By Cynthia Ezekwe

Union Bank of Nigeria posted a revenue growth of  N208.2 billion for the year ended December 31, 2022, as its gross earnings increased 19 per cent year-on-year, compared to N175.0 billion in FY 2021.

Despite macroeconomic headwinds experienced during the period under review, the commercial bank’s financial statement for 2022 reflects strong financial performance attributed to the disciplined execution of its go-to-market strategy focused on deepening its core business while exploring new areas of opportunity to acquire, engage, and retain customers.

The financials showed a net interest income of N59.1 billion, a  33 per cent increase  to N44.3 billion recorded in 2021, driven by growth in earning assets. Net operating income after impairments stood at  N110 billion, a 10 per cent increase to N99.7 billion registered  in 2021.

Also, the profit before tax appreciated 47 per cent to N30.2 billion, surpassing 20.5 billion recorded  in 2021, while the operating expenses marginally grew by 0.4 per cent  to N79.4 billion, compared to N79.2 billion registered in 2021, reflecting tight cost control despite inflationary pressures.

Gross loans grew  to N1.0 trillion,11 per cent above N899.1 billion posted in the corresponding year of 2021, driven by the bank’s expansion of its  lending to vital economic sectors of opportunity. In addition, the customer deposits showed an appreciation of  N1.48 trillion, a nine per cent increase to N1.36 trillion recorded in December 31,2021. The increase in customer deposits is attributed to the bank’s product base and digital channels expansion.

Commenting on the company’s  financial performance, Mudassir Amray, the managing director/chief executive officer, Union Bank said, "Despite the macroeconomic headwinds of 2022, we 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.’’

Amray maintained that the bank remains focused on executing its  strategic initiatives, which are centred on pursuing additional opportunities to diversify its revenue sources, while strengthening the  core business.

He added that the bank looks forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022, noting  that the  transition will make the commercial bank to be  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,’’ the MD said.

Joe Mbulu,Union Bank’s chief financial officer, remarked that the bank’s financial performance is a testament to the disciplined execution of its plans for the year and resilience against all odds.

“While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage,’’ he pointed out.

Mbulu added that the  bank's  cost-to-income ratio dropped to 72.5 per cent  from 79.4 per cent recorded  in 2021 due to cost-control measures implemented during the year.

He further stated that while the  financial institution seeks to grow its  risk assets, maintaining quality assets remains a key priority, as its non-performing loan (NPL) ratio reduced from 4.3 per cent  to 4.0 per cent, and the capital adequacy ratio remained within regulatory limits at 14.4 per cent.