UNION Bank of Nigeria Plc has posted a profit before tax of N3.55 billion for the first quarter, ended March 31, 2010 - indicating a rebound from loss profile.
In a bid to clean its books following the intervention of the Central Bank of Nigeria (CBN) last August, Union Bank ended 2009 with a loss after tax of N281.2 billion for the nine months ended December 31st, 2009.
However, 2010 has started well for the bank, given its first quarter performance released at the Nigeria Stock Exchange (NSE) yesterday.
According to the result, which has just been approved by the CBN, Union Bank posted gross earnings of N34.235 billion for the three months ended March 31, 2010, as against N51.25 billion for the three months ended March 30, 2009.
The bank posted profit before tax of N3.56 billion in the first quarter of 2010, compared with a loss of N932 million in the corresponding period of 2009, which was before the intervention of CBN.
In the same vein, profit after tax stood at N3.33 billion as against a loss of N978 million in the corresponding period of 2009.
Market analysts have lauded the performance, saying it portrays the efforts the management has put into reviving the financial conglomerate.
According to them, considering the image battering Union Bank and the other banks rescued by the CBN went through, the performance is highly commendable and showed the high level of customer loyalty the bank still enjoys.
Reacting to the performance of the bank, President, Association for the Advancement of the Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said it is very encouraging and it shows that the Central Bank of Nigeria (CBN) is succeeding in reviving the rescued banks.
“It is a good development and it shows that the apex bank is succeeding in the task of reviving the banks. My advice is that the management of the banks should not derail and should remain determined to putting the banks back on their feet and put smiles on the faces of shareholders,” he said.
Speaking in the same vein, the Chairman, Ibadan Zone Shareholders Association, Chief Oluremi Oyepeju, said the results showed that Nigerians are capable of managing the banks and making profit and therefore, called on the CBN not to bring in foreign investors.
“I am one of the people who has been calling for the rescued banks to publish their results and the result of Union Bank is encouraging. It has proved that Nigerian managers and investors are capable of resuscitating these banks.
“There is therefore, no need for the CBN to sell the banks to any foreign investor. The CBN should allow the existing shareholders to recapitalise the banks, ” he said.
The Group Managing Director and Chief Executive Officer, Mrs. Funke Osibodu, recently expressed optimism that Union Bank would regain its rightful position in the banking industry now that its books have been cleaned up.
She said that the bank is poised to exploit the business opportunities arising from the gradual recovery in the global economy, stressing the need for the esteemed customers to remain steadfast with the bank and increase their patronage.
When the management assumed office last year, Osibodu said the focus would be specifically on risk management/control, marketing and business development.
Going by the profit before tax of 12 banks based on their 2010 first quarter results, First Bank Plc recorded N15.42 billion; Zenith Bank, N13.2 billion; Guaranty Trust Bank, N13.01 billion; Access Bank, N5.29 billion; Syke Bank, N3.17 billion; Stanbic IBTC, N2.47 billion; Diamond Bank, N2.06 billion; Sterling Bank, N1.4 billion, Ecobank Nigeria, N1.21 billion; Finbank, N1.165 billion and Wema Bank, N764 million. Union Bank emerged the sixth most profitable, with a profit before tax of N3.56 billion.