UNION Bank of Nigeria Plc,
UBN, has said that part of its
strategies in repositioning
the bank in 2016 is to ensure
reduction of the bank’s nonperforming
The Chief Executive
Officer, UBN, Mr. Emeka
Emuwa, while addressing
stock brokers and investment
community at the bank’s
facts behind the figures on
the floor of the Nigerian
Stock Exchange, said the
reduction would enable the
bank reposition for better
The bank reported a
nonperforming loan of
N383 billion for the first
quarter ended March 31,
2016, up two per cent from
N370 billion recorded in
the corresponding period of
2015. Emuwa also noted that
the bank would optimise
its branch network in the
country to enable it expand
customer base. Commenting
on the bank’s first quarter
results, the chief executive
officer said: “Our first
quarter results reflect steady
progress on the execution of
our strategic priorities.
The bank’s core PBT in
Q1 2016 is up significantly
by 85 per cent to 4.7 billion
compared to 2.5 billion
in the same quarter last
year. “With the sale of nonbanking
subsidiaries near
completion, the bank is now
focused on growing and
delivering results through its
core banking business.
“Customer deposits grew
nine per cent in the year
to March 2016, compared
to March 2015, reflecting
increased customer
confidence in our service
channels, new product
offerings and a re-energised
brand identity.
“Our priorities to sustain
growth in 2016 remain
focused on growing our
deposit base and new
customer acquisitions as
well as driving gains in
transactional income. We
will continue leveraging the
technology and operational
platform we have invested in,
whilst proactively managing
our risks and operational
On his part, the Chief
Financial Officer, Oyinkan
Adewale, said: “The bank
delivered strong results this
first quarter. Our focus on
customer deposit growth has
led to 16 per cent interest
expense reduction as we rely
more on low cost deposits to
fund the bank.
This trend is expected
to continue and should
moderate funding costs
and improve net interest
margins for 2016. “Noninterest
revenue continues
to grow, driven by securities
trading, e-business and
other transactional fees.
“Excluding 2015 one-off
gains, we were able to grow
core revenues by nine per
“Given our continuing
investment in technology
and network infrastructure,
we have seen a slight
increase of three per cent
in operating expenses
this quarter compared to
Q1 2015. This short term
increase is expected to
normalise over the course of
the year.”
`The Chief Executive
Officer, Nigerian Stock
Exchange, Mr. Oscar
Onyema, commended the
new management of the
bank for their resilience to
ensure that they reposition
the bank. Onyema urged
the bank to always sustain
a culture of excellence and
high level of compliance to
regulatory guidelines.

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