Union Bank of Nigeria Plc has announced 19% increase in its gross earnings to N208.2 billion from N175.0 billion in 2021.
Profit before tax also rose by 47% to N30.2 billion from N20.5 billion in 2021.
In its financial statements for the year ended December 31, 2022, filed to the Nigerian Exchange (NGX) Limited, the lender attributed this to strong growth in net interest income, which rose by 33% to N59.1 billion from the N44.3 billion achieved a year earlier.
In the period under review, the bank impressed investors with strong revenue growth driven by core business deepening amid a tough operating environment.
The results showed that Union Bank 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.
The Bank also said it invested in strengthening its technology architecture to drive key processes and serve more customers through digital and agent channels.
This saw a 15.7% rise in active users on UnionMobile to 3.8 million users, and active UnionDirect Agents grew by 62.7 per cent to 51,737, leading to an increase in transaction value and volume on UnionMobile by 121% and 20.4%, respectively.
These supported the 9% growth in customer deposits in 2022 to N1.48 trillion from N1.36 trillion in 2021, enabling the lender to increase its gross loans by 11% to N1.0 trillion from N899.1 billion to boost economic activities.
Commenting, the Chief Executive Officer, Union Bank, Mudassir Amray, was quoted as saying that: “Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers.
“On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.”
We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers.
Amray continued: “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.
“We also look forward 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.”
On his part, the Chief Financial Officer, 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% due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5% from 79.4% 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% to N2.79 trillion due to growing loans and advances to customers.
“We expanded our net loan book by 11.5% from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8 per cent to N 1.48 trillion.
“While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our NPL ratio reduced from 4.3% to 4.0%, and the capital adequacy ratio remained within regulatory limits at 14.4%.”
