Union Bank Plc, a Nigerian bank, increased its gross profit by 12.4% in the first nine months of the year to N140.6 billion, from N125.2 billion in the first nine months of 2021 .
The bank stated in its unaudited financial statements obtained by king of investors.
Net operating profit after impairments stood at N76.3 billion, up 7.3% from the N71.2 billion deposited in the corresponding period of 2021. a 37% increase in interest income to N109.3 billion.
Non-interest income, however, fell 32.7% to N28.3 billion due to weak collections. Still, operating expenses remained healthy at N58.1 billion, an increase of 5.2 percent from the N55.2 billion reached in the same period of 2021.
Similarly, customer deposits increased by 12.7% from ₦1.36 trillion in December 2021 to ₦1.53 trillion in September 2022. Gross loans also increased by 10.1% to reach ₦990.3 billion from ₦899.1 billion in December 2021.
The non-performing loan ratio decreased by 50 basis points to 4.2% from 4.7% achieved in the first 9 months of 2021. As the expected profit for the year from continuing operations increased slightly by 14% to ₦18.2 billion from ₦16.0 billion in the first nine months of 2021.
Union Bank recorded a loss of £8.796 billion on the disposal of a subsidiary during the period. Consequently, pre-tax profit decreased by 28.48% to N10.166 billion from N14.215 billion for the same period of 2021.
Profit after tax was N9.207 billion, down 31.5% from N13.443 billion in the corresponding period of 2021.
Commenting on the results, Mudassir Amray, the bank’s CEO, said: “We performed well in the third quarter, with strong profit growth supported by additional net interest income. Our strategy remains on track, with good results across the board.
“This has translated into more consistent top line growth, strong lending pipelines across our businesses and increased lending to key sectors.
“Our performance reflects the continued impact of our strategy, with revenue growth momentum. The progress we have made means we are in a strong position. In 9M 2022, compared to 9M 2021, The Bank’s gross revenue, net interest income and pre-tax profit increased by 12.4%, 59.8% and 14% respectively.
“Looking to the rest of the year, we remain cautious about the external risk environment, believing that the lows of recent quarters are behind us. This confidence, coupled with our focus on strengthening our efficiency, on broader synergies and on a solid cost control, will place the Bank in a more solid position.
Also speaking on the lender’s performance, Chief Financial Officer, Joe Mbulu, said: “Notwithstanding the growth in our deposit book, our focus on optimizing our funding costs has begun to deliver results that have driven profitability from gross income to net income, with a higher net. fund income (after depreciation) for the period.
“Interest income increased by 37% to 109.3 billion naira due to higher earning assets, while non-interest income (NII) decreased by 33% to 28.3 billion naira compared to the previous year, due to a decline in collections of 64.5% (to N4 0.6 billion) during the period.
“We increased our loan portfolio by 10% from N899.1 billion in December 2021 to N990.1 billion at the end of Q3 2022. Customer deposits increased by 12.7% for reach 1.5 trillion naira.
“Our non-performing loan ratio in 9M 2022 was 4.2% while our coverage ratio remains robust at 143.2%.
Operating expenses only increased by 5% from N55.2 billion 9M 2021 to N58 billion due to inflationary pressures. Consequently, our cost/income ratio decreased from 77.6% to 76.1% in September 2022.
“The Bank remains sufficiently capitalized to pursue its growth ambitions with a capital adequacy ratio (CAR) at 15.3%.”