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Union Bank reports 461% growth in PBT in Q3, 2023

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Union Bank Plc has announced a significant financial performance for the third quarter ending September 30, 2023. The bank reported a profit before tax (PBT) of N102.3 billion, reflecting an impressive growth of 461.1 percent compared to the PBT of N18.2 billion in the corresponding period of 2022. This notable achievement is attributed to a surge in gross earnings, which reached N309.1 billion, marking a 120 percent increase from N140.6 billion in 2022.

The financial highlights further showed a substantial rise in non-interest income, soaring to N144 billion from N28.3 billion in the same period of 2022, denoting an exceptional growth of 409 percent. Net operating income after impairments also experienced a remarkable upswing by 121 percent, reaching ₦168.7 billion, compared to N76.3 billion in 2022.

Operating expenses increased by 14.2 percent to ₦66.4 billion, attributable to factors such as the inflationary environment, elevated power costs, and non-discretionary regulatory expenses. Despite this, the bank demonstrated a robust performance with gross loans escalating by 38.1 percent to ₦1.38 trillion, and deposits witnessing a substantial 30 percent increase, reaching ₦1.93 trillion, a testament to the unwavering confidence of customers in the brand.

Commenting on the results, Mudassir Amray, Managing Director and CEO, expressed satisfaction with the strong financial results, citing a record-breaking revenue increase and impressive profitability figures. He attributed these achievements to the bank’s strategic positioning of the balance sheet, effective liability generation, and the creation of responsible risk assets.

Amray emphasised that the growth in revenue and profitability exceeded expectations, underscoring the success of the wholesale banking strategy. Non-interest income saw a phenomenal surge of 409 percent, reaching ₦144 billion. The CEO highlighted the bank’s customer-centric approach, robust product portfolio, and innovative channels as key contributors to the 30 percent growth in customer deposits.

The bank remains well-capitalized with a capital adequacy ratio (CAR) of 15.4 percent, and non-performing loans remain below the regulatory limit at 3.7 percent. Amray expressed optimism about the future, citing strong business fundamentals, a customer-centric approach, and a dedicated team that positions the bank to seize opportunities in the evolving market.

In addressing the merger of Union Bank of Nigeria and Titan Trust Bank, Amray indicated that the process is nearing completion, with all regulatory requirements being fulfilled. He believes that the merger will further strengthen the bank’s position and financial performance.

He said: “We remain optimistic about the future and are confident in our ability to sustain momentum. Our strong business fundamentals, customer-centric approach, and dedicated team puts us in a solid position to seize the opportunities in this rapidly evolving market. On the merger of Union Bank of Nigeria and Titan Trust Bank, we are fast approaching the finalisation of the process and are fulfilling all the regulatory requirements. We believe that the merger will strengthen our position and financial performance.”

“Net operating income after impairments increased by 121 percent to ₦ 168.7 billion from ₦76.3 billion in September 2022 on the back of increased net revenue across our key business segments – corporate, retail and SME. Although our operating expenses increased by 14 percent to ₦66.4 billion compared to ₦58.1 billion in September 2023, we significantly improved our Cost to Income Ratio to 39.3 percent from 76.1 percent recorded in September 2022. This improvement was due to our effective management of costs, implementation of efficiency measures, optimisation opportunities, and strong revenue growth. The high inflationary environment, non-discretionary regulatory costs, and power costs mainly caused the increase in operating expenses.

“The Bank maintained a solid balance sheet position as Gross Loans grew strongly by 38.1 percent to ₦1.4 trillion compared to ₦.1.0 trillion in December 2022 and Customer deposits by 30 percent on the back of increased New-to-Bank customers, sales promotion, and product patronage. Given the unwavering confidence our customers have bestowed on us, we are confident of finishing the year strong. The Bank will continue to invest in technology to improve customer interactions across our channels and drive efficiency.”

//Ends

Notes to Editors:
About Union Bank of Nigeria, PLC.
Union Bank was established in 1917 and is one of Nigeria’s longest-standing and most respected financial institutions. We offer a portfolio of banking services to individual, SME, public, commercial, and corporate clients, and our vision is to be Nigeria’s most reliable and trusted partner.

Our offerings include savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. These services are provided through our digital channels, including online banking, mobile banking, debit cards,point-of-sale terminals, and an extensive network of over 281 sales and service centres and 823 automated teller machines spread across Nigeria.

Following receipt of all regulatory approvals, Titan Trust Bank (TTB) acquired all the issued shares of Union Bank of Nigeria. TTB is majority owned by TGI Group, a Nigerian conglomerate.

Union Bank employs all its resources to achieve its mission to make lives better by delivering the simplest, smartest solutions and guaranteeing the best experience across its various touch points, with a strategy focused on the right talent, optimised processes and platforms, robust technology, and a re-energised brand.

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Appreciating Betara’s Rare Leadership Disposition*By Ali Adamu

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The legislative arm of government is entrenchedwith the powers to make laws for good governance. Effective representation, however, goes beyond lawmaking. It demands a deep understanding of the people’s needs and a willingness to address them. Rt. Hon. Muktar Aliyu Betara, OON, exemplifies this commitment, leveraging his parliamentary expertise to drive transformative change.To Rt. Hon. Betara, parliamentary practices are about service to humanity. He believes that laws are made for people and therefore strives to ensure his diligent efforts cover tangible, measurable interventions that better the well-being of his constituents and society. Born on November 22, 1966, in Zarawuyaku Ward of Biu town, Biu Local Government Council, Rt. Hon. Aliyu is a five-time lawmaker and accountant. He began his education at Biu Central Primary School in 1973, completing his First School Leaving Certificate in 1978. He then attended Biu Central Junior Day Secondary School and later Government Technical Secondary School, Benisheik. His exceptional leadership qualities and obedient disposition earned him respect and admiration, leading to his appointment as head prefect.After obtaining his West African School Certificate in 1983, Rt. Hon. Muktar proceeded to Ramat Polytechnic, Maiduguri, where he earned an Ordinary National Diploma in Business Administration in 1986. He later obtained a Higher National Diploma in Accountancy and Business Administration in 1992. As a pragmatic and foresighted statesman, Rt. Hon. Betara began his career in public service as an accountant with the Directorate for Food, Roads and Rural Infrastructure (DFFRI) from 1986 to 1990, and later with Nigerian Telecommunications Limited (NITEL) from 1993 until his voluntary retirement in 2006.Initially, Rt. Hon. Betara didn’t plan to venture into politics. Instead, he considered starting a business with his savings. However, due to pressure and clamour from his people, he decided to represent them and become their voice. This marked the beginning of his political journey, which led him to become a member of the House of Representatives in 2007.In 2007, he succumbed to their pressure and joined the All Nigerian Peoples Party (ANPP) and was elected to represent Biu/Bayo/Shani/and Kwaya Kursar Federal Constituency from where he has consistently and continuously represented them through the 6th, 7th, 8th, 9th and now 10th Assembly, with the current and immediate past in the All Progressives Congress (APC).A core nationalist, Rt. Hon. Muktar Aliyu Betara, OON, consistent presentation and contributions both nationally and transnationally include interventions in human and natural disasters. For instance, he was among the first to copiously donate to the victims of the Borno flood disaster.This benevolence stands him out not only as a bridge builder and crisis interventionist but also as a humane philanthropist who can sacrificially use his personal resources to not only meet the yearnings of his constituents but also be in synch and solidarity with those in dire need and affliction.Aside this resourcefulness and the saying goes that, ‘charity begins at home’, he has among other things embarked upon the following hallmark projects; supply of medical equipments to Sir Mohammadu Sanusi General Hospital, Tokarawa and Yankaba Primary Health, provision of empowerment materials to youths and women of his constituency, provisions of fertilizer to farmers, provisions of grants to youths and women farmers, installation of solar light in communities in Biu.A strong and formidable force in national politics, his successes, usefulness, and stalling achievements far outstretch his immediate constituency but have affected national life and policies.Rt. Hon. Betara is instrumental in the effective implementation of a revised budget cycle from June to June to a more effective and efficient successful current budgeting system of January to January, the compliance of which has seen a zero failure rate in appropriation and enactment.His involvement in national security based on his critical decision skills is next to none as it has seen to several mending of fences and brokered people amongst warring communities and parties. He was singularly responsible for the upscaling of defence equipment and empowerment and sustenance of military operations against the rising insurgency of book haram in northern Nigeria.Amongst his other notable achievements are; the construction of over twenty health centres with the provision of ten ambulances, the construction of a mini stadium in Biu to facilitate Sporting and Sports related activities and peaceful coexistence, and the installation of five hundred solar-powered street lights, amongst others.Indeed, he gainfully used his positions as Chairman Subcommittee on NDIC, Banking and Currency, Member House Committee on Interior, and Chairman House Subcommittee on Customs, Immigration and Prisons.In the seventh Assembly (2012 -2015), he was the Chairman, House Committee on Army and 2015 – 2019 he was Chairman House Committee on Defence. In his last assignment as the Chairman House Committee on Appropriation, Rt. Hon. Betara certainly has impacted Nigeria’s democracy and proved unequal and dexterous qualities.Rt. Hon. Muktar Aliyu Betara’s leadership as Chairman of the House Committee on FCT has been instrumental in enhancing infrastructure in Abuja. Through effective legislation, he has helped improve the budgetary allocation of capital, leading to significant developments. His commitment to the welfare and security of residents and natives is evident in his constant engagement with the minister, ensuring their needs are addressed.As Chairman, Betara has played a crucial role in approving supplementary budgets for the Federal Capital Territory Administration (FCTA), demonstrating his dedication to the city’s growth. Recently, he oversaw the adoption of an N288 billion supplementary budget for the FCTA, showcasing his ability to drive progress.Little wonder then that in 2020, he was awarded the Democracy Hero’s Award for Best Performing Rep Member of the Year, and also the Award of Excellence by the North Eastern Zone of the Nigerian Union of Journalists in 2013. His bills on Defense Research and Development Bureau 2018, and the Bill for an Act to Repeal the Produce Enforcement of Export Standard remain one model Bills in the annals of modern-day Legislation, coupled with his wealth and responsibility of knowledge and experience, remains one of the reasons he commands so much respect amongst his colleagues.In conclusion, Rt. Hon. Muktar Aliyu Betara, OON, embodies the essence of selfless leadership, compassion, and dedication to the betterment of humanity. Through his illustrious career, he has etched an indelible mark on Nigeria’s legislative landscape, leaving a legacy of transformative change that will endure for generations. As a champion of the people, a defender of the vulnerable, and a steadfast advocate for progress, Rt. Hon. Betara’s name has become synonymous with excellence, integrity, and unwavering commitment to the noble ideals of public service. His story serves as a beacon of hope, inspiring future leaders to emulate his exemplary qualities and pursue a life of purpose, driven by the pursuit of the greater good.Adamu, a public affairs analyst, wrote this piece from Maiduguri.

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Lagos Lawmakers Seek Collaboration To End Food Insecurity

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– as council chairman wants subsidy on agric products

Lawmakers of the Lagos State House of Assembly on Friday held simultaneous stakeholders’ meetings with their constituents with renewed commitments to boost food security and sufficiency in the state.They also called for collaboration by the stakeholders to end food insecurity.Speaking in his Agege Constituency 1, the Speaker of the House, Rt. Hon. Mudashiru Obasa, identified food insecurity as a multi-faceted challenge requiring the efforts of the government and the people to resolve.This year’s stakeholders’ meeting is the ninth in the series and has the theme: ‘Ensuring Food Security for Sustainable Future: Youth Participation and Home-Grown Farming’.Dr. Obasa said the Lagos Assembly was committed to ensuring food security in line with the United Nation’s sustainabledevelopment goals of eradication of poverty.”We at the Lagos State House of Assembly are committed to making Lagos an producing state and not just a consuming state in the agriculture value chain to tackle the present-day reality of food insufficiency.”Our commitment is exemplified through transformational laws and policy supervision in the agricultural sector,” he said noting that with the collaboration of the Assembly, the government of the state has made giant strides in the agriculture sector.He listed some of the agricultural initiatives to include the setting up of the 34-hectare Ikorodu FishFarm Estate which has the capacity to produce andprocess 10,000 tons of fish per year partneringwith 400 fish farmers in the StateHe mentioned the AGRIC-YESprogramme and “the Oke-Aro and Gberigbe Pig Farm Estates that currently partners with 1,200 farmers and have the capacity of housing and processing 88,000 mature pigs per annum.”It is important to reiterate that, on our part as lawmakers, we have also created an enablingenvironment for farming activities to thrive in the state,particularly through the passage of anti-open grazing of livestock Law in September, 2021.”He said to achieve food sufficiency, farming capacity needs to be widened while residents should consider animal husbandry.In his opening remarks, the chairman of Agege Local Government Area, Ganiyu Egunjobi, identified insecurity and non-availability of low interest loan for the youth population as responsible for the food crisis.”This meeting cannot come at a better time. The problem responsible for the food shortage are many among which are insecurity that has prevented many farmers from accessing their farms. Farming in Nigeria is no longer attractive to the teeming youths.”I want to suggest to the government at all levels to subsidise farming and also give loans at very low interest to farmers. The government should also improve on existing physical infrastructures in farming communities that would discourage urban migration and encourage youths to embrace farming. Farming and youth unemployment are recurring issues which require multidimensional interventions to tackle,” he said.The keynote speaker, Dr. Akinyemi Olusegun of the Lagos State Ministry of Agriculture, urged the youths and residents in the state to engage in urban farming.”In Lagos, we are more than 22 million and as a result we have a huge need for food. People want to eat and engage in food business,” he said urging youths to focus on home-grown farming.Eromosele Ebhomele Chief Press Secretary to the Speaker of the Lagos State House of Assembly

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Jubilation in Sokoto as Bandits’ Nemesis Matawalle Arrives to Encourage Troops on War

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Sokoto residents erupted in jubilation on Wednesday as Bello Matawalle, the Minister of State for Defence, arrived in the state to rally troops in the fight against banditry.Matawalle’s visit is part of the federal government’s efforts to restore peace and security in the North West Zone, which has been plagued by banditry.”I’m thrilled to see Matawalle here,” said Usman Usman, a local resident. “He’s a beacon of hope for us, and his presence gives us confidence that the government is committed to ending this menace.”Matawalle’s reputation as a bandits’ nemesis has preceded him, with many residents praising his efforts to tackle insecurity in the region.”Matawalle is a tested, trusted, and reliable leader,” said Umar Ibrahim, a Sokoto resident. “We believe in him, and we know he’ll do everything possible to protect us.”Notably, Matawalle’s last visit to the northwest led to the death of notorious bandit kingpin Halilu Sububu. This significant breakthrough is a testament to the Minister’s commitment to eradicating banditry.According to Shehu Mohammed, “President Tinubu and Matawalle’s collaborative efforts have yielded notable successes.”With Matawalle here, we feel safer, and we know that help is on the way.” Meanwhile in a statement on Tuesday by Henshaw Ogubike, director of information and public relations at the ministry, Matawalle said his arrival in the state spells doom for bandits and their supporters.“As directed by Mr. President, I am back to Sokoto state to assure the people of this great region of our commitment to achieving all necessary yardsticks in the fight against insecurity,” he said.“We will never leave you alone. I assure you, we will win this war against bandits and those supporting them to unleash terror against our people.“We must collaborate with all stakeholders in this region to achieve our target. The federal government will continue to boost the morale of our soldiers and security agencies in this fight.”The minister expressed his confidence in the ongoing military operation in the northwest zone.“I am optimistic that our gallant troops will continue to record successes through Operation Fansan Yamma as we intensify our fight against these criminals,” he said.Matawalle vowed to “relentlessly” fight bandits and their supporters, adding that the Tinubu administration will continue to prioritise the protection of lives and property.

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