Union Bank’s annual profit doubles as trading income hits N24bn

From Abubakar Yunusa, Abuja

Nigeria’s second oldest lender Union Bank built a more than two-fold surge in net profit substantially from a strong net trading income in 2022, it’s audited financial report has shown.
Standing at N23.6 billion, net trading income – the money earned from transactions in financial instruments – accelerated by 173.3 per cent compared to interest income, typically the biggest contributor to banks’ revenues, which only grew by 29.5 per cent.
Within the period, many other banks boosted profit through hikes in lending rates that enabled them to charge more for loans.
Gross earnings were up by 18 per cent at N209.1 billion, non-interest income contributing two-fifths of that, according to the audited financial report published on Wednesday.
The bank’s impairment charge, which accounts for the cash it provisioned for defaults by borrowers, totalled N3.2 billion in contrast to a net impairment reversal of N34 million a year earlier.
Net fees and commission marginally declined by 6.6 per cent, following a drop in credit-related fees and commission.
“In 2023, we will remain focused on executing our strategic initiatives, which are centred on pursuing additional opportunities to diversify our revenue sources while strengthening our core business,” said Mudassir Amray, Union Bank’s managing director, in a separate document.
“We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022,” he added.
The business combination involving the two lenders is to be delivered this year, well over a year after the deal of relatively new Titan Trust acquiring Union Bank was announced.
Last year, a board member of Union Bank who does not want his name in print, told Nigerian online newspaper that the corporate name “Union Bank” will be retained after the merger.
Titan Trust Bank, a subsidiary of the conglomerate TGI Group, backed by Dutch-Nigerian magnate Cornelius G. Vink, has 94.1 per cent ownership in Union Bank.
After-tax profit for the period climbed 131.6 per cent to N39.2 billion from N16.9 billion a year earlier.
The bank is not paying dividend for 2022 the same way it did not announce cash rewards for shareholders for 2021, according to its annual report.