Union Bank posts N17.7bn PAT for 2015; targets 60% cost to income ratio in 2016

Union Bank of Nigeria (UBN), Thursday said it was targeting cost to income ratio of 60 per cent for the financial year ending December 31, 2016.
Mr Emeka Emuwa, the bank’s Chief Executive Officer, stated this at the company’s ‘facts beyond the figures’ at the Nigerian Stock Exchange (NSE) in Lagos.
Emuwa said that the bank would ensure drastic reduction in cost to income ratio against the 67 per cent posted in the 2015 financial year.
He stated that the bank’s cost to income ratio stood at 183 per cent in 2011, 96 per cent in 2012, 71 per cent in 2013 and 67 per cent in 2014.
The chief executive officer said that the bank would also embark on strategic partnerships to ensure sustained growth in 2016 and beyond.
Emuwa said that the bank would improve its business process and branch network, and channel optimisation to sustain growth and development.
He stated that the company would be a leading mid-tier bank by 2018 on a trajectory to be top tier by 2020.
According to him, the bank will ensure client retention and acquisition, risk management and recoveries, as well as cost management.
On non-payment of dividend, Emuwa said that the bank was not able to declare dividend due to negative retained earnings.
He stated that regulatory policy stipulated that a company must not declare dividend with negative retained earnings.
Emuwa pointed out that the bank would engage professionals to ensure that the impediments that resulted to the accrued cost were removed.
Also speaking, Mrs Oyinkan Adewale, the bank’s Executive Director and Chief Financial Officer, explained that its 6.99 per cent non-performing loan (NPL) had almost 200 per cent coverage.
Mr Oscar Onyema, NSE Chief Executive Officer, commended the bank for timely release of information at the nation’s bourse.
Onyema said that “stock market is driven by timely relevant and accurate information.”
He said that UBN was one of the oldest and most respected banks in the country.
Onyema commended the management of the bank for an improved result in spite of challenging and economic headwinds in the country.
He stated that the exchange would remain committed to zero tolerance to market infraction and strict compliance to corporate governance.
The bank posted gross earnings of N118.4 billion for the financial year ended December 31, 2015 against N109.8 billion in the preceding year.
Profit after tax stood at N17.7 billion compared with N20.5 billion achieved in 2014, while profit before tax dropped to N18.1 billion in contrast with N20.7 billion in the previous year.