Union Bank reports 461% growth in PBT in Q3, 2023
Sahara Weekly Reports That Union Bank Plc has announced a significant financial performance for the third quarter ending September 30, 202per centbank reported a profit before tax (PBT) of N102.3 billion, reflecting an impressive growth of 461.1 per cent compared to the PBT of N18.2 billion in the corresponding period of 2022. This nper centachievement is attributed to a surge in gross earnings, which reached N309.1 billion, marking a 120 per cent increase from N140.6 billion in 2022.
The fper centl highlights further showed a substantial rise in non-interest income, soaring to N144per centn from N28.3 billion in the same period of 2022, denoting an exceptional growth of 409 per cent. Net opper cent income after impairments also experienced a remarkable upswing by 121 per cent, reaching ₦168.7 billion, compared to N76.3 billion in 2022.
Operating expensper centeased by 14.2 per cent to ₦66.4 billion, attributable to factors such as the inflationary environment, elevated power costs, and non-discretionary regulatory expenses. Despite this, the bank demonstrated a robust performance with gross loans esalating by 38.1 per cent to ₦1.38 trillion, and deposits witnessing a substantial 30 per cent increase, reaching ₦1.93 trillion, a testament to the unwavering confidence of customers in the brand.
Commenting on the results, Mudassir Amray, Managing Director and CEO expressed satisfaction with the strong financial results, citing a record-breaking revenue increase and impressive profitability figures. He attributed theseper centements to the bank’s strategic positioning of the balance sheet, effective liability generation, and the creation of responsible risk assets.
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Amray emphasised that the growth in revenue and profitaper centexceeded expectations, underscoring the success of the wholesale banper centrategy. Non-interest income saw a phenomenal surge of 409per centt, reaching ₦144 billion. The CEO highlighted the bank’s customer-centric approach, robust product portfolio, and innovative channels as key contributors to the 30per centt growth in customer deposits.
The bank remains well-capitalized with a capital adequacy ratio (CAR) of 15.4per centt, and non-performing loans remain below the regulatory limit at 3.7per centt. Amray expressed optimism about the future, citing strong business fundamentals, a customer-centric approach, and a dedicated team that positions the bank to seize opportunities in the evolving market.
In addressing the merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion, with all regulatory requirements being fulfilled. He believes that the merger will further strengthen the bank’s position and financial performance.
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He said: “We remain optimistic about the future and are confident in our ability to sustain momentum. Our strong business funper centls, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly eper cent market. Onper centrger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalisation of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.”
“Net operating income after impairments increased by 12per centnt to ₦ 168.7 billion from ₦76.3 billion in September 2022 on the back of increased net revenue across our key business segments – corporate, retail and SME. Although our operating expenses increased by 1per centnt to ₦66.4 billion compared to ₦58.1 billion in September 2023, we significantly improved our Cost to Income Ratio to 39.per centnt from 76.per centnt recorded in September 2022. This improvement was due to our effective management of costs, implementation of efficiency measures, optimisation opportunities, and strong revenue growth. The high inflationary environment, non-discretionary regulatory costs, and power costs mainly caused the increase in operating expenses.
“The Bank maintained a solid balance sheet position as Gross Loans grew strongly by 38.per centnt to ₦1.4 trillion compared to ₦.1.0 trillion in December 2022 and Customer deposits by 3per centnt on the back of increased New-to-Bank customers, sales promotion, and product patronage. Given the unwavering confidence our customers have bestowed on us, we are confident of finishing the year strong. The Bank will continue to invest in technology to improve customer interactions across our channels and drive efficiency.”
