Union Bank of Nigeria Plc, has released its audited financial statements for the year ended 31st December 2021 which reflects resilient revenue growth in the face of macroeconomic headwinds. With a sustained steady performance as a result of increased customer engagement from an enhanced operating and go-to-market model and gains derived from its digital penetration strategy.
Highlights of the audited financial statement shows that gross earnings was up by 8.9% to N175.0 billion in 2021 as against N160.7 billion in 2020, driven by strong non-interest income. Non-interest income was up by 26.7% to N55.7 billion above N44.0 billion in 2020.
Net operating income after impairments was down by 3.6% to N99.7 billion as against N103.4 billion in 2020. Profit before tax was down by 19.3% to N20.5 billion compared with N25.4 billion in 2020. Operating expenses marginally grew by 1.5% to N79.1 billion compared with N78.0 billion in 2020, reflecting tight cost control despite inflationary pressures.
Gross loans was up by 22% at N899.1 billion against N736.7 billion in December 2020, as the bank expand its lending to key economic sectors of opportunity. Customers deposit was up by 20.4% to N1.4 trillion above N1.1 trillion that was recorded same period in December 2020, as the bank continue to expand its product base and digital channels.
Commenting on the results, Emeka Okonkwo, CEO said: “Following an enhancement to our operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions, we are increasing our customer engagement and product penetration which is translating into higher customer revenues across geographies. On the back of this, the Bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme.
For the full year, our gross earnings grew by 8.9% from N161bn to N175bn, while our net operating income after impairments dropped by 3.6% to N99.7bn from N103.4bn. Interest income grew by 1% as our earnings asset base expanded with a growing loan book.
We continued our strong growth in non-interest income through a combination of aggressive recoveries, which grew 119% in the period, from N7.2bn to N15.9bn and further growth in fee and commission income (33%) and e-business (26%). These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels.
Total active UnionMobile users now stands at 3.3 million, up 20% while our Union360 customer base grew by 22% to 26,400. In 2022, the Bank will continue to focus on broadening and deepening the strong foundations we have built, while enhancing our digital delivery platforms and service propositions to customers.
We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability.
As we turn a new chapter for our Bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future.”
Speaking on the FY 2021 numbers, Chief Financial Officer Joe Mbulu said: “We maintained very strong cost controls during the year despite the inflationary pressures and the translation effect of currency depreciation on our cost base. Operating expenses increased marginally by 1.5% with increasing regulatory, depreciation and amortisation costs. Customer deposits grew by 20% while our loan book grew by 22% from N736.7bn to N899.1bn, as we deepened support for key sectors in the economy. We have been remained proactive in the way we manage our growing risk assets, maintaining our asset quality during the year with our NPL ratio growing marginally from 4% to 4.3%.”
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions.
The Bank has a network of over 250 Sales and Service Centers across Nigeria and over 930 automated teller machines spread across Nigeria. Following recapitalisation in 2012 from new investors and a new Executive Management team, Union Bank has undergone an award-winning transformation programme to reestablish the bank as a leading provider of financial services in Nigeria.
Union Bank is focused on Retail, SME, Commercial and Corporate Banking businesses. In addition to standard current and savings product portfolio, Union Bank has launched pioneering products into the Nigerian retail market including UnionKorrect, UnionGoal and UnionBetta.
