Union Bank has disclosed a profit before tax (PBT) of N15.5 billion on gross earnings of N163.8 billion for the financial year ended December 31, 2017.
The Chairman of the Bank, Cyril Odu, who presented the Group’s annual report to shareholders at the 49th Annual General Meeting which held in Abuja on Tuesday, disclosed that the lender had a non-performing loan (NPL) ratio of 19.78 per cent of a total N517.103 billion at the end of the financial year under review.
He listed the other highlights of the bank’s financial performance in 2017 to include, a growth in income by 25 per cent to N124.5 billion from N99.7 billion in 2016, as a result of the impact of naira devaluation on the foreign currency denominated loan book, government securities yields and loan book re-pricing.
Odu also disclosed that non-interest revenue increased by 31 per cent to N39.3 billion from N29.9 billion in 2016, driven by improved fee and commission income, trading income and a more effective debt recovery machine.
Other highlights of the year’s performance showed that operating expenses increased by five per cent to N65.1 billion from N62.0 billion in 2016 due to inflationary pressures and the impact of devaluation on technology and network investments.
According to the lender’s annual reports and accounts’ figures, its gross loans grew by five per cent to N560.7 billion compared to N535.8 billion in the previous year while customer deposits rose by 22 per cent to N802.4 billion, up from the N658.4 billion recorded in 2016.
The report indicated that the growth was led by investments in customer-led products, recently upgraded alternate channels as well as a strengthened brand.
