Union Bank of Nigeria, the country’s second-oldest bank, has reported 138% increase in pre-tax profit for the financial year 2023, amounting to N71.8 billion. This impressive performance is largely due to a significant growth in gross earnings which rose by 89% to N393.6 billion.
Key Financial Highlights:
- – Gross Earnings: N393.6 billion (89% YoY growth)
- – Net Interest Income: N90.4 billion (53% YoY growth)
- – Net Fee and Commission Income: N17.7 billion (39% YoY growth)
- – Net Trading Income: N118.3 billion (402% YoY growth)
- – Profit Before Tax: N71.8 billion (138% YoY growth)
- – Profit After Tax: N65.9 billion (127% YoY growth)
However, the bank incurred a net foreign exchange (FX) revaluation loss of N226 billion thereby exempting it from the 70% windfall tax on realized net FX gains.
Ownership Controversy:
The bank’s ownership has been embroiled in controversy, with Titan Trust Bank’s 100% takeover bid sparking regulatory scrutiny. The Central Bank of Nigeria (CBN) raised questions about the legality of the transaction which culminated in a probe into its status. The takeover’s status remains uncertain, with Union Bank no longer listed on the NGX.
Capital Requirements:
About N51.9 billion must be added for Union Bank to comply with the minimum capital requirement for a national banking license worth N200 billion as presently its paid up share capital stands at N148.1 billion.
