UNION Bank of Nigeria Plc stated its gross earnings increased by 18 percent to N42.9bn in the first quarter of 2022, from N36.4bn in the corresponding period of 2021.
The bank, in a statement on its unaudited financial statements for the quarter ended March 31, 2022, said the growth was driven by strong earning assets from on-lending to key sectors in the Nigerian economy.
Commenting on the results, the Chief Executive Officer, Emeka Okonkwo, said, “In 2022, we renewed our focus on productivity and ensuring we fully leverage the strength of our digital channels, regional network and talent to maximise the bottom line.
“Our efforts are gaining momentum and notwithstanding a challenging economic climate in Q1 2022, our net interest income after impairment grew by 27 per cent compared to the same quarter in 2021 from N10.1bn to N12.9bn.
“Gross earnings are also up by 18 per cent to N42.9bn against N36.4bn in Q1 2021. This was bolstered by improved asset yields, treasury trading income and revenues from our alternate channels.
“We are steadily seeing increasing customer adoption with a 36 per cent YoY increase in active users on UnionDirect, our agency banking network, and increasing transaction volumes with a 20 per cent YoY growth across our digital channels.”
The chief executive officer disclosed that the bank’s interest income grew by 41 per cent, from N22.2bn to N31.4bn, as its earnings asset base expanded with a more viable loan portfolio.
He said, “Our NPL ratio is flat at 4.3 per cent (from December 2021), well within the regulatory limit, while the cost to income ratio dropped from 79.4 per cent in December 2021 to 73.9 per cent in March 2022. We will continue to drive cost optimisation to ensure consistent improvement of inefficiencies.
“With a Capital Adequacy Ratio (CAR) of 15.6 per cent, our capital position remains strong.”
