Union Bank of Nigeria (UBN) Plc on Thursday announced a dividend recommendation of about N7.3 billion for the 2019 business year, its first dividend payment in 11 years.
Shareholders will receive a dividend per share of 25 kobo.
The dividend payment was made possible because the bank was more profitable in the period, something CEO Emeka Emuwa confirmed.
“Our strong overall performance paved way for the dividend declaration,” Emuwa said in a statement to investors.
The important part of the bank’s earnings has been the conscientious growth of the loan book, according to Emuwa.
Union bank’s earnings grew by 14 per cent from N140.1 billion in 2018 to N159.9 billion in 2019. Interest income increased by 11 per cent from N104.8 billion to N116.5 billion while Non-interest income rose by 23 per cent from N35.3 billion to N43.3 billion.
Increased earnings translated to higher profits.
Profit before tax grew by 33 per cent from N18.7 billion to N24.7 billion. Profit after tax also rose by 32 per cent from N18.4 billion to N24.4 billion.
Union bank also booked N98 billion in new loan assets in the course of the year reflecting a 20 per cent growth to close at N595.3 billion from N496.8 billion in 2018.
The improved performance also reflected the success of some of the key operational and cost saving initiatives that have been implemented to accelerate growth and profitability, according to Emuwa.
The bank’s Operating expenses declined marginally from N71 billion to N70.8 billion in the period while
its cost-income ratio fell to 74.1 per cent from 79.2 per cent in 2018, in a sign of improved cost efficiency.
“In 2020, we will continue to focus on bottom-line initiatives that will build on our success in 2019. We are promoting synergy across our businesses and functions to ensure alignment with and on our strategic objectives,” Emuwa said.
