Union Bank of Nigeria Share Price Rises 13%

Union Bank of Nigeria Share Price Rises 13%

Union Bank of Nigeria’s share price gained 13%, thus helped pushed the banking index upward in the just concluded week.  The recently acquired Tier 2 lender is in the midst of effecting mandatory takeover of its non-controlling interest from the local bourse.

This explains in part the recent bullish run on the bank’s stock which printed at N6.50.  With 29.121 billion shares outstanding, Union Bank of Nigeria’s market capitalisation closed at N189.285 billion on Friday,

In the recent financial statement for the 9-month of 2022, the bank raised its profitability by about 17% to N18 billion from N15.421 billion in the comparable period in 2021.

Its gross earnings printed higher at N141.534 billion from N125.369 billion in 12 months, driven by increased appetite for loans and advances to customers. The bank’s profitability was supported by a high-interest rate environment which filtered into much healthier interest income.

Though interest expenses on funds increased but at a slower pace when compared with interest income growth, thus resulting in a much healthier growth in net interest income which printed at N50.622 billion, translating to more than 59% surge when compared with N1.782 billion achieved 12-month earlier.

On the other side, operating expenses jumped 5.26% year on year amidst higher exposure to rising inflation in the Nigerian market despite efforts to reduce staff payroll costs. READ: Union Bank Rating Upgraded to Stable after Bonds Deal

Overall, Union Bank of Nigeria’s total assets expanded moderately amidst management’s decision to deleverage the balance sheet by reducing its borrowed fund by 30%. Its unaudited financial statement for 9-month indicates that total assets printed at N2.662 trillion, up 2.58% from N2.595 trillion at the beginning of the year.

Union Bank of Nigeria earned 40 kobo on every share deployed for operation in the third quarter, up moderately by 5% when compared with 38 kobo reported in the comparable period in 2021. #Union Bank of Nigeria Share Price Rises 13%