Group Managing Director, Union Bank Plc, Mrs Funke Osibodu
The management of Union Bank Plc Thursday said the rescued bank recorded a profit after tax (PAT) of N118 billion for the year ended December 31, 2010, as against the loss after tax of N281 billion it posted in the previous year.
A statement from the bank also showed that it achieved a profit before tax of N47.4 billion in the year under review, compared with a loss after tax of N286.1billion in December, 2009.
The bank attributed the significant increase in its PAT to deferred tax credit as a result of huge losses sustained in the previous year
The statement which also cited a copy of the bank’s audited results released to the Nigerian Stock Exchange (NSE) Thursday, showed that the Union Bank Group, recorded a PAT of N106.5billion for the period under review, indicating a recovery from a loss after tax of N281.3billion posted in 2009.
It further disclosed that the Group recorded gross earnings of N130.4billion, while the Bank accounted for N114billion of the total earnings, signifying that the Group was able to grow its businesses during the review period.
It added: “As a result of the cost-cutting measures adopted by management, the bank's operating expenses reduced once annualized and adjusted for exceptional items from N61 billion for 9 months of 2009 to N64.2 billion for 12 months of 2010.
The strategy of the Bank towards improving the quality of its risk assets and improving liquidity paid off as the group reduced its non-performing loans significantly largely through sales of such loans to the Assets Management Corporation of Nigeria (AMCON).”
Commenting on the performance, Group Managing Director and Chief Executive, Union Bank Plc, Mrs Funke Osibodu, was also quoted to have attributed the feat to the major progress recorded in recoveries, the credit from the AMCON and other recoveries and write backs pursued and executed vigorously by the management.
Commenting on the performance, Group Managing Director and Chief Executive, Union Bank Plc, Mrs Funke Osibodu, was also quoted to have attributed the feat to the major progress recorded in recoveries, the credit from the AMCON and other recoveries and write backs pursued and executed vigorously by the management.
The Union Bank boss also stated that the profit level was driven by improved operating efficiency, reduction in administrative overheads, among other costs.
Osibodu emphasised that the Bank’s Management would deliver on its promise to completely recapitalise the bank before the expiration of the September 30, 2010 deadline stipulated by the Central Bank of Nigeria (CBN).
Osibodu emphasised that the Bank’s Management would deliver on its promise to completely recapitalise the bank before the expiration of the September 30, 2010 deadline stipulated by the Central Bank of Nigeria (CBN).
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