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Union Bank’s shareholders demand better performance

By on June 24, 2013

Shareholders of Union Bank Plc have demanded improved performance from the board and staff of the bank, even as the board promised to address all the problems confronting the bank.

At the 44thAnnual General Meeting of the bank held in Calabar, Cross River State, the shareholders, though, commended the bank’s return to profitability after loss posted in the previous year, advised that    management and staff should work harder to improve on their performance.

The shareholders also commended the Central Bank of Nigeria appointed management for stabilizing the bank. They commended Union Global Partners Limited, the core investors for their timely recapitalisation of the bank, which salvaged their investment.

In his response, Chairman of the bank, Senator Udoma Udo Udoma assured the shareholders that the board and management had evolved a transformation programme that will tackle all the issues militating against the bank. He also noted all the comments and observations of the shareholders and promised to address their concerns.

“We have come up with initiatives that are necessary to improve service delivery, support planned business growth, improve productivity, create a lean and agile bank, reduce operating cost and ultimately deliver value to all stakeholders,” he assured.

The results for the year 2012 revealed that gross earnings for the bank totalled N96.5 billion, up 35 percent from year-end 2011, while gross earnings for the Group rose by 33 percent to N112.8 billion.  Profit before tax was N8.1 billion, up from a loss of N102.6 billion in the previous year.

The Group recorded profit before tax of N9.1 billion compared to loss before tax of N107.7 billion in 2011.  Profit after tax for the bank was N7.9 billion as against a loss of N76.7 billion in 2011, while profit after tax for the Group was N7.4 billion compared to a loss of N82.6 billion in the previous year.

Earnings per share also improved. The bank recorded 46 kobo in 2012 compared to negative N12.51 kobo in 2011, while the Group recorded 61 kobo as against negative N12.26 kobo the year before.  Customers’ deposits with the bank stood at N482 billion at 2012 year-end, a 21 percent increase from 2011 year-end figures.

Shareholders’ Funds at year-end stood at N171.671 billion. The bank’s total assets grew 7.2 percent to N886.468 billion, while total assets stood at N1.033 trillion.