Union Bank has announced N208.2 billion in earnings in 2022, representing 19 per cent of ₦175.0 billion recorded in 2021.
The growth in earnings is attributed to its Net Interest Income which swung upward by 33 per cent, reaching ₦59.1 billion above the ₦44.3 billion achieved in 2021.
In the bank’s 2022 audited account, the Net Operating Income after impairments rose 10 per cent to ₦110 billion from ₦99.7 billion in 2021 while Profit before Tax went up by 47 per cent to ₦30.2 billion from ₦20.5 billion in 2021.
Its Operating Expenses grew marginally by 0.4 per cent to ₦79.4 billion over ₦79.2 billion in 2021 reflecting tight cost control despite inflationary pressures.
During the year also, Union Bank expanded lending to vital economic sectors of opportunity, and gross loans went up 11 per cent at ₦1.0 trillion above ₦899.1 billion recorded in December 2021.
It also grossed ₦1.48 trillion in Customer Deposits, indicating 9 per cent over ₦1.36 trillion in December 2021 following the expansion of its product base and digital channels.
Union Bank in the year also, strengthen its technology architecture to drive key processes and serve more customers through digital and agent channels. This is reflected in the growth of active users, increasing to 3.8 million users, rising 15.7 per cent while active UnionDirect Agents grew by 62.7 per cent to 51,737.
This has helped to increase transaction value and volume on UnionMobile by 121 per cent and 20.4 per cent, respectively.
In 2022, Union Bank launched a chatbot that enabled real-time interactions with customers and it was able to resolve 1.3 million customer complaints, demonstrating its effectiveness in streamlining the complaints resolution process.
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The Bank also grew its retail deposits by 14 per cent to N675.8 billion from N594.9 billion in 2021 and this was through initiatives like Save & Win Palli Promo 2 through which over 611 customers were rewarded with ₦55.5 million.
Another initiative is the Target Savings Campaign during which 596 customers were rewarded with ₦26 million in its flagship target savings campaign and closed out its five-year Target Savings Product (TSP) – UnionKorrect Qatar that rewarded 10 customers with cash prices of ₦5 million, and 375 customers with sports jerseys.
Union Bank managing director, Mudassir Amray, said the bank recorded strong performance
despite the macroeconomic headwinds of 2022.
“We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers. On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions” he stated.
He assured that the bank in 2023, will remain focused on executing its strategic initiatives, which are centered on pursuing additional opportunities to diversify revenue sources while strengthening its core business.
“We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities”.
Speaking on the FY 2022 numbers, Chief Financial Officer Joe Mbulu said the bank’s financial performance is a testament to the disciplined execution of its plans for the year and resilience against all odds.
“While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage. Operating expenses increased marginally by 0.43 percent due to increased non-discretionary regulatory costs.
“Our cost-to-income ratio dropped to 72.5 percent from 79.4 percent in 2021 due to cost-control measures implemented during the year. The Bank’s balance sheet remains strong, with total assets increasing by 8.8% to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5% from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8% to N 1.48 trillion”.
The bank also grew its risk assets, resulting in the reduction of the NPL ratio from 4.3 percent to 4.0 percent while the capital adequacy ratio remained within regulatory limits at 14.4 percent.
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