Guardian

FOLLOWING its return to profitability last year, Union Bank of Nigeria Plc at the weekend expressed commitment to consolidate the growth, even as the bank’s capital adequacy ratio currently stood at 20 per cent, above 15 per cent regulatory requirement.

Addressing stockbrokers during the bank’s ‘Facts Behind the Figures’ in Lagos on Friday, the Group Managing Director of the bank, Mr. Emeka Emuwa, explained that the bank’s capital adequacy ratio, which currently stood at 20 per cent, against 19 per cent recorded in 2011 and liquidity ratio, which has also exceeded regulatory requirement, has repositioned the bank to sustainable profitability.

The Union Bank boss pointed out that a network of 337 branches spread across Nigeria has provided a competitive advantage to the bank, adding that it would leverage on its past heritage and modernising its brand and operational base in order to extending its service offerings to next generation of customers and seeking a strong position in emerging segments.

Emuwa, while fielding questions to stockbrokers, assured them that Union Global Partner Limited, the bank’s core investors, which, according to him is having 65 per cent stake in the bank, would not exit the bank in the nearest future.

“The core investors are long-term investors that brought a certain value to the bank and the notion of exit is not what we are looking at but the capital which they brought in which can not exit.”

He added that with the current repositioning plan in place by the board, as well as the injection of $500 million in September 2012, by its core investors, the bank is poised to deliver quality services to customers and enhance shareholders value on investment.

The GMD who said the group growth trajectory experienced a significant dip in the 2009 financial year, just as deposit was going down for the bank until 2011, explained that, “with a seven pillar transformation programme in place in the year, leveraging on its business model, people and culture and its risk management amongst others, the bank is set to take its rightful place in the industry.

“As part of the on-going enterprise transformation programme, there is a new operating model for our branches. The new model is designed to allow branches to give dedicated focus to marketing and relationship management.

“On the operational side, we will ensure the integrity of the bank’s accounting and financial reporting systems and that appropriate controls are in place, in particular, systems for monitoring risk, financial probity, and compliance with the law.

“The corporate governance structure will be built around enhancing transparency and accountability. Steps had also been taken to increase the ratio of our market-facing staff in the new system. The organisational structure of the bank will be changed to reflect the new expectations. Our branches will be upgraded to be customer friendly in physical ambiance as well as working tools. Technology will be very key in this regards”, he added.

Union Bank’s balance sheet for the 2011 financial year through December, showed positive net assets of N197 billion compared with negative net assets of N115.7 billion in the previous year.

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, commended the management of the bank on its on-going compliance with the post-listing requirements, as well as returning the bank to profitability and, while urging banks to partner with the government in unlocking its growth potential to accelerate the country’s socio-economic development.