Union Bank of Nigeria Plc. has announced a profit before tax of N15.7 billion for the financial year ended Dec. 31, 2016.
In its audited result statement issued on Friday in Lagos, the bank’s profit increased by about N800 million from the N14.9 billion posted in the preceding period of 2015.
Its gross earnings went up by eight per cent to ₦126.6 billion, compared with ₦117.2 billion in 2015.
According to the statement, interest income also appreciated by eight per cent to ₦98.0 billion in contrast with ₦90.9 billion in 2015.
It stated that the interest income was driven by loan book growth and improved bank asset yields.
The statement added that interest expense dropped by six per cent to ₦33 billion as against ₦35.2 billion achieved in 2015 due to improved customer funding base; less reliance on expensive interbank funding.
It added that the strategy led to drop in core cost of funds to 5.23 per cent during the period under review from 6.64 per cent in 2015.
The bank’s net revenue before impairment grew by14 per cent to ₦93.6 billion in contrast with ₦81.9 billion in 2015.
The statement said that the bank would launch a rights issue in the second quarter of 2017 to raise up to N50 billion in Tier 1 capitals to accelerate business growth and position as a leading commercial bank in Nigeria.
It added that the additional funding would also allow the bank to maintain compliance with regulatory capital requirements.
Commenting on the results, Emeka Emuwa, the bank’s Chief Executive Officer, attributed the growth to aggressive strategies embarked upon by the company.
“In 2016, we focused on executing our priorities across the different business segments, especially in the retail space, with an aggressive strategy to increase adoption of our alternate channels.
“Our success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of six per cent, compared with 2015.
“Our research led product development strategy, coupled with an up skilled sales force and targeted marketing campaigns, propelled our customer deposit base by 15 per cent,’’ Emuwa said.
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