Union Bank’s annual profit grows to N25.4bn
Union Bank of Nigeria Plc has posted an increase of 2.8 percent in its profit before tax for the 2020 financial year, compared to the previous year.
Its pretax profit rose to N25.4 billion in 2020 from N24.7 billion in 2019, according to its financial statements released on Thursday.
The lender’s gross earnings, however, fell by 1.9 percent to N156.9 billion from N159.9 billion in 2019.
It said gross loans was up 23.8 percent to N736.7 billion (N595.3bn in FY 2019) driven by targeted lending to key sectors of the economy.
Union Bank said its customer deposits increased by 27.6 percent to N1.13 trillion from N886.3 billion in 2019, reflecting its agility in delivering a compelling range of products to customers during the pandemic and increased adoption of its digital channels.
It said non-performing loans ratio was down to four percent from 5.8 percent in 2019, driven by a disciplined recoveries strategy (N7.2bn in 2020), a more robust loan book and key restructurings to support customers during the pandemic.
The Chief Executive Officer, Union Bank, Emeka Emuwa, said, “The bank has delivered a strong set of results notwithstanding the impact of COVID-19 on our operations and the wider economy, enabling the Board of Directors to continue to return value to shareholders with a proposed dividend payment for the second year in a row.
“This demonstrates the strong foundations we have built, as we continue to deliver against our target of becoming a leading financial institution in Nigeria.”
He added, “As I retire following eight years of rebuilding and repositioning this storied institution, I am convinced that with the excellent management team and a clear strategy in place, Union Bank is well-positioned to continue to compete and deliver value to its shareholders.”
