Union Bank seeks N50bn in tier-1 capital through a rights issue in Q3

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Union Bank of Nigeria Plc has reaffirmed its commitment to meeting its key 2017 business objectives, including plans to raise up to N50bn in tier-1 capital through a rights issue during the third quarter.

The bank confirmed this in a note attached to its half-year financial result filed with the Nigerian Stock Exchange.

The capital increase, according to the lender, supports its strategy to accelerate business growth and position itself as a leading commercial bank in Nigeria. The rights issue is to be launched in the third quarter, subject to all regulatory approvals being secured.

The group’s gross earnings went up by 23 per cent to N73.7bn, compared to N60.1bn reported in the first half of 2016.

The bank’s profit before tax rose by six per cent to N9.5bn from N8.9bn posted in 2016 H1.

Interest income appreciated by 31 per cent to N58.3bn from N44.3bn posted in 2016 H1.

This, it noted, was driven largely by naira devaluation, which informed foreign currency loan book growth.

Commenting on the bank’s half-year results, its Chief Executive Officer, Mr. Emeka Emuwa, said, “As our centenary celebrations continue and with the launch of our N50bn rights issue in the second half of the year, 2017 will remain a very busy year for the bank.

“With our clear focus on enhancing the operational efficiency of the franchise, gross earnings grew by 23 per cent in the first half of the year to N73.7bn, from N60.1bn in H1 2016. In a challenged economy, the group delivered profit before tax of N9.5bn, a six per cent growth over the corresponding period in 2016.”

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