Union Bank’s Improved Performance Commended by Shareholders
For shareholders of Union Bank of Nigeria (UBN) Plc it is a win-win for all as the bank’s revenue grew by eight per cent to N126.6b billion from N117.2 billion posted in 2015 while profit rose to N15.7 billion which represents six per cent rise when compared to N14.9 billion recorded in the previous year.
The shareholders have, therefore, applauded the bank’s improved performance and corporate governance policy, and urged the bank to create more innovative products that would attract depositors and boost its customer base.
Mr. Moses Igbrude, the general secretary, Independent Shareholders Association of Nigeria, at the 48th annual general meeting said the bank has made remarkable efforts to return the bank to profitability and added that the bank should be more innovative, especially in the areas of technology application to enable them attract customers who left the bank in the past.
“They have done well. The management has been able to reposition the bank to profitability. The management needs to lay a solid foundation for the future. They should deploy new technology, develop their brand and make their branches more attractive”, Igbrude said.
Also speaking at the meeting, Mr. Timothy Adesiyan, president, Nigerian Shareholders Solidarity Association, urged the bank to improve on its digital banking platform to increase visibility, adding that it would attract more customers into the bank, and ultimately boost revenue.
Mr. Cyril Odu, chairman of the bank, said the bank would focus more on innovation to drive its business operations. He added that the bank remains poised on identifying growth opportunities in the economy and leveraging such to develop stronger brands.
The Managing Director of the bank, Emeka Enuma, said the bank has commenced necessary steps to a successful rights issue of N50 billion to be launched by the second quarter of 2017.
“In 2016, we would focus on executing our priorities across all our business segments, especially in the retail space, with an aggressive strategy to increase adoption of our alternate channels. Our success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of 6 per cent compared to 2015.
“Our research-led, customer-centres, product development strategy, coupled with skilled sales force and targeted marketing campaigns boosted our customer deposit base by 15 per cent compared to 2015, and led to a 73 per cent increase in new-to-bank customers.
“While the operating environment remains a challenge, we are focused on our 2017 priorities which include raising Tier 1 capital to execute our growth agenda across our retail, commercial and corporate businesses, particularly transaction banking and value chain”, the MD said.
Enuma said the bank would maintain its focus on growing its retail business, relying on its tailored products alternative banking and sales channels.
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