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Tag: Union Bank

  • Union Bank marks centenary anniversary

    Union Bank of Nigeria Plc yesterday began celebration to mark its 100 years of operation.

    The Group Managing Director, Union Bank Plc, Emeka Emuwa said the 100 years remains an incredible milestone.

    “In the next 100 years, we will keep celebrating and impacting our environment positively. We want to celebrate our employees, customers and shareholders,” he said.

    “In the course of the year, we will lead and will not be complacent. Innovation separate the winners from losers,” he added.

    He said the lender was established in 1917 as Colonial Bank and in 1922, Barclays Bank acquired it, changing the name to Barclays Bank DCO (Dominion, Colonial and Overseas) and through the years, the Bank went on to become one of Nigeria’s leading financial institutions.

    The bank chief had embarked on a transformation programme to reposition the lender with the objective of becoming a leading provider of quality financial services in the country.

    With a defined business model focused on customer segments across retail, commercial and corporate banking, Union Bank is now positioned to deliver simpler, smarter service to all its customers. The bank has relied on technology to enhance its customer service, maintain a reliable banking platform and the roll out of new products especially in the retail space.

    The bank continues to showcase successes of its transformation which include the launch of more than 110 new or refurbished branches across Nigeria; a new brand identity which has been recognised internationally at the Transform Awards MENA; steady growth of its customer deposits and the fastest growing mobile banking platform in the industry with nearly 350 per cent increase in mobile banking customers in 2016.

    Emuwa said: “One hundred years is no easy feat for any institution and I am proud to be a part of this milestone achievement at Union Bank. While we will celebrate our past achievements, this milestone also signals the start of our legacy for the next one hundred years. This year will be about showcasing who we are as an organisation – a responsive corporate citizen to our communities and a champion for sustainability and social innovation.”

  • Union Bank holds leadership seminar for entreprenuers

    Union Bank of Nigeria Plc has organised the third edition of its innovative leadership and networking series-‘Engage’ which attracted young entrepreneurs.

    The event, held in Lagos, is a networking event for professionals and entrepreneurs to connect and share innovative ideas and foresight on how to thrive better. It was previously in Abuja and Port Harcourt.

    The event with theme: ‘Navigating and Succeeding in Tough Times’, considered the current tough economic situation in the country, and its impact on businesses, especially those owned by young entrepreneurs and even in business where these professionals work.

    Some entrepreneurs and professionals present at the event were: Head, Elite & Royalty Banking, Union Bank, Dayo Odulate; Head, Communication and Media, Union Bank, Omotola Oyebanjo; Group Head, Commercial Banking, Union Bank, Gloria Omereonye; Founder, LEAP Africa, Ndidi Nwuneli; Country Director, Alstrom Group, Tola Sapara; CEO, SurkReo Communications, Daniel Emeka; CEO, Cregital, Evans Akanno; Co-Founder, Pledge51, Zubair Abubakar; Founder, MyLekkiAttitude, Adewale Adetona; Founder, Mamalette, Anike Lawal; amongst others.

    “With almost 100 years of experience in the Nigerian financial industry, Union Bank understands the need to adapt and also anticipate new challenges. Tough times does not affect big companies alone, but also small businesses and individuals too,” Oyebanjo said.

    “We created ‘Engage’, a platform that allows young professionals and business leaders network, engage, identify and recommend real-time solutions to challenges faced by corporate organisations, businesses and even professionals in their chosen careers.”

    The Engage Series and the launch of three (3) state-of-the-art branches in Lagos are part of the engagement activities accompanying Union Bank’s transformation across the country.

  • Union Bank’s shareholders approve N50b rights issue

    Union Bank’s shareholders approve N50b rights issue

    Union Bank of Nigeria (UBN) Plc plans to raise N50 billion new equity funds from existing shareholders of the bank.

    At an extraordinary general meeting yesterday in Lagos, shareholders of the first generation bank approved five resolutions authorising the board of the bank to raise up to N50 billion through rights issue.

    Shareholders increased the authorised capital of the bank from N9.5 billion consisting of 19 billion ordinary shares of 50 kobo each to N17.5 billion consisting of 35 billion ordinary shares of 50 kobo each by the creation of additional 16 billion ordinary shares of 50 kobo each.

    With this, the memorandum and articles of association of the bank will be amended to reflect the increase in the authorised share capital to N17.5 billion.

    Amendment of the bank’s articles and memorandum of association in order to authorise an increase in the bank’s share capital and the mandate to issue new shares require approval of at least a three-quarter majority of votes present at the meeting. The resolutions yesterday were supported by shareholders representing altogether 99.6 per cent of the votes.

    Chief executive officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, noted that obtaining shareholders’ approval for the bank’s capital increase is a necessary step towards the rights issue.

    He said the increase in capital will further strengthen Union Bank’s near-term positioning and enable it to realise its long-term growth aspirations.

    “We view the right issue approval as a strong sign of shareholders’ support for Union Bank’s  growth strategy and our plans to scale up operations and strengthen our position in readiness for uptake when the macroeconomic direction changes,” Emuwa said.

    Key extracts of the interim report and account for the Union Bank Group for the nine-month period ended September 30, 2016 showed that group gross earnings rose by 12 per cent to N93.43 billion in third quarter 2015 as against N83.72 billion recorded in comparable period of 2015. Interest income had grown from N66.91 billion to N70.96 billion. Net interest income improved by 19 per cent from N40.27 billion to N48.07 billion. Non-interest income also grew by 35 per cent from N16.67 billion to N22.47 billion.

    Group profit before tax rose by 27 per cent to N13.3 billion in third quarter 2015 compared with N9.6 billion in third quarter 2015. After taxes, net profit also rose from N9.34 billion to N13.01 billion. With these, earnings per share improved from 55 kobo in 2015 to 76 kobo in 2016.

    Key underlying ratios were generally positive. Net interest margin, which underlines the profitability of the core banking operations, improved from 8.1 per cent to 8.8 per cent. Cost-to-income ratio also improved to 63 per cent as against 76 per cent in comparable period of 2015. Return on equity increased to 6.9 per cent as against 5.5 per cent while return on assets improved from 1.2 per cent to 1.6 per cent.

  • Akwa Ibom youths win awards at LEAP Africa, Union Bank event

    YOUTHS  from Akwa Ibom State have been rewarded at this year’s Social Innovators Programme and Awards (SIPA), organised by Leadership, Effectiveness, Accountability and Professionalism (LEAP) Africa, in partnership with Union Bank Nigeria Plc.

    Founder of LEAP Africa Mrs. Ndidi Nwuneli said the organisation was a non-profit concern committed to developing dynamic innovation and principled African leaders.

    She spoke at the Emerald Events Centre, Uyo, the state capital, at the 12th edition of SIPA, with the theme: “Building Communities”.

    Three Fellows; Buba Imrana, founder of My TV My School Initiative; Adeloye Olarenwaju, founder of SaferMom and Okocha Nkem, founder of Mamamonrize won 1,000,000 each from Union Bank for their socially-driven initiative.

    Nineteen Fellows graduated for completing the 2015/2016 Fellowship programme.

    The young men and women were said to have achieved much in their organisations.

    Awards of recognition were presented to five young entrepreneurs from Akwa Ibom State.

    Nwuneli said SIPA was one of the programmes of LEAP Africa, adding that it recognises and rewards creative and innovative individuals, who concluded the organisation’s one year Fellowship.

    Explainig further, the founder said such initiative provide solutions, tackle community social needs and promote social inclusion.

     

  • Union Bank launches Elite Banking in Abuja

    Union Bank of Nigeria Plc has launched its Elite Banking Segment for the emerging and established middle class in Abuja.

    At the segment launch, at the bank’s Abuja Main Branch, guests and customers praised the concept, saying it represents another innovative service for them.

    A customer,Ikechukwu Oliya,   said: “My experience as a Union Bank customer has been very rewarding. Union Bank has been in existence for a long time, and it is very satisfying to know that the bank keeps providing useful solutions to its customers’ banking needs.”

    With the launch, the emerging middle class can enjoy benefits and value-added banking hitherto  reserved for high-net worth individuals. These include an Elite Associate or relationship manager dedicated to them, access to exclusive Elite lounges at select Union Bank branches where they can carry out banking privately and Priority pass cards which among other benefits grants them access to 850 airport VIP lounges around the world.

    The Elite Banking Segment also offers benefits, such as accounts with zero maintenance fees, higher interest rates, premium discounts on loans, discounts at select local partner stores and an Elite Debit Card, which gives customers automatic membership to the MasterCard Platinum program where they can enjoy exclusive lifestyle offers on travel, dining, entertainment and lots more.

    Elite & Royalty Banking Head, Dayo Odulate, confirmed the bank’s promise to provide customers with access to unique banking that fit their lifestyle needs.

    She said: “Union Bank recognises the need to pay special attention to the middle class. From regular conversations with our customers, we realised the need to address the gap in service delivery to this economic class in the country and the Elite Banking segment has been designed to plug that gap.”

    Union Bank’s Public Sector, Executive Director, Ibrahim Kwargana, emphasised the bank’s commitment to focus on customer segments in other to satisfy the real needs of each segment.

  • Union Bank launches elite banking for middle class

    Union Bank of Nigeria (Plc) has launched the Elite Banking Segment to reaffirm its retail banking franchise.

    The launch, the lender said, would enable it provide a range of personalised banking services targeted at the emerging middle class.

    “With the launch of the segment, the emerging middle class now gets to enjoy value added banking benefits which are usually reserved for high net worth individuals. Some of these include an Elite Associate or relationship manager dedicated to them, access to exclusive Elite lounges at select Union bank branches where they can carry out banking privately and Priority pass cards which among other benefits grants them access to 850 airport Very Important Person (VIP) lounges around the world,” the lender said.

    It also provides benefits, such as zero maintenance fees on accounts, higher interest rates, premium discounts on loans and at select local partner stores, and an Elite Card, which gives them automatic membership to the MasterCard Platinum programme for which they enjoy exclusive lifestyle offers for travel, dining, entertainment and lots more.

    Head, Elite & Royalty Banking, Dayo Odulate, expressed the bank’s intention to provide its customers with access to unique banking services that fit their lifestyles.

    She said: “Union Bank recognises the need to pay special attention to the middle class. From extensive focus group sessions with our customers, we identified that there is a gap in service delivery to this class of people in the industry and the Elite Banking segment has been created to plug that gap.

    “The Elite Banking proposition, ‘It’s All About You’, clearly shows how we intend to engage with our Elite Banking customers. From personalised service by dedicated relationship managers, to higher interest rates on savings and investments and special discounts on loans, we intend to support them fully in achieving their life goals and dreams”.

    Retail Banking Director, Carlos Wanderley, said Union Bank is building on its retail banking.

    “The newly-introduced Elite Banking offers is targeted at hardworking Nigerians and is our way of rewarding all the hard work that they do as they strive to achieve their personal goals. The launch of this segment is in line with Union Bank’s objective of providing simpler and smarter banking solutions and we are pleased to present this new offering to our esteemed customers.” he said.

  • Union Bank’s Unaudited results for the 3rd quarter ended 30, September, 2016

    Union Bank’s Unaudited results for the 3rd quarter ended 30, September, 2016

    Union Bank, one of Nigeria’s long-standing and most respected financial institutions, announces its unaudited results for the nine months ended 30th September 2016.

    Bank Financial Highlights:

     

    Profit before tax: ₦13.2bn (₦13.2bnin9M2015); excluding gain on sale of subsidiaries*,increased by 27%to₦12.4bn(₦9.8bn in9M2015).

     

    Gross earnings:up by 7% to  ₦91.4bn (₦85.4bnin 9M2015); excluding gain on sale of subsidiaries*,increased by 11% to ₦90.6bn (₦82.0bnin 9M2015).

     

    Interest income: up 6 % to ₦69.2bn (₦65.3bnin9M2015) driven by improved asset yields from 14.2% in9M2015 to16.1%in9M2016.

     

    Interest expense: down 14%to ₦22.8bn (₦26.5bn in9M2015) driven by lower funding costs.Primary cost of funds declined to5.27%in9M2016from6.58%in9M2015.

     

    Net revenue before impairment: up20% to₦46.4bn (₦38.8bnin 9M2015) as a result of 6% interesti ncome growth and 14% interest expense growth. OurNet interest margin grew from 8.76% to9.97%

     

    Impairment: up ₦8.4bnto₦12.8bn(₦4.4bnin9M2015) with NPLRatio increasing to 9.4%(7.0% in Dec2015).

     

    Non-interest revenue: up 10% to ₦22.1bn (₦20.1bnin9M2015);excluding gain on sale of subsidiaries*, revenues are up 28% to ₦21.4bn (₦16.7bnin9M2015) led by revaluation gains and e-business fees.

     

    Operating expenses:at ₦42.7bn (₦41.3bn in9M 2015)inspite of current inflationary pressures and consistent with investments in technology and network infrastructure.

     

    Gross loans: up 39%to₦515.4bn (₦370.9.0bninDec2015);driven by 13% local currency loan growth and 26% impactof the revaluation of foreign currency loans.

     

    Customer deposits: up 9%to₦618.30bn(₦569.1bninDec2015);customer deposits continue to grow led by our financial inclusion initiatives, enhanced customer experience and new/improved productofferings.

     

     

    Commenting on the Bank’s results for the nine month period,EmekaEmuwa,Chief Executive Officer said:

     

    “Our corepre-tax profits are up 27% to  ₦12.4bn from N9.8bn during the same period in 2015, fuelled largely by interest income and our thriving retail business. We are encouraged by this performance which comes in the face of a recessionary environment, increased impairments and headwinds in our trade business due to scarcity of foreign exchange.

     

    Our steady effort to build a lowcost, customer centric retail business over the past 18 months is demonstrating results and continues towin us a new,growing retail customerbase, as well as industry recognition with our recent Business Day Award for the Most Improved Retail Bank in Nigeria.

    While the operating environment remains a challenge, we will continue to focus on executing our strategy, defending our loan book and adhering to prudent risk management principles.’

    Speaking further ontheBank’snumbers, ChiefFinancial Officer, OyinkanAdewale said:“Our revenues are up across board and the Bank’s asset yields improved from 14.2% to 16.1% when compared to same period in 2015. Our non-interest revenue is up 27%, excluding one-time gains,on the back of treasury and channel banking revenues in the retail business.

     

    We continue to manage our costof funds,resulting in 14% reduction in interest expenses year-on-year,not withstanding a 9% growth in customer deposits and 25% increase in medium term borrowings.

    Our cost optimisation initiatives continue to yield good results; cost-to-income ratio has improved to 62% from 70% in the previous year. Cost-to-income is buoyed by income and operating expenses in line with expectations in spite of inflationary and devaluation pressures.We will continue to implement our cost discipline initiatives across the Bank to stay within our cost targets.”

     

     

    Bank Nine Months 2016 Financial Summary

     

    Balance Sheet (in billionsof Naira)

    Total Assets

    		 Sep2016

    1,095.4

    		 Dec2015

    998.1

    		 Change

    10%
    GrossLoans&Advances 515.4 370.9 39%
    CustomerDeposits 618.3 569.1 9%
    Shareholders’ Funds 236.7 230.7 3%
    Ratios
    Coverage Ratio(incl. regulatoryrisk reserves) 136% 177% (41%)
    Liquidity Ratio(regulatoryminimum-30%) 42% 43% (1%)
    Loan toDepositRatio 83% 65% 18%
    Non-PerformingLoanRatio 9.4% 7.0% 2.4%

     

     

    IncomeStatement(inbillionsofNaira)

    GrossEarnings

    		 9M2016

    91.4

    		 9M2015

    85.4

    		 Change

    7%
    GrossEarnings** 90.6 82.0 11%
    NetInterest Income 46.4 38.8 20%
    Non-Interest Income 22.1 20.1 10%
    Non-Interest Income** 21.4 16.7 28%
    Gain onsale ofsubsidiaries 0.8 3.4 (76%)
    Credit Impairment 12.8 4.4 >100%
    OperatingExpenses 42.7 41.3 3%
    Profit BeforeTax 13.2 13.2 0%
    Profit BeforeTax** 12.4 9.8 27%
    Profit After Tax 13.1 13.1 0%
    Profit AfterTax** 12.3 9.7 27%

     

     

     

    Ratios
    NetInterest Margin 10.0% 8.8% 1.24%
    Cost toIncomeRatio 62% 70% (8%)
    Return onEquity 7.5% 8.2% (0.7%)
    Return on Equity** 7.0% 6.1% 0.9%
    Return on Assets 1.7% 1.8% (0.1%)
    Return on Assets** 1.6% 1.5% 0.1%
    NetAssetValuepershare

    Earnings Per Share

    		 ₦13.98

    77k

    		 ₦12.98

    77k

    		 ₦1.00

    –
    EarningsPer Share** 73k 57k 16k

     

     

    GroupNineMonths2016Financial Summary

     

    Balance Sheet (in billionsof Naira)                      Sep 2016         Dec.2015     Change

    Total Assets 1,219.6 1,046.9 17%
    GrossLoans&Advances 534.4 388.8 37%
    CustomerDeposits 631.9 570.6 11%
    Shareholders’ Funds 253.1 238.6 6%
    Ratio
    Coverage Ratio(incl. regulatoryrisk reserves) 136% 177% (41%)
    Loan toDepositRatio 85% 68% 17%
    Non-PerformingLoanRatio 9.0% 6.7% 2.3%

     

    IncomeStatement(inbillionsofNaira)

    GrossEarnings

    		 9M2016

    93.4

    		 9M2015

    83.7

    		 Change

    12%
    GrossEarnings** 93.1 84.2 11%
    NetInterest Income 48.1 40.3 19%
    Non-Interest Income 22.5 16.7 35%
    Non-Interest Income** 22.2 17.2 29%
    Gain/(loss)onsale ofsubsidiaries 0.3 (0.5) >100%
    Credit Impairment 12.9 4.5 >100%
    OperatingExpenses 44.6 43.0 4%
    Profit BeforeTax 13.3 9.6 39%
    Profit BeforeTax** 13.0 10.1 29%
    Profit After Tax 13.0 9.3 39%
    Profit AfterTax** 12.7 9.8 29%
    Ratios
    NetInterest Margin 8.8% 8.1% 0.7%
    Cost toIncomeRatio 63% 76% (13%)
    Return onEquity 6.9% 5.5% 1.4%
    Return on Assets 1.6% 1.2% 0.4%
    NetAssetValuepershare ₦14.95 ₦13.77 ₦1.18
    Earnings Per Share 76k 55k 21k
    EarningsPer Share** 74k 58k 16k

     

    *Gain on sale of subsidiaries represent sone-time gains realised on the saleof the bank’ssubsidiaries incompliance with the Central Bank ofNigeria’s Regulation

     

    **Excludes gain on saleof subsidiaries

     

     

  • Union Bank launches UnionFuture

    Union Bank launches UnionFuture

    Union Bank Plc has launched  the UnionFuture account, which held at the Banks ASPAMDA branch. UnionFuture  provides a simple savings plan for customers who are not under a formal payroll scheme. The account will allow them save a minimum amount which they can access in the future to meet any obligation.

    Speaking at the event, Head, Retail Products, Union Bank, Sheahan Arasaratnam, stressed the importance of having money set aside for the future. He also said many Nigerians are self-employed and do not have savings kept aside to cater their needs after active service and this problem can be addressed with the UnionFuture account.”

    He said: “The UnionFuture is a savings account designed to assist customers, especially those in the informal sector, in saving for and securing their future. Customers enjoy seven per cent interest on their UnionFuture account each month, until the person decides to close the account. We want to encourage both existing and prospective customers in the informal sector to leverage on the product, which can go a long way to help them when they become inactive.

    “Besides the regular seven per cent interest, when a customer saves up to N100,000, Union Bank will provide them an Insurance cover of N100,000, which can be accessed anytime it is necessary.”

    Also speaking at the launch, Group Head, Retail Banking of the bank, Ayuba Isaya,   stressed the bank’s commitment to excellent and effective customer service and how the bank will continue to offer simpler and smarter packages.

    “The launch of this product signals a new phase in the savings culture of Nigerians as we set our sights on superseding customer’s expectations while remaining focused on providing smart banking solutions to all our customers,” he concluded.

  • Union Bank wins ITF award

    The Industrial Training Fund of Nigeria (ITF) has announced Union Bank of Nigeria Plc. as the “Overall Best Contributing Employer in Human Resources” for the year 2015.

    The innovative financial institution was presented with the award by the Deputy Director, ITF on Monday, August 8.

    Selected from over 8,000 contributing employers in the Lagos Island Area, Union Bank spends an average of 200 million yearly to train its employees in addition to consistent intake of interns and students on industrial training.

    The financial institution also carries out regular safety training for its people with accordance to the ITF training standards. “Union Bank started its transformation drive 3 years ago and an integral part of that transformation is looking after our people.

    “Training is definitely a critical part of the wellbeing of the employees of any organisation and therefore, we ensure to invest a lot in the development of our people so it is great to be recognised for the effort we put in.” said Kandolo Kasongo, Executive Director and Chief Risk Officer, Union Bank.

    Congratulating Union Bank on its effort, Mrs. Dorothy Aroloye, Deputy Director and Area Manager, Lagos Island, Industrial Training Fund, said: “For about three years of being the Lagos Island Area Manager, Union Bank has shown consistent interest in the development of its workers. The Bank has contributed six solid training programmes that generated over six million Naira to the Industrial Training Fund alone. I salute the training arm of the bank for their dedication and ITF remains committed to helping Union Bank in the most positive way to further develop their Human Resource.”