Union Bank posts N7.62b profit after tax in Q1

FOR the first quarter ended March 31, 2012, Union Bank of Nigeria Plc (UBN) recordedN7.618 billion profit after tax compared with N4.51 billion in the same period in 2011.The report and accounts of the bank, presented in compliance with the International Financial Reporting Standard (IFRS), showed that group bottom-line performance was driven by significant improvement in the profitability of the bank as net profit rose by 127.2 per cent to N6.32 billion in 2012 as against N2.78 billion in 2011.Further analysis showedbasic earnings per share of N1.17 in first quarter 2012 compared with 18 kobo posted in comparable period of 2011 and a loss per share of N14.06 recorded for the full-year ended December 31, 2011.The report showed that Union Bank continued to improve on the efficiency and profitability of its core banking operations as net interest margin improved from 72.9 per cent to 74 per cent. Interest income stood at N20.8 billion while net interest income was N15.33 billion. Net fee and commission income rose from N3.33 billion to N6.63 billion, representing an increase of 99 per cent.Shareholders' funds stood at N193.84 billion in 2012 compared with deficit of N123.7 billion in first quarters of 2011. Total assets stood at N1.1 trillion with deposit of N565.34 billion in 2012.A statement quoted the Group Managing Director of UBN Plc, Mrs Funke Osibodu, saying,the first quarter report was indicative of the efforts by the board and management to return the bank to its 'place of pride as a foremost financial institution that consistently creates value for all stakeholders.'She explained that with the ongoingintensive restructuring, 'the bank has returned from the abyss of a bailed out bank with negative capital to one of the most promising financial institutions in Nigeria.'According to her, the spirit of the new Union Bank is seen in its 'ultra-modern remodeled branches, courteous and efficient service delivery, vast technology and increased attention to customer-centric products and services that treat each customer as a most valuable one.'Commending the board, staff and all stakeholders that supported the management through the recapitalisation exercise, Osibodu said the performance of the bank has vindicated the management.In a three-year forecastunveiled to shareholders recently, the bank said it expected that shareholders would have as much as N47 billion in net earnings.According to the forecasts, profit before tax is expected to be about N66 billion for the three-year period between 2012 and 2014.Profit before tax is expected to be N13.1 billion in 2012 and thereafter to N24.6 billion and N27.7 billion in 2013 and 2014 respectively.
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