capital market

2022: Union Bank declares 47% growth in PBT to N30.2bn

Published

1 year ago

April 20, 2023

NewsDirect

By Philemon Adedeji

Union Bank of Nigeria Plc has released its audited financial statements for the year ended 31st December 2022, revealing strong financial performance despite macroeconomic headwinds.

The group Profit Before Tax rose marginally by 47 per cent to N30.2 billion as of end of December 31, 2022 from N20.5 billion reported in prior financial year 2021, while Profit After Tax increased impressively from 19.2 billion in corresponding year 2021 to N29 billion in full year 2022.

Gross earnings went up 19 per cent to N208.2 billion in 12 months of 2022 from N175.0 billion posted in 12 months of 2021, driven by strong growth in Net Interest Income.

According to the bank in a statement, Net Interest Income rose by 33 per cent 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 per cent 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 per cent in March, a 0.13 per cent increase from the 21.91 per cent rate recorded in February, according to the latest report published by the Nigerian Bureau of Statistics (NBS) recently.

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.

Net Interest Income rose by 33 per cent to N59.1 billion from N44.3 billion in 2021, as Net Operating Income after impairments up by 10 per cent to N110 billion in full year 2022 from N99.7 billion in full year 2021, while Operating Expenses marginally grew by 0.4 per cent to N79.4 billion from N79.2 billion in 2021.

On a year-on-year basis, the headline inflation rate was 6.13 per cent points higher compared to the rate recorded in March 2022 which was 15.92 per cent.

Union Bank noted that Operating Expenses marginally grew by 0.4 per cent to N79.4 billion from N79.2 billion in 2021, reflecting tight cost control despite inflationary pressures.

Commenting on the results, MD/CEO, 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 per cent to N208.1 billion from N175 billion in 2021.

“Whilst non-interest income declined marginally by 1.0 per cent. Net interest income after impairment grew 26.1 per cent to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1 per cent from N20.5 billion recorded in 2021.

“In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022.

“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.

He said, “While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage. Operating expenses increased marginally by 0.43 per cent due to increased non-discretionary regulatory costs. Our cost-to-income ratio dropped to 72.5 per cent from 79.4 per cent in 2021 due to cost-control measures implemented during the year.

“The Bank’s balance sheet remains strong, with total assets increasing by 8.8 per cent to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5 per cent from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8 per cent to N 1.48 trillion.

“While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our 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.”

capital market

FG lists N4.214bn April savings bonds on NGX

Published

2 days ago

May 16, 2024

NewsDirect

The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

This was disclosed in the market bulletin signed by Godstime Iwenekhai, Head, Issuers Regulation Department of NGX.

According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 percent, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046 percent.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.

FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

capital market

LCFE inducts 23 commodities brokers

Published

2 days ago

May 16, 2024

NewsDirect

As part of its capacity building functions, Lagos Commodities and Futures Exchange (LCFE), has onboarded and inducted another 23 Commodities Brokers, the fourth edition in the series, to increase the number of professionals to specialise in various asset classes in the Nigerian commodities ecosystem.

On the list of those inducted last week were the Managing Director, Dynamic Portfolio Limited, Mr Remi Lasaki and many Chief Executive Officers of stockbroking companies in Nigeria.

In his welcome address, LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale, urged the inductees join hands with The Exchange to build a virile commodities market that shall be beneficial to all.

“LCFE is working hard to build a market that will benefit the entire Capital Market and its brokers. Each broker can select a commodity and dedicate their focus on it, thereby enhancing your company’s wealth, your individual skill set and contributing to the growth of the Nigerian Economy.

“Together, let us seize this opportunity to build a vibrant and dynamic marketplace that unlocks new possibilities for investors, enhances economic prosperity, and positions Nigeria as a leader in commodities trading.

“The Exchange is actively engaging with the Securities and Exchange Commission to obtain approval for more products like Lithium, diamond and Oil and Gas commodities. Just yesterday, we signed an MOU with a Global Certification Agent Bureau Veritas to certify lithium and other Solid Mineral commodities to be traded on LCFE. Additionally, we have made significant strides in the Cashew ecosystem, signing an MOU with the Cashew Association of Nigeria (CAN), aggregators, and a major cashew processor.

“Eko Gold also represents a pioneering investment opportunity within our commodities ecosystem, leveraging stability and transparency to diversify options, attract capital, and create value across the value chain. LCFE is fully committed to supporting its growth and providing brokers with the tools and guidance needed for effective promotion of the asset classes,” said Akeredolu-Ale.

Corroborating him, the Chairman, Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, noted LCFE was established for total transformation of commodities exchanges in Nigeria and boost the country’s Gross Domestic Product (GDP).

“The underpinning drive for establishing the exchange was the need to transform and reposition the commodities market and harness opportunities in the commodities ecosystem. This drive will enhance and crate value for all stakeholders in the ecosystem,” he said.

The newly elected President of Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, congratulated the inductees and advised them to uphold the ethical standard of the profession and operate with skills and integrity.

Akeredolu-Ale also congratulated the new board and management of Securities and Exchange Commission (SEC), under the new Director General, Dr Emomotimi Agada.

In July last year, the Pan African Exchange inducted 33 commodities brokers, including the first female office holder at Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie.

capital market

Tinubu asks Senate to confirm four board members of SEC

Published

2 days ago

May 16, 2024

NewsDirect

President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC), the apex regulator of Nigeria’s Capital Market.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

The appointed members of the SEC are Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

While Agama was appointed as Director-General, Mr Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission. Ajomale was appointed as Executive Commissioner (Operations) while Hassan-Usman was appointed as Executive Commissioner (Corporate Services).

In April, President Tinubu approved the appointment of seven persons as members of the SEC pending their confirmations by the Senate. But, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

In the letter, the President explained that the appointment complied with the provisions of section (1) of the Investment and Security Act of 2007.

“Confirmation of appointment of the Director-General and Commissioners of the Securities and Exchange Commission.

“By the provision of sections 3 and 5 (1) of theInvestment and Securities Act 2007. I am pleased to present for confirmation by the Senate the under-listed four nominees as Director-General and Commissioners of Securities and Exchange Commission,” he said.

The president urged the lawmakers to expedite the screening and confirmation process.

The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.