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Union Bank of Nigeria Plc’s in its nine-month result ending September 30, 2022, released on Friday, has said that it’s profit before tax has grown by 14 per cent.
According to the financial statement released to the Nigerian Exchange Limited (NGX), the bank’s profit before tax grew to N18.2 billion from N16.0 billion reported in the comparative period of 2021.
Gross earnings also went up by 12.4 per cent to N140.6 billion against 125.2 billion recorded in the nine months (9M) of last year. The growth according to the bank was driven by higher-earning assets.
Commenting on the results, Mudassir Amray, CEO said: “We had a good third-quarter performance, with strong growth in profits supported by additional net interest income. Our strategy remains on track, with good delivery in all areas.
“This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising lending to key sectors.”
Speaking on the performance, Amray noted that it reflects the continued impact of the bank’s strategy, with gathering revenue momentum.
“The progress that we have made means we are in a strong position. In 9M 2022, compared to 9M 2021, the bank’s Gross Earnings, Net Interest Income and Profit Before Tax grew by 12.4 per cent, 59.8 per cent and 14 per cent, respectively.
“As we look towards the rest of the year, we retain a cautious outlook on the external risk environment believing that the lows of recent quarters are behind us. This confidence, together with our focus on building on our efficiency, expanded synergies and robust cost control, will put the bank in a stronger position.”
Speaking on the 9M 2022 numbers, Chief Financial Officer, Joe Mbulu said: “Notwithstanding our deposit book growth, our focus on optimizing our funding costs have started yielding results which have driven profitability from gross revenues to the bottom line, with higher net revenue from funds (after impairment) in the period.
Interest Income grew by 37 per cent to N109.3 billion as a result of higher earning assets while Non-Interest Income (NII) declined by 33 per cent to N28.3billion compared to the prior year driven by a decline in recoveries by 64.5 per cent during the period.
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“We grew our loan book by 10 per cent from N899.1 billion as of December 2021 to N990.1 billion as at the end of Q3 2022. Customer deposits increased by 12.7 per cent to N1.5 trillion.
Our non-performing loan ratio as of 9M 2022 was 4.2 per cent while our coverage ratio remains robust at 143.2 per cent.
Operating Expenses grew by only five per cent from N55.2 billion as of 9M 2021 to N58 billion due to inflationary pressures. Consequently, our cost-to-income ratio decreased from 77.6 per cent to 76.1 per cent as of September 2022.
The bank remains adequately capitalized to pursue its growth ambitions with Capital Adequacy Ratio (CAR) at 15.3 per cent.”
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