Union Bank of Nigeria (UBN) Plc has released its Q3 financial statement for 2020 where it recorded growths.
BizWatchNigeria reports that Union Bank is one financial institution that has invested heavily in customer-led products and digital channels and this has reflected in its results.
According to the CEO of Union Bank, Mr Emeka Emuwa, the achievement “reflects increasing customer loyalty and our intense retail drive. Our customer acquisition strategy has been reinforced by the versatility of our digital platforms and channels which continue to drive customer satisfaction.”
Here are 7 things to know about Union Bank’s 2020 Q3 result:
1. The bank recorded growth in its gross earnings which rose by six per cent to N118.8 billion in Q3 2020 from N111.9 billion the preceding year.
2. The bank added over 600,000 customers, deepening its wallet share of existing customers despite the harsh operating environment in 2020 generally. To this end, customer deposits increased by 28 per cent to N1.1 trillion by September 2020 as against N886.3 billion in December 2019.
3. The bank said its Interest income increased marginally from N84.9 billion to N85.4 billion while its Net interest income before impairment rose by 15 per cent to N41.7 billion as against N36.4 billion in third quarter 2019, driven by increase in earnings assets and lower interest expense.
4. The bank also reported that its non-interest income rose by 23 per cent from N27.1 billion to N33.4 billion, driven largely by increased trading income and asset revaluation gains while its Net operating income inched up from N68.7 billion to N69.3 billion.
5. Union bank said its Operating expenses was flat at N53.4 billion in 2020 as against N53.2 billion in 2019.
6. It said its Profit before tax inched up by two per cent from N15.5 billion to N15.9 billion.
7. The balance sheet showed that gross loans rose by 14 per cent to N678 billion by September 2020 from N595.3 billion in December 2019, which the bank attributed to the impact of its targeted lending to the real sector.