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Union Bank Of Nigeria Plc Group Audited Financial Statements For The Year

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Union Bank Pledges Improved Access to Capital for Small Businesses at BusinessDay 100 SME Conference

Union Bank Of Nigeria Plc Group Audited Financial Statements For The Year

Bank Financial Highlights:

● Gross Earnings: up 19% to ₦208.2 billion (₦175.0 billion in 2021), driven by strong
growth in Net Interest Income.
● Net Interest Income: up 33% to ₦59.1 billion (₦44.3 billion in 2021) driven by growth in earning assets.
● Net Operating Income after impairments: up 10% to ₦110 billion (₦99.7 billion in 2021).
● Profit before Tax: up by 47% to ₦30.2 billion (₦20.5 billion in 2021).
● Operating Expenses: marginally grew by 0.4% to ₦79.4 billion (₦79.2 billion in 2021), reflecting tight cost control despite inflationary pressures.
● Gross Loans: up 11% at ₦1.0 trillion (₦899.1 billion in December 2021) as we expand our lending to vital economic sectors of opportunity.
● Customer Deposits: up 9% at ₦1.48 trillion (₦1.36 trillion in December 2021) as we expand our product base and digital channels.
Key Operational Highlights:
Retail & Digital
Digital

• Channels & Platforms: Union Bank in 2022 invested in strengthening its technology architecture to drive key processes and serve more customers through digital and agent channels. Consequently, 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.

• Digital Propositions: Our priority has been to venture into unexplored avenues within the digital space to generate fresh revenue streams for the Bank. As part of this strategy, we have broadened the usage of our personal finance and lifestyle investment application, M36, which was first introduced in 2021. M36 empowers customers to grow, manage and invest their wealth in high-yield instruments through the self-service platform.

Retail Offerings

The Bank grew its retail deposits by 14% to N675.8 billion from N594.9 billion in 2021. Some of the initiatives which contributed to this growth include:

• Save & Win Palli Promo 2: We rolled out the campaign’s second edition and rewarded over 611 customers with a combined sum of ₦55.5 million. The promo aims to generate low-cost deposits.

• Target Savings Campaign: In time for the World Cup, we rewarded 596 customers with ₦26 million in our flagship target savings campaign and closed out our five-year Target Savings Product (TSP) – UnionKorrect Qatar. Ten customers were rewarded with cash prices of ₦5 million, and 375 customers with sports jerseys.

• Workplace Banking: We re-launched Workplace Banking, our exclusive proposition designed to offer employees convenience while providing support to achieve their goals and aspirations.

Citizenship, Sustainability, and Innovation
• In 2022, we prioritised inclusion and sustainability while focusing on business growth. In doing so, we impacted our employees, customers, and the communities we serve while contributing towards the United Nations Sustainable Development Goals.

― UnionCares: As a yearly tradition, we extend our assistance to the community by providing food boxes to those in need. In 2022, our staff
contributed to this cause by distributing over 1,700 food packages to families all over Nigeria. Furthermore, we extended our support to 15 Non-Governmental Organisations (NGOs), such as the Chess in Slums Foundation and the Special Olympics Nigeria, by providing donations to supplement their commendable efforts.

―Quality Education:We partnered with impactful organisations, including Give Girls a Chance and Child Lifeline, to provide full scholarships to twenty girls and ten boys in Abuja and Lagos. As part of our Financial Literacy Day and World Savings Day activities, we engaged with more than 4000 students and their teachers.

― Youth Empowerment and Development: In July 2022, we successfully graduated 52 new ‘Techies’ from our first-ever Tech Job Boot camp. This recruitment and training program has significantly contributed to accelerating our go-to-market strategy and further consolidating our position as a formidable player in the financial sector.

Union Bank has been a long-standing supporter of LEAP Africa since 2013, enabling them to empower and equip 170 young social innovators and entrepreneurs to scale their community-changing ideas sustainably over the years. Moreover, our sponsorship of the 2022 Leadership, Empowerment, Achievement, and Development (LEAD) Camp by Junior Achievement Nigeria has empowered more than 300 young girls with critical thinking skills. Through this initiative, we have impacted more than 700 girls over the past eight years.

― Employee Volunteering: Our employees have shown unwavering compassion towards communities and social causes. In 2022, over 265 of our employees devoted nearly 1000 hours to volunteering for various bank- sponsored initiatives. These initiatives included mentoring sessions with the Women’s Technology Empowerment Centre (WTEC), which aims to promote women’s participation in Science, Technology, Engineering, and Mathematics (STEM), financial literacy drives, SME workshop clinics with social innovators, and visits to orphanages to extend their support.

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 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.”

Speaking on the FY 2022 numbers, 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%.

Financial Summary

Balance Sheet (in billions of Naira) Total Assets
Gross Loans & Advances
Customer Deposits
Shareholders’ Funds

Ratios

Coverage Ratio (incl. regulatory risk reserves)
Average Liquidity Ratio (regulatory minimum – 30%)
Non-Performing Loan Ratio Net Asset Value per share Capital Adequacy

PRESS RELEASE

Who is afraid of Fidelity Bank?

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Who is afraid of Fidelity Bank?

A lot of mischief is going on in the banking sub-sector of Nigeria’s financial ecosystem since the Central Bank of Nigeria (CBN), on June 3, 2024, revoked the banking licence of Heritage Bank Plc.

The not-so-subtle campaign by some faceless groups to demarket an otherwise solid financial institution like the Fidelity Bank Plc., however, has not escaped the attention of discerning banking publics. But it is a mischief taken too far.

In revoking the banking licence of Heritage Bank, the CBN made it clear that its board and management have been unable to improve the bank’s financial performance, a situation which the country’s apex bank says constitutes a threat to the country’s financial stability.

A statement by Mrs. Hakama Sidi Ali, Ag. Director, Corporate Communications of the CBN, said it acted in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

Many Nigerians, particularly those abreast of the goings on in the banking industry did not raise any eyebrows at the news of the revocation and subsequent appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator.

But since then, mischief makers have been bandying the names of other banks – Fidelity Bank, Wema Bank, Polaris Bank and Unity Bank – that will go the Heritage way. To make their spurious claims seem real, they recirculated a circular issued by CBN on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris banks as though it was issued on June 10, 2024.

And even when the CBN, while insisting that the case of the now defunct Heritage Bank was an isolated one, stated unequivocally that allegations of further revocation of licences prior to the completion of the bank recapitalisation exercise were mere fabrications of those who didn’t wish the banking sector well, such insinuations have persisted.

But the question that continues to concentrate the minds of many Nigerians is: Why Fidelity Bank? Of course, the question is pertinent because even if the January 10 notification memo dissolving the boards of Union, Keystone and Polaris banks is taken to mean that the banks were in trouble, Fidelity Bank was not one of them.

It is, however, instructive that this mischief has become more strident in the last one week since Fidelity Bank signed the necessary documentation to raise about N127.1 billion from a public offer and rights issue to its existing shareholders to raise its capital base in line with the CBN’s fresh capitalisation directive.

The bank is eyeing N97.5 billion fresh funds from its public offer and N29.6 billion from its rights issue which offers existing shareholders one new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share. For the Public Offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share when the acceptance and application lists for the rights issue and public offer open on Thursday, June 20, 2024.

Speaking at the signing ceremony which held at the board room of the bank’s head office in Lagos on Wednesday, June 5, the Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, disclosed that “the proceeds of the combined offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.”

Read Also: Photos: Dr. Bldr. Abdulhakeem Odegade, Akmodel Group MD, Reuben Abati, Dele Momodu, Others Receives Award At South-West Investment Summit

With an international operating licence from the CBN, Fidelity Bank is mandated to raise its capital base to N500 billion within the next two years and for a bank that is sure of its business fundamentals, it is not a surprise that it has effectively positioned itself at the forefront of achieving the revised minimum capital requirements for Nigerian commercial banks. No other bank is yet to embark on the process.

Could that be the reason for the campaign of calumny? If it is, then those on this demarketing campaign are tactless and dim. They would have known that the campaign died even before it took off.

But the dim-wittedness of the agents of doom beggars belief. If not, how could one envisage that one of the high-flying financial institutions in Nigeria could be at the verge of being liquidated? What explanation will even the CBN give for taking such a step because the truth remains that if Fidelity Bank is declared insolvent today, then no other bank is safe.

Why?

Since Fidelity Bank was incorporated in 1987 and began operations in 1988, it has not looked back. Though it started with a Merchant Banking license, it converted to a commercial bank in 1999 in a deliberate push to grow as a private limited liability company. Yet, not satisfied with playing the second fiddle, the bank transmuted into a Public Limited Company in August of the same year. Since then, it has grown from being a marginal player to one of the industry giants, securing its universal banking license in February 2001.

In 2005 during the Chukwuma Soludo-engineered consolidation exercise, Fidelity Bank acquired the then FSB International Bank Plc. and Manny Bank Plc. to become one of the top 10 Nigerian banks. Six years after the consolidation, the bank was ranked not only the seventh most capitalised bank in Nigeria but also the 25th on the African continent. In 2011, it obtained its international banking license and following its renewed retail and digital banking drive, was ranked the fourth best bank in Nigeria in the retail market segment in the 2017 KPMG Banking Industry Customer Satisfaction Survey (BICSS).

Today, Fidelity Bank has presence in all the states and major cities in Nigeria and continues to rank among one of the ten main banks in the country by tier-one capital of nearly $1 billion.

In a report on April 11, 2024 titled, “Fidelity Bank in 2024: A Peek Under the Banking Bonnet,” Proshare, a financial services information provider wrote: “In two decades, Fidelity Bank has sweated its assets to grow gross earnings to N337.05 billion in FY 2022, with an average annual growth rate of 30.3 per cent. The group has diversified its gross earnings, averaging 16 per cent from non-interest income and 84 per cent from interest income. The consistent rise in digital income and foreign exchange gains appears to have supported the continuous rise in the lender’s non-interest income, providing a buffer for rising operating costs.”

Proshare analysts also estimated that Fidelity Bank will rise to full Tier 1 status in its next Tier 1 Banking Sector Report even as it currently leads second-tier banks in gross earnings, profitability, total assets, customer deposits, loans and advances.

In its report on the best performing banks in Q1 2024 based on pre-tax profit, Nairametrics, an online business magazine, said: “Fidelity Bank Plc. posted a pre-tax profit of N39.5 billion, marking a 120 per cent growth from the N17.9 billion pre-tax profit recorded in Q1 2023. During the quarter, the bank posted a net interest income of N99.6 billion, marking a 90 per cent YoY growth from Q1 2023. Fidelity Bank posted gross earnings of N192.1 billion during the quarter, as it also recorded a net income of N31.4 billion, up by 101 per cent YoY from N15.7 billion as of Q1 2023.”

Based on its outstanding financial performance, the bank was voted the most trusted wealth management company for 2023, earning top rankings for “financial soundness, quality of products and services, protecting privacy and security, and sensitivity to customer needs” by Investor’s Business Daily.

The odious attempt to precipitate a run on Fidelity Bank is financial sleight of hand of the worst sort. While the bank is not at any risk considering its very robust fundamentals, the banking industry may be worse for such an invidious campaign if unchecked.

Those who are trying to instigate instability in the country’s financial ecosystem should desist. Competition must not be a sleight of the hand battle.

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PRESS RELEASE

South-West Investment Summit 2024: Akmodel Group MD Dr. Odegade Honored Alongside Dele Momodu, Olufemi Soneye, Dr. Ruben Abati, Olubunmi Tunji-Ojo, Taiwo Afolabi, Princess Alli, and More (Photos)

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South-West Investment Summit 2024: Akmodel Group MD Dr. Odegade Honored Alongside Dele Momodu, Olufemi Soneye, Dr. Ruben Abati, Olubunmi Tunji-Ojo, Taiwo Afolabi, Princess Alli, and More (Photos)

Akmodel Group Managing Director, Builder (Dr.) Abdulhakeem Odegade joined other awardees at the recently held 4th edition of the South West Investment Summit and Advancement Award.

The event with theme: “Unlocking Investment Opportunities in the South-West” took place at the Lagos Oriental Hotel, Victoria Island.

Dr. Odegade was honoured with *Outstanding Personality Of The Year Award* for his magnanimity, dedication and selfless service to humanity especially to the advancement of the South-West region.

South-West Investment Summit 2024: Akmodel Group MD Dr. Odegade Honored Alongside Dele Momodu, Olufemi Soneye, Dr. Ruben Abati, Olubunmi Tunji-Ojo, Taiwo Afolabi, Princess Alli, and More (Photos)

He attended the event with Paul Obazele (Akmodel Brand Ambassador), Favour Benson (Media Consultant), Maureen Obire, Kenneth Udezueh, Pelumi from Akmodel Marketing Department etc.

The Royal Father of the Day, His Imperial Majesty, Oba Babatunde Enitan Ogunwusi Ojaja II, was represented by HRH Oba Asoya.

There were 42 distinguished awardees amongst which were: Dr. Odegade (MD/CEO Akmodel Group), Mr. Reuben Abati (AOP – Arise TV), Mrs. Olubukola M. Abitoye (CEO – Digital Space Capital), Prof. Ojo Emmanuel Ademola (Chairman, Governing Council – Institute of Enterprise MGT and Analytics), Iyaniwura Oodua Agbaiye, Princess Ganiyat Morayo Alli, Aare Dr. Dele Momodu (Chairman, Ovation Media Group), Hon. Titilope Gbadamosi (SA to President for Youth Initiative, Monitoring and Delivery), Mr. Ayo Wisdom Olawande (Hon. Min. of State for Youth), Mr. Olufemi Oladapo Soneye (Chief Corporate Communications Officer – NNPCL) to mention a few.

Read Also: Zenith Bank confirms Sirika’s daughter owns a company linked to N1.4 billion Aviation contract

There were also Musical, Dance Performance and Comedy interludes for guests entertainment at the event.

Not forgetting a captivating performance by Africa’s youngest chief, Chief Olamilekan Adebayo (Adigun Olowe Yoruba), who impressed attendees with his skillful recitation and translation of Yoruba proverbs.

South-West Investment Summit 2024: Akmodel Group MD Dr. Odegade Honored Alongside Dele Momodu, Olufemi Soneye, Dr. Ruben Abati, Olubunmi Tunji-Ojo, Taiwo Afolabi, Princess Alli, and More (Photos)

The summit and awards ceremony served as a platform to highlight and celebrate the achievements and contributions of individuals and organizations dedicated to the growth and development of the South-West region.

Recall that Akmodel Group consist of Akmodel Homes and Properties, Akmodel Builders Construction, Akmodel Farm investment.

They also have landed properties in Lagos, Uyo, Ibadan, Awka, Abeokuta, Ilorin, Enugu, Ghana etc, Cote d’Ivoire and United kingdom loading.

Now introducing *Akmodel Auto-Care and Akmodel Oil and Gas*.

SolinMedia

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Akmodel Group MD, Dr. Abdulhakeem Odegade, Shares Heartfelt Democracy Day Message with Nigerians

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Akmodel Group MD, Dr. Abdulhakeem Odegade, Shares Heartfelt Democracy Day Message with Nigerians

In his words, he said “Democracy is not about politics; Democracy literally means the power of the people.The strength of a nation lies in the minds of its people.”

Dr. Odegade further said that “Where you see wrong or disparity or foul play, stand up against it because *this is your nation. This is your Democracy *Make it. Ensure it. Pass it on* Respect the importance of Democracy, it is all about people.”

He advised us all to keep praying for Nigeria because this our home.

Happy Democracy Day, he concluded.

Bldr. (Dr.) Odegade will also be attending South West Advancement Awards, holding today in Oriental Hotel, Victoria Island Lagos.

Read Also: Fidelity Bank leads trading as equities gain N324 billion

Because of his magnanimity and dedication to the Real Estate sector, he has been shortlisted as a recipient of one of the awards.

He will be storming the event with Paul Obazele (Akmodel Brand Ambassador), Favour Benson (Media Consultant), members of their Marketing Staff etc.

Recall that Akmodel Group consist of Akmodel Homes and Properties, Akmodel Builders Construction, Akmodel Farm investment.

They also have landed properties in Lagos, Uyo, Ibadan, Awka, Abeokuta, Ilorin, Enugu, Ghana etc, Cote d’Ivoire and United kingdom loading.

Now introducing *Akmodel Auto-Care and Akmodel Oil and Gas*.

SolinMedia

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