Union Bank Grows Profit Before Tax By 20% To N80b In H1 2024

Union Bank of Nigeria has reported a Profit Before Tax (PBT) of N79.8 billion and gross earnings of N333 billion for the half year ended June 30, 2024, representing a 20 percent growth in profit before tax and 58 percent growth in gross earnings compared to the corresponding period in 2023.

In spite of the challenging environment following the Central Bank of Nigeria’s (CBN) intervention in January 2024, the bank has demonstrated resilience and commitment to delivering results.

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Managing Director and Chief Executive Officer (MD/CEO) of the bank, Yetunde Oni, attributed the success to the bank’s strategic priorities, which include scaling its digital play, driving hyper growth in target sectors, optimizing wholesale bank structure, aggressively ensuring recoveries of past-due obligations, and orchestrating a robust ecosystem play through existing and new partnerships.

The bank has also launched its digital lending platform, UnionKash, which has enabled over 14,000 customers to access soft loans since its launch in the first quarter of the year.

Union Bank’s focus on building a controlled, compliant and profitable organization has positioned it to capitalize on emerging market opportunities.

Acting Chief Financial Officer (CFO) Oluwagbenga Adeoye also noted that the bank’s financial performance is a testament to its resilience, despite the slow start to the year due to high inflation, exchange rate volatility, and increased power costs.

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Union Bank has implemented cost-efficiency initiatives to maintain a cost-to-income ratio below 50 percent.

In the second half of the year, the bank is expected to focus on improving efficiency and driving non-interest income.

With a strong governance framework, regulatory compliance and sustainable profitability, Union Bank is confident of finishing the year strong and sustaining returns on equity and assets.

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