Union Bank posts N15.5bn profit

The bank is also training 500 primary school pupils on the benefits of upcycling as part of its efforts to positively impact the communities within which it operates in line with the 2018 World Environmental Day celebrations.

The Chairman of the bank, Cyril Odu, made the disclosure while presenting its report to shareholders at the 49th Annual General Meeting (AGM) in Abuja.

According to Odu, other highlights of the bank’s financial performance in 2017 included the growth of interest income by 25 per cent to N124.5 billion from N99.7 billion in 2016 as a result of the impact of naira devaluation on the foreign currency denominated loan book, government securities yields and loan book re-pricing. Non-interest revenue also moved up by 31 er cent to N39.3 billon from N29.9 billion in 2016, driven by improved fee and commission income, trading income and a more effective debt recovery machine.

Operating expenses increased by five per cent to N65.1billion from N62 billion in 2016 due to inflationary pressures and the impact of devaluation on technology and network investments Gross loans grew by 5 per cent to N560.7 billion compared to N535.8 billion in 2016, while customer deposits rose by 22 per cent to N802.4 billion (from N658.4 billion in 2016) continuing its upward trajectory since 2016.

Also speaking on the Group’s results for the year, its Chief Executive Officer, Emeka Emuwa said: “Strengthening our capital base through the Rights Issue was key for the Bank in 2017. Notwithstanding the challenges a tightened economy presented, the rights issue was 20 per cent oversubscribed.

“This overwhelming success is credited to strong shareholder and investor confidence in Union Bank’s immediate and longer-term plans. “

Uche Usim, Sunnewsonline.com