Union Bank Plc has reported a profit before tax of N12.1 billion for the half year ended June 30, 2019 as against N11.7 billion posted in 2018, representing a growth of four per cent.
The bank’s unaudited financial statements for the period also showed a profit after tax of N11.9 billion in contrast to N11.5 billion recorded in 2018, accounting for a growth of three per cent.
Gross earnings declined by nine per cent to N76.0 billion from N83.3 billion in H1 2018, due to a decrease in average earning assets while non-interest income was down 12 per cent to N18.7 billion from N21.1billion in H1 2018; due to muted volatility negatively impacting trading income.
Commenting on the results, Emeka Emuwa, CEO, union Bank, said: “Notwithstanding the realities of operating in a challenging economic environment, the group delivered a 4 per cent growth in profit before tax to N12.1 billion from N11.7 billion in H1 2018.
“To sustain growth in earnings, we remain steadfast in our commitment to delivering value and first-class customer experience to all our customers. We have developed a concerted and clear plan to increase our risk assets with our loan book growing by eight per cent to N563.0 billion compared to year-end 2018.
“We successfully closed our Series 3, 10 year N30 billion bond in June, as part of our N100 billion debt capital programme. This series, which was once again fully subscribed, is the largest 10-year bond issued by a Nigerian corporate to date.
“This further reinforces the confidence of the investor community in Union Bank. With this new injection of Tier 2 capital, we are well positioned to deliver on our growth strategy and priorities.
“Looking ahead, we will continue to focus on opportunities to deliver our simpler, smarter banking promise to our customers while improving internal operational efficiencies which will translate to enhanced shareholder value.”
Speaking on the H1 2019 figures, the Chief Financial Officer, Joe Mbulu, said: “In the first half of 2019, we continued with our expansion strategy to grow our agency banking footprint which in turn boosted customer confidence in our brand.
“Customer deposits have followed the same trajectory with a four per cent growth, to N889.5 billion as at June 2019 from N857.6 billion in December 2018. Net Interest Income after Impairments is also up three per cent to N30.5 billion compared to N29.7 billion in the same period in 2018.”
