth in agriculture has resulted in increased distribution of food, fertilizers, and other farming inputs to more female and young farmers this year than ever before.

“This network of community-based organisations urges the beneficiaries, especially those in the rural communities, to use the supplies judiciously for the purpose they were distributed for. The government has prioritised the agricultural sector as a key driver of Nigeria’s economic growth, hence, its unwavering support of the sector. Farmers must corroborate the government’s efforts by taking advantage of its policies, programmes and interventions.

“We urge the Minister to sustain his visionary leadership, effective resource utilization, and strategic initiatives which have yielded significant progress in the agricultural sector.

“We remain committed to working alongside the Minister to strengthen the agricultural sector and achieve a prosperous, food-secure, and environmentally sustainable Nigeria.”

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