Despite macroeconomic headwinds, Union Bank of Nigeria Plc has released a strong performance in its audited financial statements for the year 2022 with a profit before tax of N30.2 billion which is an increase of 47% compared to the N20.5 billion of the previous year.
The gross earnings also went up by 19% to N208.2 billion from N175.0 billion posted in 2021, driven by strong growth in Net Interest Income.
According to the bank in a statement, Net Interest Income rose by 33% to N59.1 billion from N44.3 billion in 2021 driven by growth in earning assets while Net Operating Income after impairments was up 10% to N110 billion from N99.7 billion in 2021.
This is on the back of increasing inflation which the economy continues to struggle with. The headline inflation rate rose to 22.04% in March, a 0.13% increase from the 21.91% rate recorded in February, according to the latest report published by the Nigerian Bureau of Statistics (NBS) on Friday.
The report said the increase was buoyed by the jump in prices of food, housing, fuel, and gas, among others. The figure shows a consistent increase in the inflation rate for the last two years.
On a year-on-year basis, the headline inflation rate was 6.13% points higher compared to the rate recorded in March 2022 which was 15.92%.
Union Bank noted that Operating Expenses marginally grew by 0.4% to N79.4 billion from N79.2 billion in 2021, reflecting tight cost control despite inflationary pressures.
Also, the net profit after tax also grew by 51.2% to N29 billion compared to the N19.2 billion recorded in 2021.
Commenting on the results, MD/CEO of Union Bank, Mudassir Amray, said that despite the macroeconomic headwinds of 2022, the bank recorded strong performance across key financial and operational indicators. “We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers. On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions. The Bank’s gross earnings grew by 19% to N208.1 billion from N175 billion in 2021.”
“The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities. As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them,” Amray noted.
Also speaking on the FY 2022 numbers, Chief Financial Officer Joe Mbulu said the financial performance is a testament to the disciplined execution of the bank’s plans for the year and resilience against all odds.