By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Union Bank of Nigeria Plc (UBN) on Tuesday said its shareholders have approved the 2014 audited year end accounts at its 46th Annual General Meeting (AGM) held in Abuja.
Emeka Emuwa, group managing director (GMD) of the bank while reviewing the 2014 performance said the lender experienced 28 percent growth in net operating income from N60.9 billion in 2013 to N77.9 billion, while the Group experienced 34 percent growth from N63.9 billion in 2013 to N85.7 billion in 2014 largely due to one-time events, a statement from the bank said.
According to him, the bank grew profit before tax (PBT) by N16 billion, closing the year with N20.7 billion, up from N4.2 billion in 2013; while the group closed at N27.7 billion, up from N3.8 billion in 2013.
“While one-off gains of N6.3 billion from sale of subsidiaries added significant boost to profits, we were able to grow profitability from our core operations, combined with our effective cost management initiatives which stabilized our costs, and kept expenses flat year-on-year. This led to a cost-to-income ratio improvement from 74 percent in 2013 to 68 percent in 2014 for the bank, and from 75 percent to 63 percent for the group (net of restructuring costs),” Emuwa affirmed.
He further affirmed that the bank’s balance sheet remains strong with total assets of the bank and group closing the year at N920.9 billion and N1, 009 billion respectively. “We are pleased to say that we improved shareholder value by increasing Return on Average Equity from 3 percent in 2013 to 10 percent in 2014 for the bank and from 2 percent in 2013 to 13 percent in 2014 for the group,” he added.
Similarly, Earnings per Share (EPS) improved from 30 kobo to 121 kobo in 2014 for the bank and from 37 kobo to 157 kobo in 2014 for the group.
The GMD at Union Bank also highlighted the lender’s priorities for 2015 which includes proactive risk management; driving low cost deposits by leveraging new business model; effective cost management and proactive capital management to ensure regulatory compliance and effective utilization of capital.
In the same vein, the bank launched a new smarter banking center at the Silverbird Galleria in Abuja designed for technology savvy customers who want quick, easy, on-the-go banking.
The bank is expected to roll out three more centers in Lagos in June and more than ten centers around the country before the end of the year.
On his part Udoma Udo Udoma, chairman of Union Bank while addressing shareholders highlighted significant achievements of the bank in 2014 which included: embedding a new business model focused on retail, commercial and corporate banking; strengthening organisation’s capabilities through a culture enhancement program and upskilling of employees; and the establishment of a central processing center.
“These achievements have positioned us on the right trajectory to ensure sustained revenue and profit growth, which will ultimately grow shareholder value, and thus adequately position UBN to regain its position as one of the leading banks in Nigeria,” Udoma affirmed.
However, share price of Union Bank at the close of business on the Nigerian bourse on Tuesday declined 4.80 percent to N9.52 from N10.00 traded the previous session losing 0.48 kobo per share.
