The Nation Newspaper

Tag: Union Bank

  • Union Bank seeks approval for N50b new capital raising

    •To sell N291m shares to employees

    Union Bank of Nigeria (UBN) plans to issue about 12.2 billion ordinary shares of 50 kobo each to existing shareholders and employees to raise N50 billion in new equity funds as the first generation bank looks beyond its centenary.

    Regulatory documents showed that UBN will issue 12.13 billion ordinary shares of 50 kobo each to existing shareholders at N4.10 per share, in a bid to raise N49.73 billion. The first generation bank will also be selling about 51.3 million ordinary shares of 50 kobo each at N5.67 under its Union Bank Long Term Transformation Incentive Plan. The proceeds of N291 million from the shares allotment to employees bring total combined offer size to N50.02 billion.

    The rights issue will be pre-allotted to shareholders on the basis of five new ordinary shares for every seven ordinary shares held as at the close of business on Monday August 21, 2017.

    The bank has filed application with the Nigerian Stock Exchange (NSE) for approval to list the rights’ shares, one of the major final approvals necessary for the completion of the pre-offer process and opening of the subscription.

    Already, the NSE has approved the allotment of shares under the bank’s Employee Share Scheme.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, has said one of the main highpoints of the second half will be the raising of N50 billion new equity fund.

    He said the N50 billion rights issue will be launched “in the third quarter once all regulatory approvals have been secured”.

    According to him, the N50 billion capital increase will support UBN’s strategy to accelerate business growth and position itself as a leading commercial bank in Nigeria.

    Key extracts of the six-month report of UBN for the period ended June 30, 2017 had shown that gross earnings rose by 23 per cent to N73.7 billion in first half 2017 as against N60.1 billion recorded in first half 2016. Profit before tax rose marginally by six per cent from N8.9 billion to N9.5 billion. Customer deposits grew by 15 per cent to N759.3 billion in 2017 as against N658.4 billion in 2016.

  • Union Bank hosts customers, stakeholders in Port Harcourt

    Union Bank hosts customers, stakeholders in Port Harcourt

    Union Bank of Nigeria Plc, at the weekend, hosted its customers and other stakeholders in Rivers State to a classy dinner at the Novotel Hotel, Stadium Road, Port Harcourt. The event was part of activities lined up to celebrate its centenary anniversary this year.

    The dinner which was witnessed by government dignitaries and customers of the bank saw speakers spotlighting Union Bank’s commitment to the development of its customers and Nigeria over the past 100 years.

    Speaking at the event, Chief Executive Officer, Union Bank, Emeka Emuwa appreciated the bank’s loyal customers and reaffirmed the bank’s commitment to providing a simpler and smarter banking experience for them.

    “We are proud of our relationship with our customers as this is very important to us. As a bank, we have been able to achieve this height because we have customers who didn’t stop believing in our services, and because of them we promise to do more,” Emuwa said.

    “We believe the best way to celebrate this milestone is with our customers, and over this year we have a number of activities outlined across the country to celebrate them including this celebration in Port Harcourt. While here we are also launching three upgraded branches to ensure our customers enjoy improved service delivery,” he concluded.

    Emeka Woke, the Chief of Staff of the Government House, commended the Bank on the celebration of its centenary anniversary and for its commitment to its customers and the people of Rivers State. Woke who represented the Governor of Rivers State, H.E Governor Nyesom Wike, emphasized that Union Bank has played a fundamental role in the development of the Nigerian banking system.

    According to him: “Union Bank has been in existence for a century helping Nigerians and has contributed immensely to the development of the economy and the country in general. A lot of us have been customers for many years and enjoyed their services. The people of Rivers State have also directly benefited from the financial institution through job creation and other initiatives in the state. We celebrate them and congratulate them on the good work they are doing.”

    One of the highlights of the event was a grand performance by Port Harcourt’s finest artiste, Duncan Mighty, who thrilled the audience with his music. The evening ended with several testimonials from satisfied customers.

     

  • Union Bank unveils branches, elite lounge in Rivers

    Union Bank has reiterated  its commitment to providing simpler, smarter banking services to its teeming customers with the unveiling of three more upgraded branches across Rivers State.

    The unveiling of the branches in Bori, Kingsway Road and Aba Road areas of the state was part of a two-day activities, which also included a networking and empowerment event for young professionals and entrepreneurs as well as gala event to host customers in celebration of the bank’s centinary.

    The anniversary gala was attended by customers, stakeholders and government dignitaries. They included Chief of Staff to Government House, Chukwuemeka Woke, an engineer, who represented the River State governor Nyesome Wike.

    Speaking at the event, Union Bank Chief Executive Officer, Emeka Emuwa said: “We are very proud of our 100-year-old heritage as this is not a feat easily achieved. We are, however, looking forward and preparing for the next 100 years.

    “At Union Bank, we are very passionate about our customers and we are committed to ensuring they have access to the best banking service possible. This has prompted us to equip our branches with state-of-the-art infrastructure. Our mobile and internet banking applications are also one of the best in the country as we strive to ensure our customers experience service excellence across the country,” he concluded.

    Also speaking at the launch of the upgraded branches, the bank’s Transformation Director, Joe Mbulu, explained that the overhauling of the branches was a result of the bank’s firm commitment to ensuring that its customers have access to the best and most effective banking solutions. ”We are providing the simpler and smarter way to bank through these improvements. It isn’t just a tagline for us, it is a promise – one which we will continue to keep,”he said.

    The bank also launched an Elite Lounge at the Kingsway Road branch in Port Harcourt. The Elite lounge will provide value added banking benefits and a range of personalised banking services to Elite Banking customers of the bank.

  • Foreign investor to raise stake in Union Bank

    Foreign investor to raise stake in Union Bank

    •To increase holding from 31 to 44.5%

    Co-founder of Atlas Mara Ltd, Diamond Bob, will raise his investment in Union Bank of Nigeria Plc, from 31 per cent to 44.5 per cent.

    To achieve this, he plans to sell his stake in Atlas Mara, which has dropped almost 80 per cent since an initial public offering. He will raise more than the company’s market value by selling a 35 per cent stake to Fairfax Africa Holdings Corp.

    Union Bank is Atlas Mara’s single biggest investment in Africa. The bank announced plans to raise capital through a rights issue in November as Nigeria’s small- and mid-sized lenders struggled to cope with a contraction in the economy of Africa’s biggest oil producer.

    Atlas Mara agreed to acquire an indirect 13.4 per cent shareholding in Lagos-based Union Bank from the Clermont Group for $55 million, it said. Union Bank is going through regulatory approvals and will then start the share sale, spokeswoman Ogochukwu Ekezie told Bloomberg.

    It said Atlas Mara, which owns banks in seven African countries, has plunged in value since its December 2013 Initial Public Offering (IPO) after growth across the continent slumped and currencies weakened amid a commodities rout.

    “The firm expects to get $200 million from selling new stock to existing shareholders and Fairfax Africa and will also issue a fresh convertible bond to the Toronto-based investment company, the company said in a statement on Wednesday. Atlas Mara will use the proceeds to boost its holdings in Union Bank of Nigeria Plc to 44.5 per cent from about 31 per cent,” Bloomberg report said.

    Diamond, 65, in February ousted Chief Executive Officer John Vitalo and pledged to cut annual operating costs by $20 million after rising expenses threatened the company’s ability to expand through acquisitions.

    “A strategic partnership with Fairfax Africa creates a strong relationship between two like-minded, long-term investors in Africa. Each is focused on capitalizing on the long-term growth potential of Africa and provides permanent capital to support growth,” Atlas Mara said

    The partnership with Fairfax Africa, which last year bought Zurich Insurance Group AG’s South African business and rebranded it Byte Insurance, will give Fairfax four of the nine seats on Atlas Mara’s board. A new management incentive plan will also be put in place, while Diamond will continue as Atlas Mara’s executive chairman, the company said. Existing investors face a dilution of about 35 percent, according to data compiled by Bloomberg.

    Fairfax Africa agreed to buy at least 30 percent of the $100 million of new shares at a price of $2.25 apiece, representing an implied purchase price of 0.33 times book value, the company said in a separate statement. Atlas Mara’s stock has traded at an average this year of $2.26, according to data compiled by Bloomberg. The shares rose 1 percent to $2.54 as of 1:05 p.m. in London, giving the company a market value of $197.5 million.

    “Banks are at the forefront of economic development in sub-Saharan Africa,” Prem Watsa, Fairfax Africa’s chairman, said in the statement. “Atlas Mara represents a unique opportunity to invest in many profitable banks in the region at a very attractive valuation.

  • Union Bank launches ‘Union Accelerate’

    Union Bank launches ‘Union Accelerate’

    Union Bank Nigeria Plc has announced the launch of UnionAccelerate, a high-interest savings account with zero bank charges for medium-sized businesses.

    The product is a full-featured innovative banking solution that helps manage the challenges of high overhead costs and restrictive bank deductions experienced by businesses across the country.

    Union Bank’s Executive Director, Commercial Banking, Kunle Sonola, explained the product benefits, nd reiterated the lender’s strategic approach of creating innovative banking services with a focus on products that truly meet the needs of customers.

    “The product attracts zero account maintenance fee, unlimited withdrawal on all account variants, and one of the highest interest rates compared to any competing product. UnionAccelerate provides an important opportunity for our medium-sized business customers to leverage on and grow their enterprise with adequate support from us,” Sonola said.

    “All they need to do is call their Union Bank Relationship Manager or walk into any of our branches nationwide to sign up for the account – it’s that easy,” he added.

    UnionAccelerate focuses on new and existing medium-sized businesses and offers several features including free initial cheque books, zero account maintenance fee, attractive and competitive interest rate, unlimited withdrawal on all account variants and pay in as well as issue all clearing instruments such as cheques, dividend warrants among others.

    The product attracts no extra charges for all Union Bank services including on-line/ real time banking, e-banking- both Internet banking and banking via Automated Teller Machines. It can also be used as a salary/payroll account.

    Zero charges will apply on all salary payments initiated via the Union Bank e-payment platform – UnionOne. Participation in annual Business Seminars and Business Development Trainings with Certificates of participation awarded. The launch of UnionAccelerate underscores Union Bank’s commitment to providing simpler and smarter banking to customers.

  • Union Bank celebrates 100th anniversary with artists

    Union Bank celebrates 100th anniversary with artists

    There is no better way to tell a story of 100 years than through the eyes of visual artists who can interpret and recreate ideas with various medium.

    Thus, in the next six months, creativity will meet innovation as artists from across the country are challenged to interpret the white stallion logo of Union Bank through painting, sculpture and mixed media.

    The Centenary Art Challenge with a theme: Interpretation of the Union Bank Stallion, is part of the events line-up by the organisation to celebrate 100 years of existence of the bank. They are giving artists an opportunity to publicly exhibit the work of a major bank in the country and the winner will get a cash prize of N1million.

    The Chief Executive Officer of the bank Mr Emeka Emuwa, at the launch of the competition, which took place at the weekend in Lagos, said they were excited to celebrate the many stories that would come across through the works that will be entered in the competition. “The current logo is left to the artists to reinterpret in sculpture, painting and mixed media from any angle.”

    As the the bank is marking its centenary under three broad themes – Celebrate, Impact and Lead, Emuwa said its wants to also engage the public through art, with the body of artworks which will be exhibited in September this year. The contest is challenging artists to interpret the iconic Union Bank stallion that has been the mainstay of the bank’s identity for decades.

    “Union Bank has a storied history in Nigeria and our 100th anniversary is a unique opportunity to tell our story to different audiences. Artists are storytellers and this competition presents an opportunity to this community to help us tell our story from the vantage of our iconic white stallion,” he said.

    Emuwa said their organisation want to know what the future of the stallion would look like “and we are looking forward to seeing what they will come up it.”

    The art hunt, endorsed by the Guild of Professional Fine Artists of Nigeria (GFA), is a project of Union Bank Plc in partnership with One Draw Gallery led by Olusegun Adejumo.

    The Director of One Draw gallery, and president of GFA, Olusegun Adejumo, said calls are open to all national professional and under graduate artists, which are in two categories. The first category, he said, is for professional artists from the ages of twenty-five and above, while the second category is for undergraduate art students, who will give insight of what the future Union Bank stallion will look like, as they represent the future.

    “The bank is looking into 100 years; they want a student who will represent that future. The Union Bank logo exists, is has been redesigned, but the competition is just to push to the limit what creativity can do to that logo. The logo is the challenge, but the idea is to engage the community,” he said

    According to Adejumo, 200 works will be selected from the entries. Entries will be accepted across the country in various regions and a distinguished panel will shortlist the final hundred works which will compete at the finale. Cash prizes will be awarded to the finalists and the ultimate winners will receive N1 million in the professional category, N500,000 for the second prize and third prize is N250,000 while N250,000 in the student category. The image of the work is to be submit through their website.

    Head of Corporate Affairs and Corporate Communication, Ogochukwu Ekezie-Ekaidem, said: “Talent development is one of our social responsibility focus areas and this competition is another initiative for Union Bank to impact in this area. We strongly believe that through the arts we can spur creativity and innovation in young people.”

     

  • Union Bank promotes financial literacy among youths

    Union Bank promotes financial literacy among youths

    Executives of Union Bank has  celebrated Financial Literacy Day by teaching students across Nigeria about the merits of saving.

    Its CEO, Emeka Emuwa; Executive Director, Commercial Banking; Emeka Okonkwo, Head, Group Corporate Strategy, Lola Cardoso, Head of Human Resources, Miyen Swomen and over 50 other workers visited 30 schools across six states including St. Johns College, Jos and Government Science School, Kuru, Plateau State.

    Financial Literacy Day is a part of Global Money Week, an annual worldwide celebration set aside in March for youths to learn about money, saving, creating livelihoods and becoming financially literate as a whole.

    The theme for this year was Learn, Earn and Save. Union Bank employees spent the day with over 3000 primary and secondary students from 30 schools in all the six geo-political zones across the nation, providing them with the basics of financial education, and empowering them to be prudent from a young age.

    During his interactive session with students of St. John’s College, Jos, Plateau State, Emuwa taught the students how careful money management will help them gain financial freedom, and prepare them for the future. He encouraged them to start making the right financial decisions now so they could build their understanding of how to earn, save and invest money.

    He said: “One of the benefits of this program is that children are becoming more financially literate. Financial education in schools will empower them to make sound financial decisions in future. School children will also pass the knowledge gained to their family and friends”.

    To the students he said “You must remain focused on your goals and work towards achieving them. Goals have to be SMART- Specific, Measurable, Achievable, Realistic and Time-bound. Stay focused in school and develops as many critical skills as possible. Keep learning and stay curious always” he concluded.

  • Union Bank, CCHub partner

    Union Bank, CCHub partner

    Union Bank of Nigeria Plc is partnering with Co-Creation Hub (CCHub) to launch Centenary Innovation Challenge. The launch, announced in Lagos, is part of scheduled activities to mark the bank’s 100th anniversary this year.

    Building on the bank’s 100th anniversary theme: ‘Celebrate, Impact and Lead’, the Centenary Innovation Challenge is an initiative that will impact Nigeria by unearthing and supporting innovative ideas for addressing the Sustainable Development Goals (SDGs) in entrepreneurial ways.

    “The objective is to discover innovative, technology-driven ideas that will address critical social and business challenges in the country.  Proposals are therefore welcomed from university students, software developers, academics and entrepreneurs from across the six geopolitical zones and interested participants should visit the Challenge website – unionbank100.com/challenge – for details,” the bank said.

    Chief Executive Officer of Union Bank, Emeka Emuwa, stated that one of the core values of the bank is innovation; and just as innovation has been a key driver in enhancing customer experience for the bank, it is also relevant in solving social challenges.

    “We are committed to being at the leading edge of innovation, with emphasis on enhancing customer experience and driving social innovation. As we lead our institution into the next century, we will reinforce who we are; corporate citizens that drive true impact in our communities in the course of doing business.”

    CEO and Co-founder of the Co-Creation Hub, Bosun Tijani spoke positively about the Hub’s partnership with the Bank. He said “Based on our work over the past seven years, we have seen that there are very few credible platforms to leverage on to build sustainable businesses in Nigeria.

  • Union Bank plans N50b rights issue in Q2

    Union Bank plans N50b rights issue in Q2

     • Records steady growths in 2016

    Union Bank of Nigeria (UBN) Plc is concluding arrangements to float a rights issue of N50 billion this quarter as the first-generation bank moves to accelerate its business growth. The new capital raising comes against the background of steady growths in key performance indicators of the commercial bank in 2016.
    Chief Executive Officer of the bank, Mr. Emeka Emuwa, at the weekend stated that the bank would launch rights issue in the second quarter of 2017 to raise up to N50 billion in Tier 1 capital, following earlier approval of the issue by the bank’s shareholders.
    According to him, the new equity funds would support the bank’s efforts to accelerate business growth and reposition itself as a leading commercial bank in Nigeria. The additional funding will also allow Union Bank to maintain compliance with regulatory capital requirements.
    He outlined that the bank had in 2016 focused on executing its priorities across the different business segments, especially in the retail space, with an aggressive strategy to increase adoption of its alternate channels.
    He pointed out that the success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of six per cent in 2016.
    He added that the bank’s research-led product development strategy, coupled with an upskilled sales force and targeted marketing campaigns, propelled customer deposit base by 15 per cent with a 73 per cent increase in new-to-bank customers.
    “While the operating environment remains a challenge, we are focused on our 2017 priorities which include raising Tier 1 capital to execute our growth agenda across our retail, commercial and corporate businesses, particularly transaction banking and value chain,” Emuwa said.
    He noted that the bankank will celebrate its centenary in 2017 under three broad themes of celebrate, impact and lead.
    “Our 100th anniversary presents a unique opportunity for Union Bank to frame its own story, highlighting our many successes over the last century and presenting our simpler, smarter vision of banking and corporate citizenship to a new generation of customers,” Emuwa said.
    Key extracts of the audited report and accounts of Union Bank of Nigeria (UBN) Plc for the year ended December 31, 2016 released at the weekend showed that gross earnings rose by 8.0 per cent from N117.2 billion in 2015 to N126.6 billion in 2016. Profit before tax also rose from N14.9 billion in 2015 to N15.7 billion in 2016. Interest income had grown from N90.9 billion to N98.0 billion, driven by loan book growth and improved bank asset yields. Also, interest expense declined by six per cent from N35.2 billion to N33 billion as improved customer funding base and less reliance on expensive interbank funding led to drop in core cost of funds to 5.23 per cent in 2016 as against 6.64 per cent in 2015.
    The balance sheet saw a 38 per cent growth in gross loans from N388.8 billion in 2015 to N535.8 billion in 2016, with 25 per cent of the growth, resulting from impact of devaluation on foreign currency loans. Customer deposits grew by 15 per cent from N570.6 billion to N658.4 billion, driven mainly by new product offerings, increased market penetration and improved customer offtake. Total assets rose by 12 per cent to N1.12 trillion in 2016 as against N1.0 trillion in 2015.

    Emuwa noted that the performance of the bank was driven by expanded retail product portfolio with the launch of five new products as well as accelerated customer on-boarding on the bank’s mobile and internet banking following the launch of new platforms with expanded capabilities in 2016.
    Chief financial officer, Union Bank of Nigeria (UBN), Oyinkan Adewale, said the group continued to drive cost optimisation, with cost-income-ratio declining to 66.2 per cent in 2016 from 70.7 per cent in 2015, notwithstanding a high inflation environment.
    “We will continue to focus on optimising cost in 2017. As we look to raise additional capital to execute business priorities, we will maintain our prudent approach to growing our risk assets while aggressively growing low cost deposits,” Adewale said.
    Adewale also noted that on the back of strong customer deposits, the bank reduced average interbank local currency borrowing by 75 per cent, leading to 141 basis points reduction in primary cost of funds and 17 per cent increase in net interest income.

  • Union Bank wins most efficient Bank in e-reference operations award

    Union Bank wins most efficient Bank in e-reference operations award

    Union Bank has been awarded the most effective bank in e-reference operations. This was announced at the recently concluded 2017 CBN/NIBSS Electronic Payment Incentive Scheme Awards, organised by the Central Bank of Nigeria and the Nigeria Inter-bank Settlement System.

    The e-reference operations refer to one of the activities carried out in Central Processing Centre (CPC) under the Account Opening/Documentation Unit. Contested by all the banks in Nigeria, Union Bank, Fidelity Bank, and First City Monument Bank (FCMB) were shortlisted, with Union Bank recognised as the most efficient bank in ensuring reference requests are processed within minutes of receipt on the platform, a measure which is considered commendable compared with the turnaround time of other banks in the industry.

    Coming off a successful transformation initiative, the new award is the latest in a string of accolades for Union Bank, as it was recently recognised the “Most Improved Retail Bank” at the BusinessDay Banking Awards, the CBN award as the ‘Best bank in Agricultural Credit Guarantee Scheme Fund in Nigeria’.

    The lender also won two international awards for ‘Best Brand Development to Reflect Changed Mission/Vision/Positioning’ and the ‘Best Visual Identity from the Financial Services Sector’.

    Speaking after the announcement, the Head of Operations and Technology, Union Bank, Lucky Jayaratne, shared the bank’s commitment to improving customers’ lifestyles by massively investing in providing a safer, simpler and smarter way of banking.

    “The improvement in our banking operations is clearly evidenced by the growth in the daily transactions on our online banking channels. Union Bank also has the fastest-growing online banking platforms in Nigeria, so we are very delighted to receive this award. We promise to continue building on our achievements and to ensure that our customers enjoy a simpler and smarter banking system,” he said.