Unon Bank Half Year Revenue Grew To NGN60 Billion

Bank

Union Bank of Nigeria PLC has just released its half year 2016 result showing that its gross revenue for the first half of the year rose by 8.4% to reach NGN60 billion versus NGN55,3 billion last year.

The bank’s interest expenses rose by 4% to NGN44,3 billion versus NGN42,690 billion the company spent last year. This means Union Bank has a positive cost to income ratio of 0.7. The advantage of the ratio is that it gives investors a clear view of how efficiently the firm is being run.

However, impairment charges went up by 195% as it made provision of NGN8,780 billion for impairment within the first half of the year compared to NGN2,973 billion provision for last year.

The bank’s income after impairment charges fell to NGN22,167 billion compared to NGN23,296 billion recorded last year. The bank ended the half year on a positive note as its net profit for the first half of the year rose by 38% to NGN8,761 billion, last year net profit was NGN6,361 billion.

Union Bank is a tier one bank operating as a full-fledged commercial bank. The bank now focuses on retail banking. Its net asset as at the end of the first half of the year was NGN1.1 trillion compared to NGN899 net liabilities.

According to its disclosures, owns majority shareholding in the following company

UBN Property Company Limited: The Company has 5,626,416,051 ordinary shares of N1.00 each of which 39.01% (December 2014 – 39.01%) is held by the Bank. In line with IFRS 10- Consolidated Financial Statement, Union Bank of Nigeria Plc has control over this entity as it has the power, exposure to variability of returns and a strong link between power and variability of returns. The Bank also governs the financial and operating policies of UBN Property Company Limited.

The Bank directly holds 100% holding of Union Bank UK’s 60,000,000 ordinary shares and 99% of its 50,000 deferred shares of GBP1 each and 1% indirect holding through Williams Street Trustees Limited, the nominee company for Union Bank of Nigeria Plc . Union Bank UK Plc was incorporated in December, 2004 as an authorised United Kingdom subsidiary to carry out the business formerly conducted by the London Branch of Union Bank of Nigeria Plc.

Atlantic Nominees Limited-The Bank holds 49,990 (approx. 100%) out of 50,000 ordinary shares of N1 each. The balance of 10 is held by Union Trustees Limited. The Company is a Special Purpose Vehicle of former Universal Trust Bank Plc, one of the banks acquired by Union Bank in 2005. The Company was incorporated to hold interests in landed properties. The carrying value of the investment in Union Property Company Limited is included in ‘assets classified as held for sale.

Till date Atlas Mara, holds 30% stake of the bank. The company paid NGN85.2 billion for the shareholding in 2015 when it sold its stake in Ecobank.

 

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