From Ngozi Onyeakusi, Lagos
Union Bank, one of Nigeria’s longest standing and most respected financial institutions, has announced its unaudited financial statements for the period ended June 30 2018.
The lender recorded a Profit before tax growth of 23% to 11.7bn against 9.5bn recorded in H1 of 2017 while Gross earnings increase by 16% to 83.3bn from 72.1bn recorded in H1 2017, the growth according to the lender was driven by a 10% increase in interest income and 37% increase in non-interest income .
Interest income equally soared by 10% to 62.2bn from 56.6bn recorded in H1 of 2017 while Net interest income before impairment went up by 14% to 34.4bn from 30.1bn recorded in H1 2017, this was driven by an improvement in net interest margins from 7.9% to 8.2% on the back of lower cost of funds.
Similarly, Non-interest income up by 37% to 21.1bn from 15.4bn posted in H1 2017 driven by enhanced treasury trading income, recoveries and 311% growth in alternate channel revenues while Net operating income as well increase by 22% to 50.9bn from 41.9bn posted in H1 2017.
Commenting on the results, Emeka Emuwa, CEO said: “In the first half of the year, we have continued to see positive results from our efficiency and productivity drive. Across all our business lines, we witnessed strong underlying performance, translating into improved earnings. We continue to focus on the recovery of non-performing loans. With the resolution in Q2 2018 of the large real estate exposure which was impaired in December 2017, the Group NPL ratio is down to 10.8% from 14.9% at 31 March 2018 and 19.8% at 31 December 2017. The Group continues to demonstrate its ability to deliver strong results notwithstanding a competitive and challenging operating environment.
Gross earnings rose by 16% to N83.3 billion from N72 billion in H1 2017, underpinned by improved Net Interest Margins (NIM), robust treasury trading income, recoveries and alternate channel revenues, on the back of increased customer adoption. Our Profit Before Tax (PBT) grew by 23% compared to H1 in 2017.