Union Bank of Nigeria (UBN) Plc, has declared a growth of 47 per cent translating to N30.2 billion in its pre-tax profit for the year ended December 31, 2022.
The bank’s audited results released on the Nigerian Exchange Limited showed strong financial performance despite macroeconomic headwinds even as the bank also maintained consistent success due to the disciplined execution of its go-to-market strategy focused on deepening its core business while exploring new areas of opportunity to acquire, engage, and retain customers.
Union Bank recorded gross earnings of N208.2 billion, an increase of 19 per cent from N175 billion in 2021, driven by strong growth in net interest income.
Net interest income up 33 per cent to N59.1 billion compared to N44.3 billion in 2021 driven by growth in earning assets, while net operating income after impairments rose by 10 per cent from N99.7 billion in 2021 to N110 billion.
Profit before Tax rose by 47 per cent to N30.2 billion as against N20.5 billion in 2021. Gross loans for the period under review stood at N1.0 trillion, higher than N899.1 billion in December 2021, while customer deposits up nine per cent at N1.48 trillion higher than N1.36 trillion in December 2021.
Speaking on the results, MD/CEO of Union Bank, Mudassir Amray, said: “despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators.”
Amray added that, “in 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business.
to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities.”
He stated that, “as we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them.”
Speaking on the full year 2022 numbers, chief financial officer of Union Bank, Joe Mbulu said: “our financial performance is a testament to the disciplined execution of our plans for the year and resilience against all odds. While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage.
“Operating expenses increased marginally by 0.43 per cent due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5 per cent from 79.4 per cent in 2021 due to cost control measures implemented during the year. The Bank’s balance sheet remains strong, with total assets increasing by 8.8 per cent to N2.79 trillion due to growing loans and advances to customers.”
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