Post Views: 96 The board of Union Bank of Nigeria Plc, on Monday, presented its unaudited report for the first quarter ended March 31, 2019, showing t...
The board of Union Bank of Nigeria Plc, on Monday, presented its unaudited report for the first quarter ended March 31, 2019, showing that the operations during the period were not altogether inspiring, given the slide in interest income, trading income, fee, and commission income, and consequently, the gross earnings.
Profit for the period was however helped by the drop in loan loss provisions, healthier cash recoveries and increased other operating income.
Gross earnings dropped from N39.466bn in the first quarter of 2018 to N37.675bn; after interest income slipped from N31.674bn to N26.859bn, while interest expense increased to N14.81bn from N13.843bn, resulting in net interest income of N12.049bn. This dropped by N5.782bn, or 32.43% from N17.831bn in the prior Q1.
Net impairment charge for the period was positive at N806m, as against the previous N2.349bn, resulting in net interest income after impairment charge for credit losses of N12.855bn, as against the N15.482bn reported in the corresponding period of last year.
Net fee and commission income rose marginally from N3.276bn to N3.765bn; net trading income dropped from N3.345bn to N2.267bn; while cash recoveries amounted to N2.794bn from N304m. Other operating income climbed from N867m to N1.188bn; bringing non-interest income during the period to N10.816bn, up by N3.024bn or 38.81% from N7.792bn in the prior Q1.
Operating income was also flat at N23.672bn, compared to the n23.274bn in 2018; personnel expenses dropped to N8.785bn from N7.926bn; other operating expenses dropped to N7.832bn from N8.309bn, with the bulk being the N1.866bn Asset Management Corporation of Nigeria (AMCON) surcharge accounting for N1.866bn from N1.668bn; as well as the N1.074bn Nigeria Deposit Insurance Corporation (NDIC) premium, up from N954m in 2018, just as expenses on software gulped N1.326bn, compared to N1.071bn in the prior Q1. Depreciation and amortization for the period stood at N8.309bn, resulting in total expenses of N18.496bn, up from N17.867bn.
Profit before tax, therefore, stood at N5.438bn, as against the N5.407bn reported in the corresponding period of last year; while income tax rose from N119m to N164m; following which profit after tax stood at N5.274bn, as against the N5.288bn, leaving Earnings Per Share at 18 kobo, same as last year.