BY FESTUS OKOROMADU, ABUJA
Union Bank Plc on Wednesday announced the release of its audited financial statements for the year ended 31st December 2022, which reflects strong financial performance despite the macroeconomic headwinds.
According to the report, gross earnings grew by 19 percent to ₦208.2 billion in 2022 as against ₦175.0 billion in 2021, driven by strong growth in net interest income which rose by 33 percent to ₦59.1 billion from ₦44.3 billion in 2021, backed by growth in earning assets.
Net Operating Income after impairments increased by 10 percent to ₦110 billion when compared to ₦99.7 billion in 2021.
The management of Union Bank has attributed the strong performance to disciplined execution of strategies.
The bank posted a marginal growth of 0.4 percent in operating expenses which stood at ₦79.4 billion against ₦79.2 billion in 2021, reflecting tight cost control despite inflationary pressures.
Profit before tax grew by 47 percent to ₦30.2 billion in the reporting period from ₦20.5 billion in 2021.
The bank was active in its lending business as its gross loans portfolio rose by 11 percent to ₦1.0 trillion up from ₦899.1 billion in the corresponding period of 2021. Similarly, customer deposits went up 9 percent at ₦1.48 trillion against ₦1.36 trillion in 2021.
Two key factors were said to have contributed to the bank’s operations namely, improved digital and retail service.
The bank hinted that it invested in strengthening her technology architecture to drive key processes and serve more customers through digital and agent channels.
Consequently, active users on UnionMobile increased by 15.7 percent to 3.8 million users, and active UnionDirect Agents grew by 62.7 percent to 51,737.
Commenting on the results, managing director/chief executive officer, Union Bank Plc, Mudassir Amray, said: “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.”
While assuring stakeholders of better performance in the current year, he said, “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.
Speaking on the 2022 financial year numbers, chief financial officer, 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.”
