Union Bank increase customers deposit by N41.3bn in 6-months
By Kayode Ogunwale

Union Bank of Nigeria Plc (UBN) Wednesday announced an increment of N41.275 billion in its deposits from customers in unaudited result and accounts for half year ended June 30, 2016.
The bank’s customers deposits increased by 7.23 per cent from N570.639 billion it started the year to close half year 2016 with N611.914 billion.

Union Bank also increase its loans and advances to customers during the last six months by N109.221 billion representing 29.78 per cent. The bank’s increased its loans and advances to customers from N366.721 billion as at December 2015 to N475.942 billion in June 2016.

However, the group gross earnings rose by N4.680 billion or 8.45 per cent from N55.389 billion to N60.069 billion.

It’s profit before tax gaining N2.312 billion or 34.96 per cent from N6.613 billion in first half 2015 to N8.926 billion in half year 2016.

The group profit after tax also increased by 35.66 per cent to N8.761 billion from N6.458 billion recorded in prior half year of 2015.

Commenting on the bank’s half year results, Chief Executive Officer, UBN, Emeka Emuwa, said, “Our sustained focus on executing Union Bank’s strategic transformation objective during the first half of 2016 has delivered growth in our core business, notwithstanding a difficult economic environment.

“The bank recorded nine per cent year-on-year growth in core gross earnings, driven primarily by balance sheet optimisation.

“Our core business remains resilient in these challenging times and we maintain our commitment to delivering value to all our stakeholders. We also remain confident that our profit retention strategy will adequately support the Bank’s medium term growth objectives, and continue to strengthen our risk management to mitigate risk and losses,” he added.

Speaking further on the bank numbers, Chief Financial Officer, Oyinkan Adewale said, “We are pleased that our focus on building the business fundamentals is yielding significant value across the bank.

“With increasing consumer confidence in our products and services, we have increased our low cost deposits, making us less reliant on more expensive alternative funding sources. This has led to a 20 per cent reduction in cost of funds year-on-year.

“We are also seeing impact on non-interest revenue, which grew during the period. Excluding one-time gains on sale of subsidiaries, non-interest revenue is up by 27per cent to N14.9 billion in half year compared to half year 2015.

“Not withstanding an inflationary environment, our operating costs remain in line with expectations, as our investments in technology continue to yield improved efficiency across the bank.

“Our liquidity ratio, at 39 per cent, remains well in excess of the regulatory minimum. With a coverage ratio of 188 per cent, we believe that the loan book is well provisioned, given the current economic climate,” she added.