Union Bank has said its profit before tax rose by 12 per cent to N6.9bn as of the end of the first quarter of 2021 from N6.2bn in the corresponding period of 2020.
A statement titled ‘Group unaudited financial statements for the quarter ended March 31, 2021’ on Thursday said that was driven by higher non-interest income and lower operating expenses.
Highlights of the statement said its gross earnings was down by 15 per cent to N36.4bn in the period under review from N42.6bn in Q1, 2020, due to lower interest environment in the Nigeria financial sector.
The statement said net operating income after impairments was relatively flat at N24.3bn in Q1, 2021 from N24.2bn in Q1 2020; while non-interest income rose by 10 per cent to N14.1bn from N12.9bn in Q1 2020, driven by successful debt recovery efforts.
Union Bank said its operating expenses fell by four per cent to N17.3bn from N18bn in Q1, 2020, an outcome of sustained cost optimisation efforts; while non-performing loans ratio was flat at four per cent.
Commenting on the results, the Chief Executive Officer, Emeka Okonkwo, said, “I am pleased to be able to provide the first set of quarterly results under my tenure as CEO following a smooth transition in leadership.
“Despite the challenging economic climate, our bank has maintained a steady performance that we can build on for the rest of the year.
“The bank has responded well to the challenges in the market since the onset of the pandemic. Our overall efforts in Q1 delivered a 12 per cent growth in PBT.
“We are particularly pleased with the consistent growth we are seeing in transaction volumes which validates our digital-led strategy and is delivering returns. By prioritising personalised solutions and enabling self-service, we are attracting transaction-backed deposits and enhancing customer knowledge to better manage risk.”
He said its performance was also supported by strong debt recovery efforts which contributed to growth in non-interest income, enabling it to maintain net operating income at N24.3bn despite the significant reductions on net interest margins across the industry since Q1 2020.
