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Tag: Union Bank

  • Union Bank gets BCMS certification

    Union Bank Nigeria Plc has been certified for its compliance with the International Business Continuity Management Systems(BCMS) Standard, ISO 22301:2012.

    The bank was certified by the British Standards Institution (BSI) in partnership with local capacity building firm, Digital Jewels following its successful fulfillment of the rigorous requirements for this internationally recognised standard on Business Continuity Management Systems.

    According to a statement by the International Organization for Standardization (ISO), the ISO 22301:2012 certification specifies requirements to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented management system to prepare for, respond to and recover from disruptive events when they arise.

    Compliance with the BCMS standard ensures efficient response when the organisation encounters threats. In order to achieve certification to the standard, an organisation must demonstrate clear commitment towards assessing both internal and external threats and vulnerabilities and prioritizing relevant risks while implementing preventive measures.

    Kandolo Kasongo, Chief Risk Officer emphasized Union Bank’s commitment to benchmarking its processes and operations against international best practices. According to him:“Our attainment of the new Business Continuity Management certification follows rigorous auditing of ourinternal processes.“

     

  • Union Bank gets global quality management systems certification

    Union Bank of Nigeria Plc has announced its attainment of the ISO 9001:2015 certification by the Standards Organisation of Nigeria (SON).

    This followed the fulfilment of stringent requirements for the internationally recognised Quality Management Standard (QMS).

    The certificate was presented to the management of the bank through the Director of Management System Certification, Mrs. Oluremi Ayeni, who represented SON’d Director General Osita Aboloma at the bank’s Stallion Plaza head office in Lagos.

    ISO 9001:2015 Quality Management System (QMS) is an internationally recognised standard for quality.

    It specifies the criteria for a set of policies, processes and procedures required for efficient planning and execution in the core business area of an organisation.

    Union Bank’s certification followed a thorough evaluation of its operational processes, which showed that its internal processes and systems measured up to global standards.

    These include a strong customer focus, process approach and propensity for continual improvement.

    The bank’s Chief Executive Officer Emeka Emuwa said: “This certification process has helped us measure and improve on a number of core business processes that will ultimately ensure improved business performance. Achieving this feat is a strong validation of our adherence to global best practices as we strive collectively to provide simpler, smarter products and services to our valued customers.”

     

     

     

  • Union Bank boosts operations with robotics

    Union Bank has announced the deployment of the innovative Robotic Process Automation (RPA) technology in its operations; a first in the Nigerian Banking industry.

    The new technology was officially launched at an interactive session which took place at the bank’s Stallion Plaza Head office in Lagos with technology experts, pressmen, customers and the bank’s Management and employees in attendance.

    RPA technology makes use of robots which are software tools developed to simplify business process delivery. The software robots offer improved business efficiency and data security by automating repetitive tasks across multiple business applications without altering existing infrastructure and systems.

    Announcing the deployment of the new technology, the Chief Executive Officer of Union Bank,

    Emeka Emuwa said: “We are quite pleased to be the first in the banking industry in Nigeria to introduce robotics into our processes. The provision of simpler, smarter banking services to our valued customers is at the core of our business and Robotics Process Automation helps us achieve this objective by leveraging cutting edge technology and innovative partnerships. I commend the hard work and dedication of our Union Bank team for the effective execution of this project.”

    The bank’s adoption of RPA technology is expected to enhance staff productivity, reduce process turnaround time and improve accuracy and compliance. With the new technology in place, employees are better able to focus on other value adding and customer related functions, significantly improving the overall quality of customer experience.

    In the first phase of the Bank’s RPA implementation, reconciliation of Automated Teller Machine (ATM) transactions are now fully automated, cutting down processing time by over 60 per cent and ensuring that refunds on ATM fund dispense errors are promptly and efficiently carried out.

    Union Bank’s marked technological advancement in recent times is a major element of its transformation programme and has included the redefinition of the Bank’s business model, reengineering of its work force and rebuilding of its physical infrastructure.

     

  • NSE gives Union Bank, Transcorp, four others more time on shareholding restructuring

    Authorities at the Nigerian Stock Exchange (NSE) have granted six companies further extension of the deadline to restructure their share capital in a way to dilute the overconcentration of shares and free more shares for minority shareholders.

    This followed an exclusive report by The Nation a fortnight ago that 13 listed companies had failed NSE’s main listing requirement of free float and were trading below the minimum volume of shares required for retail shareholdings and general public trading on their shares.

    The Nation had reported that 13 companies had free float deficiencies, a major infraction that may adversely affect liquidity and efficient price discovery.

    A regulatory report obtained yesterday showed that six of the 13 companies have been granted extended deadlines to restructure their share capital while seven companies remain in default of the earlier deadlines granted to them.

    The six companies that have received waivers and extended deadlines include Union Bank of Nigeria (UBN) Plc, Transcorp Hotels Plc, Infinity Trust Mortgage Plc, Great Nigeria Insurance Plc, E-Tranzact International Plc and AG Leventis (Nigeria) Plc.

    The seven companies in default of the earlier deadline include Capital Hotel Plc, Chellarams Plc, The Tourist Company of Nigeria Plc, Interlinked Technology Plc, Caverton Offshore Support Group Plc, Ekocorp Plc and Champion Breweries.

    The trio of UBN, Transcorp Hotels and Great Nigeria Insurance were given extended deadline of May 18, 2020 while AG Leventis, E-Tranzact International and Infinity Trust Mortgage were given up till October 19, 2020, May 17, 2019 and May 17, 2021 respectively.

    A source in the know of the approval process said the extension of the deadline was sequel to applications by the directors of the affected companies, seeking waiver and further extension of the timeline for the dilution of the share structure.

    The source said the companies had cited prevailing market conditions and corporate procedures for their inabilities to meet the previous deadlines.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

    Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the main board is 20 per cent of market capitalisation while companies on the premium board are required to have free float of 20 per cent or above N40 billion on the date the Exchange receives the company’s application to list. Companies on the third tier board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float.

    According to the report, Union Bank of Nigeria has a free float of 14.94 per cent; Capital Hotel, 2.62 per cent; Great Nigerian Insurance, 16.0 per cent; Chellarams, 15.0 per cent; AG Leventis, 11.64 per cent; Interlinked Technology, 14.50 per cent; Infinity Trust Mortgage, 3.50 per cent; Transcorp Hotels, 6.0 per cent; Ekocorp, 11.84 per cent; Champion Breweries, 17.30 per cent; Caverton Offshore Support Group, 17.40 per cent; The Tourist Company of Nigeria Plc, 3.58 per cent and E-Tranzact International Plc, which has a free float of 10.06 per cent.

    Failure by the companies to restructure their share capital at the expiration of the deadline or secure extension of the deadline may lead to delisting of their shares from the NSE. Free float deadline is usually in deference to application by the management of a company for some period to comply with the free float. However, the company is required to provide quarterly disclosure report to the NSE on the efforts being made to fully comply by the deadline.

    By the expiration of the deadline, a company is mandatorily required to have completed partial divestments or dilution of the ‘non-public’ shareholdings to free  the required percentage of equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the companies. In the extreme instance, a company with deficient public float may opt to delist its shares.

  • Union Bank gets BCMS certification

    Union Bank Plc has received certification for its compliance with the International Business Continuity Management Systems (BCMS) Standard, ISO 22301:2012.

    The bank was certified by the British Standards Institution (BSI) in partnership with local capacity building firm, Digital Jewels following its successful fulfillment of the rigorous requirements for BCMS certification.

    According to a statement by the International Organisation for Standardization (ISO), the ISO 22301:2012 certification specifies requirements to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented management system to prepare for, respond to and recover from disruptive events when they arise.

    It said compliance with the BCMS standard ensures efficient response when the organisation encounters threats. In order to achieve certification to the standard, an organisation must demonstrate clear commitment towards assessing both internal and external threats and vulnerabilities and prioritizing relevant risks while implementing preventive measures.

    Commenting on the bank’s recent certification, Union Bank’s Chief Risk Officer, Kandolo Kasongo emphasized the lender’s commitment to benchmarking its processes and operations against international best practices.

    He said: “Our attainment of the new Business Continuity Management certification follows rigorous auditing of our internal processes. Therefore having successfully satisfied all the requirements for this international standard, we assure our valued customers of our readiness to continue delivering quality banking services even in the face of significant disruptions.”

     

  • Union Bank records N5.4bn profit in 3 months

    Union Bank of Nigeria (UBN) Plc, one of Nigeria’s oldest surviving financial institutions, yesterday announced its audited report for the 2017 business year and interim report and accounts for the first quarter of this year, showing considerable growth in key performance indicators.

    Key extracts of the three-month report for the period ended March 31, 2018 showed that the bank recorded double-digit growths in the top-line and the bottom-line, raising hopes for better returns in the 2018 business year. Gross earnings rose by 15 per cent while profits before and after tax grew by 16 per cent and 17 per cent respectively.

    The reports, released to the investing public at the Nigerian Stock Exchange (NSE) yesterday, showed a steady growth trajectory over the 13-month period, with the bank building on its performance in 2017 in the first quarter of 2018.

    The three-month first quarter 2018 report showed gross earnings of N39.5 billion in first quarter 2018 as against N34.3 billion in first quarter 2017. Profit before tax rose from N4.7 billion in first quarter 2017 to N5.4 billion in first quarter 2018. Profit after tax also increased to N5.3 billion in first quarter 2018 compared with N4.5 billion recorded in comparable period of 2017.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the first quarter results reflected the bank’s renewed focus on driving efficiency and productivity with a view to fully leveraging resources including human, technology and new capital to maximize the bottom line.

    “While we are just in the early stages of this drive, we are already starting to see positive results,” Emuwa said.

    Audited report for the year ended December 31, 2017 showed that gross earnings rose by 26 per cent from N126.6 billion in 2016 to N163.8 billion in 2017. Profit before tax was largely flat at N15.5 billion in 2017 as against N15.7 billion in 2016.

    Emuwa noted that the group’s non-performing loan ratio had improved to 14.9 percent by March 2018 from 19.8 percent at the beginning of this year, noting that the bank has continued to maintain aggressive focus on its impaired loans and is expected to resolve some large exposures in the course of the year, which will further drive down the ratio.

    “For the first half of the year, we will continue to hone initiatives around our productivity drive, focusing our people on targeted opportunities across regions and optimising our technology and digital platforms to deliver operational efficiency and improved customer service,” Emuwa said.

    Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Oyinkan Adewale said while the first quarter results reflected the adoption of International Financial Reporting Standards (IFRS) 9, which came into effect at the start of 2018, the bank’s regulatory risk reserve was adequate to absorb the impact of the new accounting rules.

    “Our capital adequacy ratio (CAR) remains robust at 17.9 per cent in spite of the impact of IFRS 9 on impairments. Liquidity ratio is at 39.4 per cent, well above the minimum requirement, while net interest margin improved to 8.73 per cent in first quarter 2018 from 7.14 per cent in first quarter 2017,” Adewale said.

  • Retirees urge Union Bank to pay N42.77b retirement benefits

    Retirees urge Union Bank to pay N42.77b retirement benefits

    Retirees of the Union Bank of Nigeria, under the auspices of Grand Progressive Association of Contributory Pensioners of Union Bank of Nigeria, have accused the National Pension Commission (PenCom) of collaborating with the bank to deny them their benefits amounting to N42.77 billion.

    The pensioners, numbering 6,748, said the bank has not paid the balance of N42.77 billion, 11 years after they retired. They alleged that PenCom has refused to sanction the bank in accordance with the Pension Reform Act, 2004 as amended.

    In a statement by the group’s Preesident, Yohanna Sodo, and Secretary Augustine Ikaan, the pensioners explained that the Union Bank Legacy Pension Assets/Accrued Rights were carried out on March 31, 2008 by Hogg Robinson Nigeria Limited, which submitted that total Legacy pension asset stood at N46.711billion, while the accrued rights was N26.57billion.

    They further said of the total amount of N73.28 billion, the bank only remitted N30.51 billion, leaving a balance of N42.77 billion, which has not been paid. They also alleged that rather than PenCom exercising the powers conferred on it, the commission has chosen to remain silent on the issue even when it is obvious that Union Bank has flouted the law.

    Relying on Section 11 subsection 1(c) of the Pension Reform Act 2014, the retirees argued that as from June 25, 2004, being the commencement of the Pension Reform Act 2004 as amended in 2014, the Accrued Pension rights to retirement benefits of any employee, who is already under any pension scheme existing before the commencement of that Act and has over three years to retire, shall credit the retirement savings accounts of the employees with any funds to which each employee is entitled, and in the event of an insufficiency of funds to meet this liability, the shortfall shall immediately become a debt of the relevant employer and shall have priority over any other claim.

    They stressed that in line with the Pension Reforms Act, the bank management is required to offset the balance of Legacy Pension and accrued rights, which ought to have been remitted to the Retirement Savings Account (RSA) of the ex-workers in compliance with Section 11 sub-section 1(c) of the Pension Reform Act.

  • Court dismisses bank’s bid to claim Lagos flat

    Court dismisses bank’s bid to claim Lagos flat

    The Federal High Court in Lagos on Friday dismissed the move by Union Bank Plc to claim Flat 7B, Osborne Towers, Ikoyi, Lagos.

    About N13 billion was discovered in the flat in April last year.

    The court described the bank as a busybody and ordered the permanent forfeiture of the property to the Federal Government.

    The Economic and Financial Crimes Commission (EFCC) claimed the money was stashed away in iron cabinets and “Ghana-must-go” bags in the apartment.

     

  • Union Bank lists N50b rights’ shares

    Union Bank of Nigeria (UBN) Plc at the weekend listed  listed supplementary shares that were issued under its recent rights issue, raising the commercial bank’s market capitalisation to N244.61 billion.

    A total of 12.13 billion ordinary shares of 50 kobo each were listed at N4.10 per share at the weekend. With the listing of the 12.13 billion ordinary shares, the total issued and fully paid up shares of Union Bank increased from 16.99 billion to 29.12 billion ordinary shares of 50 kobo.

    Union Bank had floated the rights issue to raise N49.745 billion from existing shareholders by offering 12.133 billion ordinary shares of 50 kobo each at N4.10 per share. The rights issue had been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every seven ordinary shares held as at the close of business on Monday August 21, 2017.

    Application for the rights issue had opened on Wednesday September 20, 2017 and closed on Monday October 30, 2017. Allotment results approved by the Securities and Exchange Commission (SEC) showed that Union Bank raised N59.87 billion as shareholders submitted 4,313 applications for 14.6 billion ordinary shares. The bank has however decided to retain its target of N49.745 billion and to return the excess monies to shareholders.

    The breakdown of the allotment showed that 98.4 per cent of the shareholders accepted their rights in full with 52.03 per cent also applying for additional shares.

    Chief Executive Officer, Union Bank of Nigeria (UBN)

  • ‘Union Bank is transforming and in good position’

    ‘Union Bank is transforming and in good position’

    Union Bank celebrated its 100th anniversary this year. If there were doubts about the bank achieving the objectives of its Transformation Agenda, they have been cleared, going by the resounding success recorded since the transformation journey began. The Bank’s Transformation Director, Joe Mbulu, in this chat with Group Business Editor SIMEON EBULU, says it all.

    Transformation Director is a new nomenclature in Nigeria’s banking sector. What is it meant to achieve for the bank and its customers?

    The Transformation Director is responsible for driving the transformation of an organization, in this case Union Bank. So the task is clear; it is about translating the bank’s strategic goals into actionable initiatives, setting up a transformation governance structure to ensure success, communication and engagement around the transformation initiatives and ultimately delivering results.

    We have seen elaborate modernization in your branches across the country. How impactful has this been?

    It has been very impactful as measured by improved business indicators as well as feedback from our customers, stakeholders and even our competitors.  We have not just modernized our branches but have used the opportunity to relocate to centers of new business. We have also managed our spaces better for greater efficiency in line with the current, more technologically focused needs of our customers.

    For example, we have Smarter Banking Centers in some universities and higher institutions of learning and other busy hubs. At these centers, customers are able to perform all banking services electronically and have the opportunity to engage our Contact Centre for assistance via video conferencing when necessary.

    In unveiling these new branches and locations across the country, we have developed a high number of new business relationships as well as deepening of existing relationships.  This has been aided by the parallel launch of our innovative targeted savings products such as UnionKorrect and UnionGoal.

    How far do you intend to go with this Transformation Agenda, any timeline?

    Our Transformation has no end-date.  What we have built over the past three years is a deep foundation on which the bank will continue to evolve and remain relevant to its customers.  We have built on a foundation of quality; this includes the quality of our talent, platforms, customers and also the quality of customer experience.

    How has this positioned the bank for competition and profitability?

    We measure our success using leading indicators and are assured that we are on the right path. For instance, we have grown active customer base by over 40 per cent in two years. We have more than doubled the number of customers on our UnionOnline and UnionMobile platforms.  We have seen electronic transactions increase four-fold over the same period.  The quality of our channels is reflected in the simple fact that Union Bank ATMs are preferred by non-Union Bank customers as indicated by the Nigerian Interbank Settlement System (NIBSS) statistics.

    We had to make a lot of changes to get here. You know change can be tough but with good Change Management techniques we were able to manage the transformation successfully. We had to change ourselves, our products and services. When we were sure we had made good progress, we started to engage the public by unveiling our new brand image and tag line, ‘building a simpler, smarter bank’, now ‘your simpler, smarter bank’.

    We have been profitable since we started the Transformation and will get stronger.

    Union Bank is celebrating its 100 years of operation. What does it look like being around for a century?

    Obviously, no current employee has been around that long!  However, we see Union Bank as an institution with a legacy that is worth sustaining and building on.  At some point, there was the temptation to change the bank’s name but it became clear to the board and management that in Union Bank, we have a ‘trusted partner’ legacy that is worth holding on to.

    With our transformation, we can say we are a ‘100-year old youthful bank.’  We are proud of our legacy in Nigeria and will remain committed to our esteemed customers, who have been loyal through thick and thin.

    How come this transformation left the bank’s name intact?

    Being here for a hundred years means Union Bank is known across the country and even beyond. The legacy of Union Bank is one of trust, reliability and strength. This year, we organized centenary celebration events across the country just to meet with and appreciate our loyal customers and many of them had very inspiring stories of what Union Bank means to them and how it helped them achieve their dreams and goals.

    People tell stories of how Union Bank made them. Union Bank paid their school fees, gave scholarships to them, helped them with their first business loan, and has been with them throughout their careers – 20, 30, 40, 50, 60 years. This is a legacy we couldn’t throw away. Union Bank is an inspiring, resilient generational bank and we realized that we made the right decision to retain the name – Union Bank – while we continue to evolve and transform to meet the needs of new generations.

    What has been your experience at Union Bank so far?

    My experience has been shaped by my personal desire to drive positive change and the transformation of the iconic Union Bank has been a course worth pursuing.

    I am satisfied with the quality of the results of our transformational initiatives so far and I’m seriously expectant as we watch our success indicators grow year on year. I am a forward looking person so my desire for continuing transformation is stronger today than when we started this journey.

    Have you met some brick-walls?

    I will call them challenges not brick walls.  No serious-minded endeavor succeeds without challenges. For instance, the bank had to manage people from different cultures coming into the organization as we revamped our employee base in the last three years. To manage this challenge, we evolved a People and Culture Transformation work stream to articulate and execute initiatives related to defining the desired Union Bank culture and values. This work continues today.

    We also had typical execution issues for projects.  We overcame these via quick and efficient monitoring and issues resolution in the Transformation governance meetings. The firm and fair culture in the Transformation function and processes ensured that the integrity of the Transformation process was not in jeopardy at any point in time.

    Looking at the other side of the banking spectrum, the rural areas. How is this agenda going to impact them and influence their behavior?

    We have branches across the country and we haven’t discriminated in terms of upgrading the quality of the branches, the people or the services. We have also realized, same as the industry, that the branches alone are not adequate to drive financial inclusion.

    So what we have done is to develop products and services to bridge this gap. For instance we now have USSD banking with *826# code. Everyone who has a phone can use this, so you can easily open an account, send money and much more. You truly don’t have to come to the bank, because with *826#, you can do a lot of things.

    We are also, through innovative partnerships, extending our services through these partners to reach the unbanked. So when it comes to collecting cash, which is the only thing we cannot do through *826#, we are able to do that and do it in a safe way though our Direct Sales Agents (DSAs) who can come to you on request. The systems have been developed in such a way that the agent that receives money records it into your account and you get an alert immediately, even before he/ she leaves.

    You could actually go on our UnionMobile app, check out where this agent is, in relation to where you are and invite them to come pick up cash from you, so you don’t need the branch to deposit it. We have developed these apps and tools to make banking easier. That is the new Union Bank.

    What of the not too literate?

    For those who are not literate, we have tellers who can attend to them in their local dialect and guide them through the transactions they need to do.

    How about cost? At what cost have you come this far?

    I’m actually glad to let you know that judging from the cost to income ratio, we have actually done better than where we were five years ago and we will continue to leverage what we have done. We have new technological infrastructure, we hired great people and developed new services, new products, and new partnerships. These things cost money, but we have taken money out of things that don’t add value and moved them into more productive use.

    In closing, without transformation where would Union Bank have been?

    We can speculate about where Union Bank would have been but no one really knows. The great thing is that Union Bank is the only bank that went through the intervention in 2009 yet kept its name, did not need to merge with another bank, got recapitalized as required and continues to do very well.

    Union Bank is transforming, that is even more important. We are in a good position because of what we’ve done with technology, our products and our people too. Our customers’ interests will continue to be at the heart of our operations and we will continue to use all our skills, competencies and abilities to satisfy their banking needs as we aim to deliver on our strategic objectives.