Union Bank posts decline of N1.2bn profit in 2020

*Proposes a dividend of N0.25 per share

Union Bank of Nigeria has reported a decline of N1.203 billion profits in the year ended 31st December 2021, amidst the impact of the Coronavirus pandemic on the global economies and businesses.

The audited financial statement sent to The Nigerian Stock Exchange (NSE) has showed that the lender recorded a drop in its gross earnings by 3.75 per cent to N160.292 billion from N166.545 billion the previous year.

Despite the lockdown and skeletal operations by banks and most businesses across the world for months in 2020, the bank reported a significant increase in its total expenses by 10.5 per cent from N71.017 billion to N78.467 billion, during the period under review.

Although, Union Bank posted an increase in its Profit Before Tax (PBT) by 4.5 per cent from N24.844 billion to N25.974 billion. However, declared a significant rise in losses due to discontinued operations net of tax as well as income tax spend contracted its full-year profit.

The bank, however, explained that the loss resulted from the tier 2 lender discontinued operations of ‘subsidiaries held for sale in line with the bank’s divestment plan.’ Union Bank is about consummating the sale of Union Bank UK and is currently awaiting regulatory approval.

Similarly, the bank’s Profit after Tax (PAT) shrank by 6.1 per cent from N19.875 billion to N18.672 billion as of close of business activities for the year 2020.

Meanwhile, its shareholders’ fund rose by 4.7 per cent from N252.342 billion to N264.318 billion.

Commenting, Chief Executive Officer, Emeka Emuwa said, “the core of this performance is driven by the growth in our loan book, with a 23.8 per cent increase in gross loans, to N736.7billionn from N595.3billion in 2019.”