Nigeria’s second oldest bank, Union Bank of Nigeria has reported a pre-tax profit of N71.8 billion in the 2023 full year, marking a 138% growth from the N30.2 billion posted in FY 2022.
This is as the bank continues its restructuring plans following the review of its Titan Trust Bank takeover by the central bank under Yemi Cardoso.
The bank generated gross earnings of N393.6 billion during the period, marking an 89% growth from the N208 billion posted in FY 2022.
During the full year, the bank generated a net interest income of N90.4 billion, marking a 53% improvement from the N59.1 billion generated in 2022.
However, there was a jump in net impairment charges, from N4.5 billion as of FY 2022 to N58.5 billion as of FY 2023, thus leading to 42% decline in the bank’s net interest income after impairment losses.
According to the financial statements, the group posted a net FX revaluation loss of N226 billion, which could exempt it from the 70% windfall tax on realized net FX gains.
Despite the net FX loss, the bank recorded an N118.3 billion net trading income during the year, a 402% increase from the N23.6 billion trading gain recorded in FY 2022.
Union Bank also recorded a net income of N215.9 billion from its financial instruments, marking a 3242% increase from the N6.46 billion recorded in 2022.