The Union Bank of Nigeria (UBN) Plc has announced the payment of a dividend per share of 25 kobo to shareholders as return for the 2020 business year.
The bank, in a statement released over the weekend, explained that the payment of the dividend was part of the highlights of the audited report and accounts of the bank for the year ended December 31, 2020,
The results showed modest growth in key income lines and significantly improved fundamentals, notwithstanding a constrained operating environment largely due to the impact of the COVID-19 pandemic.
The audited report for the year ended December 31, 2020 showed that the bank recorded growths across key income lines with net income after impairments rising by 8.3 percent from N95.5 billion in 2019 to N103.4 billion in 2020. Profit before tax also rose by 2.8 percent from N24.7 billion to N25.4 billion.
The overall performance was largely driven by the growth in loan book, with 23.8 percent increase in gross loans to N736.7 billion in 2020 as against N595.3 billion in 2019.
The bank’s customer deposits hit a milestone during the year, crossing the N1 trillion mark to N1.13 trillion from N886.3 billion, an increase of 27.1 percent.
Commenting on the financial result of the bank, the Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa, said: “This demonstrates the strong foundations we have built, as we continue to deliver against our target of becoming a leading financial institution in Nigeria.”
He said: “Our UnionOne and Union360 platforms for businesses grew by 11 percent from 25,000 users to 27,700 users. Ninety-four percent of transactions in the bank are now done digitally, up from 89 percent in 2019.
“We also aggressively grew UnionDirect, our agent network, by six times from 3,100 to 18,100 in line with our focus on our retail business.
“With our investments yielding positive results, we are well-positioned as a strong leader in the retail and digital space.
He said the bank will in 2021 focus on enhancing revenues and shareholder value by revving up customer acquisition, engagement, and transactions through seamless customer journeys and an optimized service delivery platform.
According to him, “As I retire following eight years of rebuilding and repositioning this storied institution, I am convinced that with the excellent management team and a clear strategy in place, Union Bank is well-positioned to continue to compete and deliver value to its shareholders.”