N42.9 Billion Earnings Recorded By Union Bank In Q1 2022

Union Bank of Nigeria Plc has released its financial result for Q1 2022, reflecting an 18% increase in its gross earnings from N36.4bn in the corresponding period of 2021 to  N42.9bn in the first quarter of 2022.

The bank said in a statement on the Group’s unaudited financial statements for the quarter ended March 31, 2022, that this was driven by strong earning assets from on-lending to key sectors in the Nigerian economy

The Chief Executive Officer, Emeka Okonkwo, commented on the results, saying “In 2022, we renewed our focus on productivity and ensuring we fully leverage the strength of our digital channels, regional network, and talent to maximise the bottom line.

“Our efforts are gaining momentum and notwithstanding a challenging economic climate in Q1 2022, our net interest income after impairment grew by 27 percent compared to the same quarter in 2021 from N10.1bn to N12.9bn.

“Gross earnings are also up by 18 percent to N42.9bn against N36.4bn in Q1 2021. This was bolstered by improved asset yields, treasury trading income, and revenues from our alternate channels.

“We are steadily seeing increasing customer adoption with a 36 percent YoY increase in active users on UnionDirect, our agency banking network, and increasing transaction volumes with a 20 percent YoY growth across our digital channels.”

The chief executive officer disclosed that the bank’s interest income grew by 41 percent, from N22.2bn to N31.4bn, as its earnings asset base expanded with a more viable loan portfolio.

“Our NPL ratio is flat at 4.3 percent (from December 2021), well within the regulatory limit, while the cost to income ratio dropped from 79.4 percent in December 2021 to 73.9 percent in March 2022.

"We will continue to drive cost optimisation to ensure consistent improvement inefficiencies.

“With a Capital Adequacy Ratio (CAR) of 15.6 percent, our capital position remains strong.”