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Union Bank returns to profitability in full year 2012 results

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Union Bank of Nigeria Plc released its results for the financial year ended December 31, 2012.

Gross Earnings for the Bank totalled N96.5 billion, up 35 percent from year-end 2011 while Gross Earnings for the Group rose 33 percent to N112.8 billion.

Profit Before Tax for the Bank was N7.9 billion, up from a loss of N102.6 billion the previous year. The Group recorded Profit Before Tax of N8.8 billion compared to Loss Before Tax of N107.7 billion in 2011. Profit After Tax for the Bank was N7.9 billion as against a loss of N76.7 billion in 2011, while Profit After Tax for the Group was N7.4 billion compared to a loss of N82.6 billion in the previous year.

Earnings Per Share also improved, with the Bank recording 46 kobo in 2012 compared to negative N12.51 kobo in 2011, and the Group recording 61 kobo as against negative N12.26 kobo the year before.

Customers’ deposits stood at N482 billion at 2012 year-end, a 21 percent increase from 2011 year-end figures. Shareholders’ Funds at year-end stood at N171.671 billion. The Bank’s Total Assets grew 7.2 percent to N886.468 billion while Group Total Assets stood at N1.033 trillion.

Operating expenses improved for both the Bank and the Group, with the Bank recording N66.5 billion in expenses as against N73.2 billion in the previous year, and the Group recording N77.3 billion compared to N90 billion in 2011. As at December 31, 2012, the Bank’s capital adequacy, at 20%, was above the 15% regulatory requirement for international banks, while liquidity ratio was 96 percent, also above the 30% regulatory requirement.

“Our 2012 results have fully incorporated all costs relating to the recently concluded recapitalisation and clean up of our loan portfolio,” said Emeka Emuwa, Group Managing Director and Chief Executive of Union Bank. “Our transformation roadmap is well under execution as we upgrade and strengthen our operating platform so that we can serve our customers better. We are pleased to enter the new financial year on an encouraging note.”

“We are happy to report improvement from year-end 2011 to year-end 2012 in most performance measures,” said Oyinkan Adewale, Executive Director and Chief Financial Officer. “We recorded an increase in our earnings, worked to keep costs down and at the same time made efforts to increase productivity. While the full benefits of these efforts may not be immediately obvious, we are happy with the indicators that we are moving in the right direction”.

In 2012, following the successful recapitalisation the Bank, transformation efforts began in earnest with the strengthening and consolidation of the Board as well as the recruitment of key executives. Senator Udoma Udo Udoma CON, a lawyer and Senior Partner of the law firm of Udo Udoma & Belo-Osagie, was appointed to the Board as Chairman. Also appointed to the Board during the year were Group Managing Director and Chief Executive, Emeka Emuwa, former Managing Director of Citibank Nigeria, and Oyinkan Adewale, Executive Director and Chief Financial Officer John Botts, Cyril Odu, Douglas Munatsi and James Macarthur also joined the Board as Non-Executive Directors.