Union Bank declares N12.4billion profit in Q3 2013

Union Bank of Nigeria Plc has declared a N12.4 billion profit-after-tax(PAT) for the third quarter nine-month period ended September 30, 2013.

The Group’s profit for the same period according to an unaudited financial statement was put at N7.6 billion.

Profit-before-tax(PBT) for the bank for the period was N11.7 billion while the Group recorded profit before tax of N6.8 billion.

According to the statement, the Bank recorded gross earnings of N70.2 billion in the third quarter of 2013 as against the N69.9 billion in the corresponding period of 2012 representing an 0.43 percent increase.

Customers’ deposits, which show the level of customers’ confidence equally rose from N522billion in Q3 2012 to N536 billion in Q3 2013.

Further analysis of the bank’s results showed that loans and advances increased by 32 percent from N137 billion in Q3 2012 to N180.6 billion in Q3 2013.

The bank’s shareholders’ funds stood at N188.2 billion compared to N171.7 billion in 2012.

Commenting on the results, the Chief Executive Officer of Union Bank, Mr. Emeka Emuwa, said: “In the 3rd Quarter we continued to grow our core banking business, whilst transforming Union Bank into an institution with improved customer service, as the basis for our increased long-term profitability.

“As part of our core banking strategy and as announced, we are executing the divestment of our non-banking subsidiaries. While we improved the quality of the earnings from our core banking activities”, he also said.

He also added that, “As we develop our long-term strategy and optimise our cost structure, we will continue to reinvest our resources in our people, service delivery and infrastructure to attain our goal of becoming a leading institution in the Nigerian banking community.”

Emuwa noted further that Union Bank’s third quarter results were negatively impacted by the non-banking subsidiaries, particularly by losses in one of the subsidiaries and the effects of the recent developments in the discount house sector.

Also speaking on the results, Chief Financial Officer of the bank, Oyinkan Adewale, revealed that the bank fully absorbed the impact of exposures to discount houses and from non-banking subsidiaries, amounting to N4.075 billion in the period under review.

She said, “Union Bank’s core performance remains stable while cost and efficiency initiatives will continue to support our profits and fund our future investments in people, systems and infrastructure. One-off losses notwithstanding, the Union Bank Group stayed on course”.

One Comment

1. 

   remmy37

   November 6, 2013 at 9:56 am

   Thump up to a bank that was almost killed by the powers that be, good result, with pple like me , things will get better.