CITIZENS COMPASS – Union Bank of Nigeria Plc Group says it rewarded over 611 customers with the total sum of ₦55.5 during its Year 2022 Financial Year which ended on December 31, 2022.
This was contained in Year 2022 financial statements which stated that the bank grew its deposits by 14% in the financial year which ended on December 31, 2022.
The bank stated this in its 2022 audited financial report made available to Citizens Compass.
Union Bank said over 611 customers were rewarded with a combined sum of ₦55.5 million
According to the financial report, the bank grew its retail deposits by 14% to N675.8 billion from N594.9 billion in 2021.
The report stated some of the initiatives which contributed to this growth as, Save & Win Palli Promo which aims to generate low-cost deposits.
According to the bank, the financial year reflected strong financial performance despite macroeconomic headwinds.
Among the strategies adopted by the bank was target savings campaign and workplace banking, by priotising inclusion and sustainability while focusing on business growth.
On target savings campaign, Union Bank rewarded 596 customers with ₦26 million during its flagship target savings campaign and closed out its five-year Target Savings Product (TSP) as ten customers were rewarded with cash prices of ₦5 million, and 375 customers with sports jerseys.
In the financial year, Union Bank re-launched workplace banking through exclusive propositions designed to offer employees convenience while providing support to achieve their goals and aspirations.
On citizenship, sustainability, and innovation,it prioritised inclusion and sustainability while focusing on business growth.
This impacted its employees, customers, and its communities while contributing towards the United Nations Sustainable Development Goals.
Active users
According to the statements, active users on UnionMobile increased by 15.7% to 3.8 million users, and active UnionDirect Agents grew by 62.7% to 51,737.
This led to an increase in transaction value and volume on UnionMobile by 121% and 20.4%, respectively.
” In 2022, we launched a chatbot that enabled real-time interactions with customers.
” The chatbot has resolved 1.3 million customer complaints, demonstrating its effectiveness in streamlining the complaints resolution process.
” In addition, we have made several other investments to enhance our customers’ experience. As a result, we have seen significant improvements in the efficiency and efficacy of our customer complaints resolution.
Speaking on the financial year, Chief Financial Officer Joe Mbulu said the financial summary includes Balance Sheet (in billions of Naira), Total Assets,Gross Loans & Advances and Customer Deposits.
Others are Shareholders’ Funds Ratios, Coverage Ratio (incl. regulatory risk reserves) and Average Liquidity Ratio (regulatory minimum – 30%) among others.
Commenting on the results, Mudassir Amray, MD/CEO, said,“Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers. On the back of this, we are increasing our customer acquisition and engagement, translating into higher revenues across our regions.
The Bank’s gross earnings grew by 19% to N208.1 billion from N175 billion in 2021. Whilst non-interest income declined marginally by 1.0%. Net interest income after impairment grew 26.1% to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1% from N20.5 billion recorded in 2021.
” In 2023, we will remain focused on executing our strategic initiatives, which are centered on pursuing additional opportunities to diversify our revenue sources while strengthening our core business. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities.
” As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them.”
Commenting on the results, Mudassir Amray, MD/CEO, said, “Despite the macroeconomic headwinds of 2022, we recorded strong performance across key financial and operational indicators. We were focused on our strategy of deepening our core business segments whilst enhancing our digital channels and service propositions to customers.
”We are increasing our customer acquisition and engagement, translating into higher revenues across our regions.
The Bank’s gross earnings grew by 19% to N208.1 billion from N175 billion in 2021. Whilst non-interest income declined marginally by 1.0%. Net interest income after impairment grew 26.1% to N55.8 billion from N44.2 billion in 2021 on the back of increasing responsible risk assets. Profit before tax closed at N30.2 billion, representing a growth of 47.1% from N20.5 billion recorded in 2021.
” 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. We also look forward to completing the merger of Union Bank of Nigeria and Titan Trust Bank, which began in 2022. The transition has gone smoothly, and I am confident that the combination will make us more formidable and well-positioned to capitalise on market opportunities.
” As we progress into 2023, I have no doubts that we will scale through all the macroeconomic pressures and sustain this growth momentum with continued support from the new core investors and board and continued trust from our customers to serve them. ” He said.
Speaking on the financial year, Chief Financial Officer Joe Mbulu said, ““Our financial performance is a testament to the disciplined execution of our plans for the year and resilience against all odds. While pursuing liability generation and responsible risk assets, we maintained operational efficiency, managing cost drivers and avoiding wastage.
Operating expenses increased marginally by 0.43% due to increased non-discretionary regulatory costs.
” Our cost-to-income ratio dropped to 72.5% from 79.4% in 2021 due to cost- control measures implemented during the year.
” The Bank’s balance sheet remains strong, with total assets increasing by 8.8% to N2.79 trillion due to growing loans and advances to customers. We expanded our net loan book by 11.5% from N868.8 billion in 2021 to N968.9 billion in 2022. In addition, customer deposits increased by 8.8% to N 1.48 trillion.
” While we seek to grow our risk assets, maintaining quality assets remains a key priority. As a result, our NPL ratio reduced from 4.3% to 4.0%, and the capital adequacy ratio remained within regulatory limits at 14.4%, ” said the Financial Officer.
