Union Bank’s profit fell by 56% in Q2

Bank

Union Bank of Nigeria plc in its financial report for second quarter 2017 is reporting NGN4.3 billion net profit compared to NGN9.8 billion reported same period 2016, which represents 56% fall year on year comparison.

The bank said its interest income increased to NGN31.0 billion fromNGN22.8 billion in the previous year while interest expense increased to NGN13.9 billion from NGN6.7 billion in the year before.

The bank’s net interest income rose to NGN17.0 billion in contrast to NGN16.0 billion in the fiscal year 2016 while operating income was NGN20.8 billion against NGN18.3 billion in 2016.

Impairment charges for the period fell to NGN5.0 billion compared to NGN7.6 billion disclosed same period last year.

Company Profile

Union Bank is a large commercial bank, serving individuals, small and medium-sized companies, as well as large corporations and organizations. In July 2009, it was rated the 556th largest bank in the world and the 14th largest bank in Africa. As of June 2012, the bank’s asset base was estimated at US$6.784 billion (NGN:1.049 trillion). The shareholders’ equity at that time was estimated at US$1.22 billion (NGN:188.4 billion).

The bank was founded in 1917 as Colonial Bank. In 1925, Barclays Bank acquired Colonial Bank, changing the bank’s name to Barclays Bank (Dominion, Colonial and Overseas) or Barclays Bank (DCO). In 1969, Barclays Bank DCO was incorporated in Nigeria, as Barclays Bank of Nigeria Limited, to comply with new banking laws enacted in 1968.

In 1971, the shares of the bank stock were listed on the Nigerian Stock Exchange. In the same year, 8.33% of the bank’s shares were offered to Nigerians. The following year, the Federal Government of Nigeria acquired 51.67% ownership of the bank, leaving Barclays Bank Plc. of London with 40% ownership. In 1979, that 40% was sold to Nigerian individuals and businesses to comply with then recently enacted banking and investment laws. The bank changed its name to Union Bank of Nigeria Plc,to reflect its new ownership structure.