Union Bank of Nigeria (UBN) shareholders on Wednesday lauded the management for returning the company to profitability.
The shareholders stated this at the bank’s 48th Annual General Meeting (AGM) in Lagos.
They also applauded the bank’s improved performance and corporate governance policy and urged the management to consolidate the performance.
Mr Moses Igbrude, the General Secretary, Independent Shareholders Association of Nigeria (ISAN), said that the bank had made remarkable efforts to return to profitability.
Igbrude said that the bank needed to be more innovative, especially in the areas of technology advancement, to enable them to woo back customers that exited the bank in the past.
“They have done well. The management has been able to reposition the bank to profitability. The management needs to lay a solid foundation going forward.
“They should deploy new technology, develop their brand and make their branches more attractive,” he said.
Mr Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association (NSSA), called on the bank to improve on its digital banking segment to increase visibility.
Adesiyan said that this would attract more customers into the bank which would ultimately boost their deposit.
Mr Cyril Odu, the chairman of the bank, while reviewing the bank’s performance, said that it had grown its new bank customers strategy by nearly 70 per cent increase in 2016.
Odu said that the bank would focus more on innovation to drive its business operations, adding that it identified growth opportunities in the economy and leveraging such to develop stronger brands.
Mr Emeka Enuma, the bank’s Group Managing Director, said the bank had commenced necessary steps to a successful rights issue of N50 billion expected to be launched in the second quarter of 2017.
“In 2016, we focused on executing our priorities across all our business segments, especially in the retail space, with an aggressive strategy to increase adoption of our alternate channels.
Our success in this area, along with improved core interest earnings, contributed to pre-tax profit growth of six per cent compared with 2015.
Our research-led, customer-centred product development strategy, coupled with an upskilled sales force and targeted marketing campaigns boosted our customer deposit base by 15 per cent compared to 2015, and led to a 73 per cent increase in new-to-bank customers,” he said.
He said that the bank, in the current year, would focus on its priorities which included raising Tier 1 capital to execute growth agenda across its retail, commercial and corporate businesses, particularly transaction banking and value chain.
Enuma said the bank would maintain its focus on growing its retail business, relying on its tailored products alternative banking and sales channels.
The News Agency of Nigeria (NAN) reports that the bank’s revenue grew by eight per cent to N126.6 billion for the financial year ended Dec. 31, 2016, from N117.2 billion posted in 2015.
Profit-before-tax grew by six per cent to N15.7 billion against N14.9 billion posted in the comparative period of 2015. (NAN)