Union Bank Reports 20% Growth in PBT for H1 2024 Despite Economic Challenges
Union Bank of Nigeria Plc has announced a remarkable 20% growth in Profit Before Tax (PBT) for the first half of 2024, reflecting the bank’s resilience and strategic focus amidst a challenging economic environment. The bank’s PBT rose to ₦79.8 billion on gross earnings of ₦333 billion for the half-year ending June 30, 2024, compared to ₦66.5 billion on gross earnings of ₦210.5 billion during the same period in 2023.
This significant performance comes despite the economic headwinds following the Central Bank of Nigeria’s (CBN) intervention in January 2024, which led to heightened customer concerns and an unpredictable operating environment.
Union Bank’s Managing Director and Chief Executive Officer, Mrs. Yetunde B. Oni, expressed her satisfaction with the results, stating, “I am pleased that Union Bank has delivered a strong financial performance in the first half of 2024. Our focus on stability, strategic priorities, and digital transformation has yielded positive results, even in the face of economic challenges.”
The bank’s gross earnings increased by 58% to ₦333 billion, driven by a significant boost in Net Interest Income, Net Operating Income, and Net Trading Income. Net Operating Income after impairments also rose by 32% to ₦143.6 billion, attributed to enhanced interest income, fees, commissions, and margin expansion.
In line with its strategic goals, Union Bank launched its digital lending platform, UnionKash, in the first quarter of 2024. The platform, which allows customers to easily access soft loans, has seen over 14,000 customers benefit from its services.
Mrs. Oni further highlighted the bank’s commitment to sustainability and long-term growth, noting that Union Bank has initiated a recapitalisation process to align with the Banking Sector Recapitalisation Program introduced by the CBN. This program mandates banks to increase their minimum paid-in common equity capital by April 2026. “This strategic initiative will not only strengthen our financial stability but also position us to capitalise on emerging market opportunities,” she added.
Acting Chief Financial Officer, Mr. Oluwagbenga Adeoye, provided further insight into the bank’s financial performance, acknowledging the challenges posed by the high inflationary environment, exchange rate volatility, and increased operational costs. “Despite these challenges, our financial performance remains strong. We have maintained a Cost to Income Ratio of 44%, demonstrating our commitment to cost efficiency.”
The bank’s loan book grew by 24% to ₦1.93 trillion, while customer deposits increased marginally by 1% to ₦2.36 trillion, reflecting the impact of the socio-economic pressures on its operations.
As Union Bank looks towards the second half of 2024, its focus remains on improving operational efficiency and driving non-interest income. “We are confident that we will finish the year strong, delivering sustained returns on equity and assets,” Mr. Adeoye concluded.
**About Union Bank of Nigeria Plc:**
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is one of Nigeria's most respected financial institutions. With over 300 branches across the country, the bank offers a wide range of banking services to individual and corporate clients, including savings and deposit accounts, loans, and trade finance, as well as electronic banking services like online banking, mobile banking, and debit cards. For more information, visit [www.unionbankng.com](http://www.unionbankng.com).
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