UNION Bank Plc generated N175 billion in gross earnings in 2021, compared to N160.7 billion the previous year.
The bank’s audited results for the year which ended December 31, 2021 revealed an increase in gross earnings of 8.9% to N175 billion.
However, the bank’s profit before tax (PBT) fell by 19.3% to N20.5 billion in 2019 from N25.4 billion in 2020.
Non-interest income for the bank increased by 26.7 percent, from N44 billion to N55.7 billion.
It was however revealed that the significant rises in debt recoveries were the driving force behind it. Its net operating income after impairments fell by 3.6 percent to N99.7 billion in the first quarter of 2020 as compared to N103.4 billion the previous year.
Customer deposits climbed by 20.4 percent to N1.4 trillion in the same period in 2020, up from N1.1 trillion in the previous year.
Following an enhancement in its operating and go-to-market model to deliver greater performance and efficiency using its network across the regions, the bank’s Chief Executive Officer, Emeka Okonkwo, said the bank is now expanding client engagement and product penetration.
He stated that the strategy is currently resulting in increased client revenues across all geographies.
“We maintained our excellent growth in non-interest revenue through a mix of aggressive recoveries, which increased by 119% from N7.2 billion to N15.9 billion during the quarter, as well as increased fee and commission income by 33% and e-business by 26%” He continued.
“These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels. Total active UnionMobile users now stand at 3.3 million, up 20 per cent while our Union360 customer base grew by 22 per cent to 26,400.”
According to him, the bank will continue to focus on widening and deepening its solid foundations while also improving digital delivery platforms and customer service capabilities.
“We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability.
“As we turn a new chapter for our Bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future.”
Also speaking, the Chief Financial Officer of the bank, Joe Mbulu, said: “We maintained very strong cost controls during the year despite the inflationary pressures and the translation effect of currency depreciation on our cost base.
“We have remained proactive in the way we manage our growing risk assets, maintaining our asset quality during the year with our NPL ratio growing marginally from four per cent to 4.3 per cent.”
