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Nigeria’s Union Bank Sustains Profitability In 2014 Despite PAT Drop

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Union Bank of Nigeria has reported a 33 percent drop in profit after tax for the half year ended June 30, 2014, but has maintained “strong underlying performance and sustainable profitability.”

The bank recorded a profit after tax of N9.4 billion ($58.1 million) in the second quarter of 2013, but dropped to N6.3 billion ($39 million) in 2014.

“The second quarter of the year saw the continued implementation of our transformation initiatives, which are delivering results,” said Emeka Emuwa, Group Managing Director and Chief Executive of Union Bank.

Emuwa, who took over as GMD in 2012 said the Bank has continued heavy investments in its technology infrastructure for improved operations and customer service delivery. The Bank also continues to invest in people, he added.

“We remain focused on our long term strategic priority of ensuring banking becomes simpler for all our clients, whether retail, corporate or commercial,” the GMD said.

Union Bank has also remain focused on driving the key sectors of Nigeria’s economy, especially the oil and gas industry, which in part has seen its loan book rise by 55 percent in the past one year.

The Bank had in compliance with Central Bank of Nigeria’s (CBN) Regulation 3 on the Scope of Banking Activities and Ancillary Matter issued in 2010 that says banks should focus on core banking activities, completed the sale of four subsidiaries. Two other divestment is close to completion, according to the bank’s Chief Financial Officer, Oyinkan Adewale.

“The Bank is aggressively focused on recoveries, with N3.5 billion ($22 million) recovered in the first half of 2014 versus N1.5 billion ($9.3 million) for the same period in 2013.”

Article Credit: Ventures-africa

Updated 5 Years ago

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Tags:     Union Bank of Nigeria     Emeka Emuwa     CBN     Oyinkan Adewale