2024: Union Bank reports 20% growth in H1 PBT
Union Bank of Nigeria has reported a profit before tax of N79.8 billion at the end first half of 2024 financial year ended June 30, 2024.
The amount represents a surge of 20 per cent compared with N66.5 billion reported the same period of 2023.
According to the bank unaudited result the gross earnings moved forward to N333 billion against N210.5 billion during the corresponding period, representing a growth of 58 percent.
The Bank in a statement said the “accomplishment demonstrates the bank’s resilience and commitment to delivering results in uncertain times.”
Commenting on the results, Managing Director and Chief Executive Officer of the Bank, Yetunde B. Oni, 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 per cent to N333bn compared to N210.5 billion in half year 2023. Net Operating Income after Impairments increased by 32 per cent to N143.6 billion from N108.5 billion in the same period of 2023, attributed to enhanced interest income, fees, commissions, and margin expansion. Similarly, we achieved Profit Before Tax (PBT) of N79.8 billion, representing 20 per cent growth compared to N66.5 billion in the first half of 2023.
Speaking on the first half of the 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 per cent to N108.3bn from N112.1bn in H1 2023 due to foreign exchange revaluation loss. Operating Expenses increased by 52 per cent to N63.8bn against N42 billion 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 per cent at 44 per cent compared to 39 per cent recorded in H1 2023 on the back of implementing planned cost-efficiency initiatives.
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 N108.3 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 N63.8 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 N1.93trillion from N1.55trillion in December 2023 while customer deposits went up marginally by one percent to N2.36 trillion from N2.34 trillion in Dec 2023, reflecting the impact of the challenges posed by the socio-economic environment on its operations.
