UNION BANK PLC: NOT QUITE EUREKA YET.

Union Bank PLC is perhaps close to the winning formula that will pave the way back to big time but it is not quite
According to the figures for the nine months ended September, the magic formula may not surface this year unless Union Bank keeps down growth in interest expense and revives fees and commission while continue to watch operations costs and personnel expense like a hawk.
By September, Union Banks gross earnings had grown by only 6.4% to N84719m in spite of 182.9% rise in net trading income to N3597m; 43.8% increase in other operating income to N6307m from N4386m and 19.3% increase in interest income to N66636m from N55858m.
This was because net fees and commission dropped by 5.59% to N6918m; cash recovered decreased by 67%; and gain from sale of subsidiaries plummeted by 115.3% into N511m loss from N3318m gain previously.
Amidst this drag down of earnings growth. Interest expense jumped by 50.2% from N17733m to N26634m; thus depriving Union Bank the full benefits of driving personnel and other operating costs down by 3.28% and 2.58% respectively.
This was quite apart from 20.4% drop in loan loss provision to N4454m from N5594m.
In the end, Union Bank settled for only 5.28% rise in profit before tax to N9380m compared to N8910m by September 2014.
DECODED:
* There is still work to be done if Union Bank is to end 2015 with higher gain on each N100 income. For now, it is slightly down.
* Of course back to big league will only be possible with higher efficiency that engenders all round robust income growth alongside all round cost management.

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