Union Bank Grows Profit by 13.35% to N77.45 Billion
Union Bank of Nigeria (UBN) reported a significant growth in profitability in the first half of 2024 on the back of improved topline performance, supported by increase in loan book.
Its profit for the period surged by more than 13% year on year to N77.451 billion, thus reducing the bank accumulated losses. In a abridged financial statement, Union Bank of Nigeria profit rose by more than 13% year on year from N68.331 billion to N77.451 billion in the first half of 2024.
The growth in top line was driven by growth in loan and advances to customers, which inched higher by 22.21% to N1.810 trillion in six months from N1.481 trillion at the end of 2023.
The bank’s gross earnings printed higher at N333.193 billion, according to its financials, which translates to 57.50% year on year growth from N211.550 billion in the comparable period in 2023.
The top line was boosted by strong net interest income driven by interest rate repricing after monetary policy rate hike. However, non-interest related income generated by the group weakened due to pressures on other sources of income.
In the first half of 2024, Union Bank achieved about 182% year on year growth in net interest income, which settled at N81.212 billion, from N28.842 billion in the comparable period in financial year 2023.
On the downside, impairment charge on credit losses increased significantly as the bank continues to navigate Nigerian tough economic environment. Its numbers showed that impairment charge on credit losses surged by 45.84% to N45.769 billion in the first half of the year from N31.383 billion.
Though net fees and commission income decreased, the bank reported a significant year on year growth in net trading income in the period. Its financials showed that net fee and commission income fell from N10.431 billion to N9.38 billion in first half of 2024.
Net trading income spiked to N275.475 billion, up by about 744% year on year from N32.642 billion 12 months earlier. Its cash recovery also decline in the period as other operating income reversed trend.
The bank net non-interest income plunged to N108.361 billion, down by 6.1% year on year from N115.347 billion in the first half of 2023.
Due to increased operating expenses, Union Bank’s profit before tax settle at N79.919 billion in the first half of the year, from N70.073 billion in the equivalent period in 2023.
Details from the results posted showed that Union Bank of Nigeria’s total equities grew by about 13% year on year to N416.317 billion in the first half of 2024 from N370 billion at the end of financial year 2023. #Union Bank Grows Profit by 13.35% to N77.45 Billion
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