The surge in NPL put the bank in more danger as its profit after tax remains at the same value of N13.1 billion when compared to the nine months of 2015.
Union Bank’s Non Performing Loans Rise to 34.29%
Union Bank of Nigeria Plc has recorded a 34.29 per cent increase in the Non-Performing Loan (NPL) ratio for the nine months ended 30th September, 2016.
The lender in the result released to the Nigerian Stock Exchange (NSE) in Lagos declared 9.4 per cent NPL for nine months in 2016 from 7 per cent as at December 2015.
Union Bank Plc recorded a slight increase of N6 billion representing 7 per cent in the gross earnings for the nine months of 2016 from N85.4 billion to N91.4 billion.
Net revenue before impairment increased by 20 per cent to N46.4 billion from N38.8 billion in nine months in 2015 which was as a result of the 6 per cent interest income growth and 14 per cent interest expenses growth.
The lender’s net interest margin grew from 8.76 per cent to 9.97 per cent. The bank’s customer deposits surged by 9 per cent from N569.1 billion to N618.30 billion.