Business

Union Bank Reports 461% Growth in PBT in Q3, 2023

Published

11 months ago

December 30, 2023

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Union Bank Plc has announced a significant financial performance for the third quarter ending September 30, 2023. The bank reported a profit before tax (PBT) of N102.3 billion, reflecting an impressive growth of 461.1 percent compared to the PBT of N18.2 billion in the corresponding period of 2022 August24news.com has learnt.

This notable achievement is attributed to a surge in gross earnings, which reached N309.1 billion, marking a 120 percent increase from N140.6 billion in 2022.

The financial highlights further showed a substantial rise in non-interest income, soaring to N144 billion from N28.3 billion in the same period of 2022, denoting an exceptional growth of 409 percent. Net operating income after impairments also experienced a remarkable upswing by 121 percent, reaching ₦168.7 billion, compared to N76.3 billion in 2022.

Operating expenses increased by 14.2 percent to ₦66.4 billion, attributable to factors such as the inflationary environment, elevated power costs, and non-discretionary regulatory expenses. Despite this, the bank demonstrated a robust performance with gross loans escalating by 38.1 percent to ₦1.38 trillion, and deposits witnessing a substantial 30 percent increase, reaching ₦1.93 trillion, a testament to the unwavering confidence of customers in the brand.

Commenting on the results, Mudassir Amray, Managing Director and CEO, expressed satisfaction with the strong financial results, citing a record-breaking revenue increase and impressive profitability figures. He attributed these achievements to the bank’s strategic positioning of the balance sheet, effective liability generation, and the creation of responsible risk assets.

Amray emphasised that the growth in revenue and profitability exceeded expectations, underscoring the success of the wholesale banking strategy. Non-interest income saw a phenomenal surge of 409 percent, reaching ₦144 billion. The CEO highlighted the bank’s customer-centric approach, robust product portfolio, and innovative channels as key contributors to the 30 percent growth in customer deposits.

The bank remains well-capitalized with a capital adequacy ratio (CAR) of 15.4 percent, and non-performing loans remain below the regulatory limit at 3.7 percent. Amray expressed optimism about the future, citing strong business fundamentals, a customer-centric approach, and a dedicated team that positions the bank to seize opportunities in the evolving market.

In addressing the merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion, with all regulatory requirements being fulfilled. He believes that the merger will further strengthen the bank’s position and financial performance.

He said: “We remain optimistic about the future and are confident in our ability to sustain momentum. Our strong business fundamentals, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly evolving market. On the merger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalisation of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.”

“Net operating income after impairments increased by 121 percent to ₦ 168.7 billion from ₦76.3 billion in September 2022 on the back of increased net revenue across our key business segments – corporate, retail and SME. Although our operating expenses increased by 14 percent to ₦66.4 billion compared to ₦58.1 billion in September 2023, we significantly improved our Cost to Income Ratio to 39.3 percent from 76.1 percent recorded in September 2022. This improvement was due to our effective management of costs, implementation of efficiency measures, optimisation opportunities, and strong revenue growth. The high inflationary environment, non-discretionary regulatory costs, and power costs mainly caused the increase in operating expenses.

“The Bank maintained a solid balance sheet position as Gross Loans grew strongly by 38.1 percent to ₦1.4 trillion compared to ₦.1.0 trillion in December 2022 and Customer deposits by 30 percent on the back of increased New-to-Bank customers, sales promotion, and product patronage. Given the unwavering confidence our customers have bestowed on us, we are confident of finishing the year strong. The Bank will continue to invest in technology to improve customer interactions across our channels and drive efficiency.”

//Ends

Notes to Editors:
About Union Bank of Nigeria, PLC.
Union Bank was established in 1917 and is one of Nigeria’s longest-standing and most respected financial institutions. We offer a portfolio of banking services to individual, SME, public, commercial, and corporate clients, and our vision is to be Nigeria’s most reliable and trusted partner.

Our offerings include savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. These services are provided through our digital channels, including online banking, mobile banking, debit cards,point-of-sale terminals, and an extensive network of over 281 sales and service centres and 823 automated teller machines spread across Nigeria.

Following receipt of all regulatory approvals, Titan Trust Bank (TTB) acquired all the issued shares of Union Bank of Nigeria. TTB is majority owned by TGI Group, a Nigerian conglomerate.

Union Bank employs all its resources to achieve its mission to make lives better by delivering the simplest, smartest solutions and guaranteeing the best experience across its various touch points, with a strategy focused on the right talent, optimised processes and platforms, robust technology, and a re-energised brand.

Business

Opay Partners with Dolly Children Foundation to Equip Lagos Pupils with Essential Learning Materials

Published

3 hours ago

November 21, 2024

august24admin

Opay Partners with Dolly Children Foundation to Equip Lagos Pupils with Essential Learning Materials

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Opay Digital Services Limited, a leading provider of digital financial solutions, in collaboration with the Dolly Children Foundation (DCF), has brought smiles to the faces of over 850 pupils in Lagos State. Under the banner of DCF’s “Back to School Project,” the partnership provided school bags, exercise books, and other essential learning materials to students in Jubril Martins Memorial Primary School, Agege, Issa Williams Primary School, and Anwar-ul Islam Primary School, Agege.

Speaking at the event, Itoro Udo, Corporate Social Responsibility Project Manager at Opay, emphasized the company’s commitment to supporting education and community development. “We are not just any digital bank; we are Opay—a bank that integrates CSR into its core values.

This partnership with the Dolly Children Foundation underscores our commitment to empowering communities. By easing the burden on parents, we aim to ensure these children can focus on their education and build a brighter future,” Udo stated.

The initiative, rooted in the shared vision of both organizations, aims to address critical gaps in access to quality education for underserved children. Adedolapo Osuntuyi, Founder of the Dolly Children Foundation, highlighted the foundation’s enduring commitment to education: The only tool you have to stop the cycle of poverty is education.

As an organization, we are therefore committed to making sure all children attend and stay in school. This intervention guarantees that students remain interested and involved. Our goal of giving resources to kids in need is being furthered by our partnership with Opay.

Mr. Kehinde Bukola James, Head of Human Resources Management and Administration, also attended the occasion on behalf of Education Secretary Mrs. Catherine Ogunyomi.

He expressed gratitude to Opay and DCF for their kindness, pointing out the important influence the donations had on the students’ academic paths. Many of these kids come from households that find it difficult to buy even the most basic necessities.

In addition to helping the students, such initiatives give the community hope. In order to meet urgent educational requirements, we invite additional organizations to collaborate,” James said.

By establishing a benchmark for significant corporate social responsibility, this partnership between Opay and the Dolly Children Foundation demonstrates the effectiveness of teamwork in tackling societal issues.

Business

MTN can drive Nigeria to a $1 trillion economy” says CEO, Kari Toriola

Published

16 hours ago

November 20, 2024

august24admin

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

MTN can drive Nigeria to a $1 trillion economy” says CEO, Kari ToriolaCEO of MTN Nigeria, Karl Toriola has said that the organization can drive Nigeria towards a $1 trillion economy.

He made this statement at the CWG Africa Texcellence Conference 3.0, highlighting the company’s evolution from a traditional telecom provider to a forward thinking technology company.

“The shift Telco to TechCo represents a massive opportunity for Nigeria. By embracing digital, investing in infrastructure and fostering innovation, Nigeria can accelerate its journey toward becoming a $1 trillion economy”, he said, emphasizing MTN’s vision to drive Nigeria’s economy, with a focus on strengthening community connectivity, promoting financial inclusion, and empowering businesses nationwide.

He noted the telecommunications industry’s contributions to Nigeria’s economy, saying “The telecommunication sector has been a critical sector of economic growth in Nigeria, contributing roughly 14% GDP”.

Toriola detailed MTN’s dedication to reshaping Nigeria’s digital future through key initiatives such as SG deployment, advancements in fintech, and the integration of artificial intelligence.

“The telecommunication sector has been a critical sector of economic growth in Nigeria, contributing roughly 14% GDP. At MTN Nigeria, we are undertaking a transformative shift from a telecommunications provider to a technology company.

While this transition is a significant challenge with its own risks, it presents immense opportunities, especially with the launch of 5G technologies.

We are moving to revolutionize connectivity nationwide by creating urban centers, providing fixed broadband solutions for businesses and homes, creating a foundation for major advancements”, he said.The MTN Chief Executive officer highlighted some of the company’s present digital solutions and initiatives contributing to Nigeria’s digital economy, including MoMo PSB, Ayoba and MTN play, while also emphasizing the power of 5G in driving economic development.

“The low latency and high- speed capabilities of 5G open up exciting possibilities in areas such as the internet of Things (IoT) and artificial intelligence (At), expanding our reach into sectors like healthcare.

Mobile money services are also at the forefront of our transformation from a Telco to a TechCo, as we aim to meet evolving consumer demands and build new business cases in financial solutions”.

He also noted the ongoing construction of MTN’s data center, which will enable the ICT firm to provide extensive infrastructure and storage services for various businesses.

Karl Toriola’s submissions at the Texcellence Conference indicated that MTN’s transition from Telco to TechCo goes beyond business solutions, also forming part of the firm’s strategic efforts to enhance Nigeria’s economic growth.

Business

ZENITH BANK HOLDS 4TH EDITION OF ANNUAL TECH STARTUP PITCH COMPETITION

Published

17 hours ago

November 20, 2024

august24admin

ZENITH BANK HOLDS 4TH EDITION OF ANNUAL TECH STARTUP PITCH COMPETITION

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Fourth Edition of the Zenith Bank Tech Fair, tagged “Future Forward 4.0: Embedded Finance, Cybersecurity & Growth Imperatives – The Impact of AI”, is set to hold on Thursday, November 21, 2024, at the Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos, from 8.00 a.m. to 6.00 p.m.

The fair will showcase leading technological innovations that cut across Artificial Intelligence, Cybersecurity, Risk Management, Compliance, Financial Intelligence, Cloud Computing, and Communication Technologies, among others.

The event will also feature a Start-up Pitch Competition – Zecathon – to identify innovative startups, panel discussions, masterclasses and exhibitions.Among the rich lineup of activities, the event will feature opening remarks by Jim Ovia, CFR, Founder and Chairman of Zenith Bank and a welcome address by Dame (Dr.) Adaora Umeoji, OON, Group Managing Director of Zenith Bank Plc.

There will also be a goodwill message to be delivered by the Vice President of Nigeria, His Excellency, Sen. Kashim Shettima and the Governor of Lagos State, His Excellency, Mr. Babajide Sanwo-olu.

The keynote address, “Banking Transformation in a Digital World “, will be delivered by Robin Speculand, a renowned Strategy & Digital Implementation Specialist. Other prominent IT practitioners who represent top global brands will make presentations.

These include; Danillo McGarry, Global Expert in Digital Transformation & AI; Jania Okwechime, Partner, Africa, AI & Data, Deloitte and Rupert Nicolay, Director, Microsoft Worldwide Financial Services, amongst others.The panel discussion which has Wole Odeyele, Client Technology Lead for Microsoft Inc. as its host, will feature six discussants including Ada Jabaru, Founder & Director, Nistad Limited; Funke Opeke, Founder & Chief Executive Officer, MainOne; Guy Futi, Chief Executive Officer, Orda; Dr Auwal Adam Sa’ad, Founder, ZamzamPay; Kashifu Inuwa Abdullahi, Director General, National Information Technology Development Agency (NITDA), and Engr. Bisoye Coker-Odusote, Director General/Chief Executive Officer, National Identity Management Commission (NIMC).

The masterclass will be divided into seven (7) different classes, and facilitated by key industry players that cut across renowned tech giants such as: Microsoft, Oracle, CyberSoc, IBM, Google, Huawei & Amazon Web Services.To register and participate, visit www.zenithbank.com/techfair. The fair will be live on Zoom and streamed on the bank’s social media pages.