Business

Union Bank reports 20% growth in PBT H1, 2024, despite CBN’s intervention

Published

6 months ago

August 20, 2024

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Despite the challenging environment following the Central Bank of Nigeria’s intervention in January 2024, which led to heightened customer concerns, Union Bank of Nigeria has reported a profit before tax of N79.8 billion on gross earnings of N333 billion during the half year ended June 30, 2024 compared with a profit before tax of N66.5 billion on gross earnings of N210.5 billion during the corresponding period of 2023, representing a growth of 20 percent in profit before tax and 58 percent in gross earnings.

The Bank said in a statement that,”This accomplishment demonstrates the bank’s resilience and commitment to delivering results in uncertain times.”

Commenting on the results, Yetunde B. Oni, Managing Director and Chief Executive Officer of the Bank ,said: “I am pleased that Union Bank of Nigeria has delivered a progressive financial performance in the first half of the year, with a significant boost in Net Interest Income, Net Operating Income, and Net Trading Income.

“At the beginning of the year, our top priority was to keep the momentum going with a strong focus on stability following the intervention of the Central Bank of Nigeria. We also continued with the planned strategic priorities, which are centred around scaling our digital play, driving hypergrowth in target sectors, optimising our wholesale bank structure, aggressively ensuring recoveries of past-due obligations, and orchestrating a robust ecosystem play through existing and new partnerships.

“So far, we are seeing the direct impact of our strategy on our financial performance. We achieved a substantial increase in Gross Earnings by 58% to ₦333bn compared to ₦210.5bn in H1 2023. Net Operating Income after Impairments increased by 32% to ₦143.6bn from ₦108.5bn in H1 2023, attributed to enhanced interest income, fees, commissions, and margin expansion. Similarly, we achieved Profit Before Tax (PBT) of ₦79.8bn, representing 20% growth compared to ₦66.5bn in H1 2023.

“In pursuit of our strategic priority to scale our digital play, Union Bank successfully launched its digital lending platform, UnionKash. This platform enables existing and new-to-bank customers to access soft loans easily. Since its launch in the first quarter of the year, over 14,000 customers have successfully accessed soft loans through the USSD code 82641#.

“These achievements reflect the remarkable resilience and dedication of our staff, who have been instrumental in navigating the challenges of a demanding operating environment. Despite the pressures of inflation, exchange rate volatility, and increased operational costs, our team has remained steadfast and committed to delivering excellence. I extend my sincere appreciation to all our employees for their hard work and unwavering dedication, which have been critical to our success in the first half of 2024.

“I also want to express our deep gratitude to our customers, whose loyalty to the Union Bank brand has been unwavering. Their trust and continued patronage have been vital to our success, and we remain committed to serving them with excellence. Additionally, we acknowledge the invaluable support from our regulators as we navigated the complexities of our operating environment.

“In line with the realities of our environment, the bank has initiated the process of recapitalisation. The Banking Sector Recapitalisation Program, introduced by the Central Bank of Nigeria (CBN), mandates banks to increase their minimum paid-in common equity capital to a specified amount by April 2026, per their license category and authorisation. This strategic initiative is not only aimed at aligning our capital adequacy with regulatory standards but also at surpassing them, thereby fortifying our financial stability and positioning us to capitalise on emerging market opportunities.

“As we move forward, our focus remains on building a controlled, compliant, and profitable organisation. We are committed to maintaining strong governance frameworks, ensuring regulatory compliance, and driving sustainable profitability. These pillars will not only fortify our financial stability but also position us to capitalise on emerging opportunities in the market. I am confident that with our continued focus on these priorities, we will sustain our positive momentum and deliver long-term value to our stakeholders.”

Speaking on the H1 2024 numbers, Acting Chief Financial Officer Oluwagbenga Adeoye said:
“Our H1 2024 financial performance is a testament to the Bank’s resilience because it came on the backdrop of a slow start, occasioned by the high inflationary environment, exchange rate volatility, increased power costs and other factors.

“Nevertheless, we were not entirely insulated from these shocks as Non-Interest Income reduced marginally in H1 2024 by 3% to ₦108.3bn from ₦112.1bn in H1 2023 due to foreign exchange revaluation loss. Operating Expenses increased by 52% to ₦63.8bn against ₦42bn in H1 2023, majorly due to the high inflationary environment, increased power cost and increased non-discretionary regulatory cost. Notwithstanding, our Cost to Income Ratio remains below 50% at 44% compared to 39% recorded in H1 2023 on the back of implementing planned cost-efficiency initiatives.

“The Bank continued to grow its loan book cautiously, with gross loans increasing by 24 percent to ₦1.93 trillion compared to ₦1.55 trillion in December 2023, customer deposits grew marginally by one percent to ₦2.36 trillion from ₦2.34 trillion in December 2023, reflecting the impact of socio-economic pressures on our operating environment.

“In the second half of the year, we will focus on improving efficiency and driving our non-interest income. We are confident that we will finish the year strong and sustain the returns on equity and returns on assets, which stood at 40.6% and 3.68%, respectively.”

Further analysis of the Bank’s performance during the reviewed period showed that its net operating income after impairments rose to N143.6 billion from N108.5 billion in 2023, representing a growth of 32 percent, non-interest income reduced marginally by three percent to ₦108.3 billion from N112.1 billion during the corresponding period of 2023 due to foreign exchange revaluation loss.

Operating expenses moved up remarkably by 52 percent to ₦63.8 billion from N42 billion in the corresponding period of 2023, resulting from the inflationary environment,increase in power costs and increase in non-discretionary
regulatory costs.

In the same vein, gross loans increased by 24 percent to ₦1.93trn from N1.55trn in December 2023 while customer deposits went up marginally by one percent to ₦2.36 trillion from N2.34 trillion in Dec 2023, reflecting the impact of the challenges posed by the socio-economic environment on its operations.

Note to Editors:
About Union Bank Plc:
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is a household name and one of Nigeria’s long-standing and most respected financial institutions.
The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria. The Bank currently offers a variety of banking services to both individual and corporate clients, including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. The Bank also offers customers convenient electronic banking channels and products, including Online Banking, Mobile
Banking, Debit Cards, ATMs, and POS Systems.
More information can be found at: www.unionbankng.com
Media Enquiries: Email mediarelations@unionbankng.com
– ENDS –

Business

Access Bank to Host Pioneering Africa Trade Conference in Cape Town

Published

6 days ago

January 29, 2025

august24admin

Access Bank to Host Pioneering Africa Trade Conference in Cape Town

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank PLC is set to host its first-ever Africa Trade Conference (ATC), a landmark event focused on advancing Africa’s economic transformation under the theme, ‘Empowering Africa Through Trade, Innovation, and Sustainable Growth’. Scheduled for March 12, 2025, in Cape Town, South Africa, the conference is poised to bring together the most influential voices in trade, finance, and policy to address the future of commerce across the continent.

With Africa’s trade finance gap estimated at $81 billion annually, the conference aims to tackle the systemic challenges hindering trade, particularly for SMEs and domestic firms. By fostering collaboration among key stakeholders, the Conference will explore innovative solutions, sustainable trade practices, and strategies for expanding African economies into global value chains.

Roosevelt Ogbonna, Group Managing Director/Chief Executive Officer, Access Bank PLC, emphasised the importance of the Africa Trade Conference, in addressing these pressing issues. “The Africa Trade Conference represents a crucial step in redefining Africa’s trade potential. By creating platforms for dialogue, innovation, and actionable solutions, Access Bank is enabling African businesses to connect and thrive in the global economy.”

Access Bank’s presence across 24 countries globally, including 16 in Africa, provides a unique advantage in facilitating inter- and intra-African trade. The Bank’s growing network positions it as a key player in addressing trade complexities and promoting inclusive growth across the continent.

Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank, highlighted the broader vision of the forum, saying, “The Africa Trade Conference is a platform to not only address Africa’s trade challenges, but to champion the continent’s opportunities. Through strategic partnerships, tailored financial solutions, built on the ethos of sustainability, we are paving the way for Africa’s businesses to take their place on the global stage.”

This flagship event will convene a distinguished line-up of seasoned speakers, and top executives from leading international banks, Development Finance Institutions (DFIs), and captains of industry in Africa.

The ATC will also shine a spotlight on the transformative potential of the Africa Continental Free Trade Area (AfCFTA), which aims to reduce trade barriers, enhance infrastructure, and integrate African economies into global trade networks.

Furthermore, the event will explore critical themes shaping the continent’s economic future, including the transformative role of digitisation and innovation in global trade, solutions for overcoming trade barriers to enhance market access, as well as sustainable trade practices and innovative financing models, thereby providing a comprehensive roadmap for advancing Africa’s position in global commerce. Please visit https://africatradeconference.accessbankplc.com/ for more information.

Business

Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw

Published

6 days ago

January 29, 2025

august24admin

Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Union Bank, Nigeria’s leading financial institution, has kicked off its Save and Win Palli Promo 4campaign on a high note following the announcement of its first set of winners in its inaugural monthly draws.

The first live draw of this season, which took place at the Bank’s Head Office in Marina, Lagos, rewarded 60 customers with ₦100,000 each. Additionally, 300 other winners went home with ₦50,000 worth of gift vouchers during the inaugural live draw, which was conducted transparently and digitally under the supervision of relevant regulatory bodies. The winners cut across the nation.

Speaking at the first monthly draw, Gloria Omereonye, Union Bank’s Area Business Executive for Lagos Island 1, stated, “Union Bank is always dedicated to rewarding customers for their loyalty and financial discipline.

We are pleased that our promo has continued to achieve its noble goals of providing succour to our customers through our gifts and rewards, especially in these economically trying times, while facilitating a sustainable savings culture for future goals and objectives.”

Save & Win Palli Promo is a nationwide campaign designed to reward both new and existing customers with cash prizes. Season 4, which began in December 2024 and runs until May 2025, offers customers the opportunity to win ₦131 million in cash prizes, Motorcycles, Tricycles, Fuel Vouchers, and a star prize of ₦5 million, which will be handed out to three lucky winners at the grand finale.

Open to new and existing customers, the Save and Win Palli Promo requires participants to save a minimum of ₦10,000 and perform a minimum of five transactions monthly to qualify for draws. Monthly winners can receive ₦100,000, while quarterly draws will reward lucky savers with Motorcycles, Tricycles, and other exciting prizes.

Customers who save in multiples of ₦10,000 will increase their chances of winning.

New customers can join the promo by downloading the UnionMobile app to open an account or visiting any Union Bank branch.

Existing customers can reactivate accounts by calling the 24-hour Contact Centre at 07007007000 or visiting a branch.

Business

Access Bank Clinches THISDAY’s ‘Global Bank of the Year’ Award, Aig-Imoukhuede is Named ‘Titan of the Year’

Published

7 days ago

January 28, 2025

august24admin

Access Bank Clinches THISDAY’s ‘Global Bank of the Year’ Award, Aig-Imoukhuede is Named ‘Titan of the Year’

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank PLC (‘the Bank’), the flagship subsidiary of Access Holdings PLC (‘the Company’), has been honoured with the prestigious THISDAY Global Bank of the Year award for 2024, recognising its significant impact on the global banking landscape.

R-L: Roosevelt Ogbonna, Group Managing Director, Access Bank PLC; Tochi Wigwe, Daughter of Herbert Wigwe, former Group CEO, Access Holdings; Maame Saarah Buckman; Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC; Aigbovbioise Aig-Imoukhuede, Managing Director, Coronation Asset Management Limited, and Funke Aigbovbioise Aig-Imoukhuede, at the THISDAY Awards 2025 where Access Bank won Global Bank of the Year award and Aig-Imoukhuede was named Titan of the Year, in Lagos… Monday night

In addition, Aigboje Aig-Imoukhuede, Chairman of Access Holdings, received the distinguished THISDAY Titan of the Year award for his exceptional contributions to the banking sector in 2024.

At THISDAY Awards 2025, Access Bank emerged victorious, surpassing African Export-Import (AFREXIM) Bank and United Bank for Africa (UBA) to claim the coveted title. The prestigious award ceremony, held at Eko Hotels & Suites in Victoria Island, Lagos, marked the 30th anniversary of THISDAY Newspapers and the 12th anniversary of Arise News Channel, with the theme, “When the Going Gets Tough… The Tough Get Rewarded.”

THISDAY Newspapers highlighted Access Bank’s nomination, praising its strategic leadership, rapid expansion, and unwavering commitment to innovation and sustainability. The bank’s leadership in digital banking was also recognised, with Access Bank receiving multiple accolades, including the 2024 Digital Jurist Award for Best Digital Bank.

In addition to its achievements in digital banking, Access Bank has demonstrated a strong commitment to environmental, social, and governance (ESG) principles, earning the 2024 Euromoney Award for Best Bank for ESG in Nigeria and Ghana.
With an expanding international presence in the United Kingdom, Ghana, United Arabs Emirates, China, and several African nations, Access Bank continues to solidify its position as a major global banking player.

Lagos State Governor, Babajide Sanwo-Olu (left) and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, exchanging pleasantries at the THISDAY Awards 2025 where Access Bank won Global Bank of the Year award and Aig-Imoukhuede was named Titan of the Year, in Lagos… Monday night

The bank’s innovative approach is further evidenced by its cutting-edge technological initiatives, including Facepay, Access Closa, the AccessMore mobile app, and Africa Fintech Foundry—further establishing Access Bank as a leader in technological advancements, and underscoring its deserving recognition as Global Bank of the Year.

During his acceptance speech, Access Bank’s Managing Director and CEO, Roosevelt Ogbonna, expressed his gratitude to the public, THISDAY Newspapers, and Arise Media Group for the recognition. He remarked, “This award represents 30 years of hard work of doing things differently, and of building on the legacy of industry giants like Aigboje Aig-Imoukhuede and Herbert Wigwe. We are deeply grateful to our board, management, customers, and stakeholders, who have continuously supported us. This award is for you, and we accept it in your honour.”

In a similar vein, Aigboje Aig-Imoukhuede, along with 11 other influential leaders, was recognised with the THISDAY Titan of the Year award for 2024. Reflecting on his journey, Aig-Imoukhuede shared, “In 1991, Prince Obaigbena and I first met as customer and banker. He told me that anyone fortunate enough to manage his account would one day become a managing director of a bank, and I am thankful that God fulfilled that vision. It is an incredible honour to stand with such esteemed colleagues.”

The star-studded event, which brought together dignitaries from both the private and public sectors, celebrated excellence, innovation, and leadership across industries and the political landscape.