The board and management of Union Bank of Nigeria (UBN) Plc have assured shareholders of the bank that recent and ongoing strategic initiatives would lead to improved returns in the current business year.
At the annual general meeting yesterday in Lagos, directors of the bank variously assured shareholders that the bank would optimise its new business model and continue to ensure effective cost management in its operations in order to increase shareholders’ value in 2016.
Chief executive officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa said the bank would focus on growing its deposit base, transactional income and client base, managing its liquidity and effectively utilising its capital while reducing operational costs with a view to delivering better results in the years ahead.
He added that the bank would focus on trade and retail businesses, growing its public sector business in light of the opportunities created by the government as well as drive more value chain synergies across its businesses in Nigeria and United Kingdom.
In his address, chairman, Union Bank of Nigeria (UBN) Plc, Mr. Cyril Odu, assured shareholders that the board and management of the bank are committed to delivering consistent growth in earnings to ensure that the bank can resume paying dividends to shareholders in the near future.
He pointed out that the improving quality of the bank’s earnings underscored the success of its transformation programme.
Reviewing the bank’s 2015 performance, Odu noted that gross earnings for the bank increased by eight per cent from N109.8 billion in 2014 to N118.4 billion in 2015, including N3.6 billion one-off gain on disposal of subsidiaries as the bank continued the implementation of its divestment programme in line with the Central Bank of Nigeria (CBN) regulation.
He added that profit before tax grew from N14.4 billion in 2014 to N14.6 billion in 2015 while operating expenses reduced by two per cent from N57.2 billion to N56 billion in 2015.
He pointed out that the double-digit increase in customers’ deposits by 12 per cent to N569.1 billion in 2015 as against N507.4 billion in 2014 reflects increased customer confidence in the bank while the bank also showed more support for its customers with 15 per cent increase in loans and advances to N349 billion in 2015.