Union Bank Plc has grown its profit before tax by 628.9 per cent from the N3.8 billion which it made in 2013 to N27.7 billion at the end of its 2014 financial year through the sale of its subsidiaries.
Speaking at the annual general meeting of the bank, the group managing director of the bank, Mr Emeka Emuwa, noted that the growth in profit was due to one-time events.
According to him, the bank’s profit grew on one-off gains of N6.3 billion from the sale of subsidiaries and this added significant boost to profits.
“We were able to grow profitability from our core operations combined with our effective cost management initiatives which stabilised our costs and kept expenses flat year-on- year. This led to a cost-to-income ratio improvement from 74 per cent in 2013 to 68 per cent in 2014 for the bank, and from 75 per cent to 63 per cent for the group” he explained.
He noted further that the bank experienced a 28 per cent growth in net operating income from N60.9 billion in 2013 to N77.9 billion while the group experienced 34 per cent growth from N63.9 billion in 2013 to N85.7 billion in 2014.
“Our balance sheet remains strong with total assets of the bank and the group closing the year at N920.9 billion and N1.009 trillion respectively. We are pleased to say that we improved shareholders’ value by increasing Return on Average Equity from 3 per cent in 2013 to 10 per cent in 2014 for the bank and from 2 per cent in 2013 to 13 per cent in 2014 for the group. Earnings per share improved from 30 kobo to 121 kobo in 2014 for the bank and from 37 kobo to 157 kobo in 2014 for the group,” Emuwa said.
Union Bank Boosts Profit With Sale Of Subsidiaries
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