Earnings ReportFeatured

Union Bank Excites Investors with another 25k Cash Dividend; Maintains Dividend Status

Coy: UNION BANK PLC. (UBN)
Rating: Hold
Current Market Price: N5.05

LOAN to DEBT Ratio:61.29 %
Year High: N6.10
Year Low: N5.05
Fair Value: N5.00
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financials

  • Both Gross Earnings and Profit reported for the full year business session are marginally below what was achieved in the corresponding year of 2019
  • Equity Ratio is good at 12.06%, although it dropped from the last year’s estimate
  • Return on Equity is 7.06% dropping from the 7.88% achieved in 2019
  • Loan to Deposit ratio is upto standard at 61.29%
  • Dividend paid is 50k per unit share, this same as was paid in the corresponding year. Please understand that, this makes it the second time the bank is paying dividend in a long time
  • The closure date for the said dividend is 1st April, 2021, thus, the qualification date is 31st March, 2021
  • The payment date had been scheduled for 13th April, 2021
UNION BANK
Bourse Nigerian Stock Exchange
Code Name UBN
Sector FINANCIAL SERVICES
Market Classification MAIN BOARD
Nature of Business Commercial Banking
Date of Incorporation May 30th 1969
Date Listed  
End of Accounting Year 31st December
Website www.unionbankng.com
Registrar GTL-Registrars
Auditor KPMG Professional Services
Share Price@Relsd (N)  5.05
Earnings per Share 0.64
Intrinsic Value(N) 5.00
Share Outstanding 29,120,752,788
Market Capitalisation   147,059,801,579
UNION BANK- FULL YEAR 2020 NUMBERS
Statement of Comprehensive Income
  2020(Mill) 2019(Mill) %CHG
GROSS EARNINGS                160,292            166,545 3.75
INTEREST INCOME                113,157            117,071 3.34
INTEREST EXPENSES                  55,755               64,551 13.63
NET INTEREST INCOME                  57,402               52,520 9.30
OPEX                  70,758               63,289 11.80
DEPRECIATION                     5,816                 5,801 0.26
AMORTISATION                     1,893                 1,927 1.76
PBT                  25,974               24,844 4.55
TAX                        845                     478 76.78
PAT                  18,672               19,875 6.05
TOTAL COMP INCOME                  19,040               27,571 30.94
Statement of Financial Position
Total Assets            2,191,026         1,872,231 17.03
Total Liabilities            1,926,708         1,619,889 18.94
Net Assets                264,318            252,342 4.75
Property Plan & Equipment                  57,364               57,968 1.04
Retained Earnings                  23,399               21,437 9.15
Total Deposits            1,130,305            886,263 27.54
Total Loans and Advances                692,803            550,613 25.82
Financial Strength/Solvency Ratio
TICKERS 2020 2019 %CHG
Debt Ratio 87.94% 86.52% 1.63
Total Debt to Equity Ratio (MRQ)                                        7.29                                    6.42 13.55
Equity Ratio 12.06% 13.48% 10.49
Beta Value 0.83  1.11 25.23
PROFITABILITY RATIOS
TICKERS 2020 2019 %CHG
PRE-TAX MARGIN 16.20% 14.92% 8.63
EFFECTIVE TAX RATE 3.25% 1.92% 69.09
IE TO GE 34.78% 38.76% 10.26
ROAE 7.06% 7.88% 10.31
ROAA 0.85% 1.06% 19.72
EFFICIENCY RATIOS
TICKERS 2020 2019  
OPEX TO GE 44.14% 38.00% 16.16
GE TO TA 7.32% 8.90% 17.76
LDR 61.29% 62.13% 1.34
Capex/Share                                        0.24                                    0.20 23.74
UNION BANK
Investment/Valuation Ratios
Tickers 2020 2019 %Chg
EPS 0.64 0.68 6.05
TCIP/SHARE 0.65 0.95 30.94
P/E-Ratio 7.88 10.04 21.53
Earnings Yield 12.70% 9.96% 27.43
BV/Share 9.08 8.67 4.75
PBV 0.56 0.79 29.62
LDR 61.29% 62.13% 1.34
DIVIDEND INFORMATION
Tickers 2020 2019 %Chg
Latest Final Dividend                                        0.25                                    0.25 0.00
Final Dividend Pay-Out Ratio 38.99% 36.63% 6.44
Final Dividend Yield 4.95% 3.65% 35.64

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Earnings ReportFeatured

Union Bank Excites Investors with another 25k Cash Dividend; Maintains Dividend Status

Coy: UNION BANK PLC. (UBN)
Rating: Hold
Current Market Price: N5.05

LOAN to DEBT Ratio:61.29 %
Year High: N6.10
Year Low: N5.05
Fair Value: N5.00
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financials

  • Both Gross Earnings and Profit reported for the full year business session are marginally below what was achieved in the corresponding year of 2019
  • Equity Ratio is good at 12.06%, although it dropped from the last year’s estimate
  • Return on Equity is 7.06% dropping from the 7.88% achieved in 2019
  • Loan to Deposit ratio is upto standard at 61.29%
  • Dividend paid is 50k per unit share, this same as was paid in the corresponding year. Please understand that, this makes it the second time the bank is paying dividend in a long time
  • The closure date for the said dividend is 1st April, 2021, thus, the qualification date is 31st March, 2021
  • The payment date had been scheduled for 13th April, 2021
UNION BANK
Bourse Nigerian Stock Exchange
Code Name UBN
Sector FINANCIAL SERVICES
Market Classification MAIN BOARD
Nature of Business Commercial Banking
Date of Incorporation May 30th 1969
Date Listed  
End of Accounting Year 31st December
Website www.unionbankng.com
Registrar GTL-Registrars
Auditor KPMG Professional Services
Share Price@Relsd (N)  5.05
Earnings per Share 0.64
Intrinsic Value(N) 5.00
Share Outstanding 29,120,752,788
Market Capitalisation   147,059,801,579
UNION BANK- FULL YEAR 2020 NUMBERS
Statement of Comprehensive Income
  2020(Mill) 2019(Mill) %CHG
GROSS EARNINGS                160,292            166,545 3.75
INTEREST INCOME                113,157            117,071 3.34
INTEREST EXPENSES                  55,755               64,551 13.63
NET INTEREST INCOME                  57,402               52,520 9.30
OPEX                  70,758               63,289 11.80
DEPRECIATION                     5,816                 5,801 0.26
AMORTISATION                     1,893                 1,927 1.76
PBT                  25,974               24,844 4.55
TAX                        845                     478 76.78
PAT                  18,672               19,875 6.05
TOTAL COMP INCOME                  19,040               27,571 30.94
Statement of Financial Position
Total Assets            2,191,026         1,872,231 17.03
Total Liabilities            1,926,708         1,619,889 18.94
Net Assets                264,318            252,342 4.75
Property Plan & Equipment                  57,364               57,968 1.04
Retained Earnings                  23,399               21,437 9.15
Total Deposits            1,130,305            886,263 27.54
Total Loans and Advances                692,803            550,613 25.82
Financial Strength/Solvency Ratio
TICKERS 2020 2019 %CHG
Debt Ratio 87.94% 86.52% 1.63
Total Debt to Equity Ratio (MRQ)                                        7.29                                    6.42 13.55
Equity Ratio 12.06% 13.48% 10.49
Beta Value 0.83  1.11 25.23
PROFITABILITY RATIOS
TICKERS 2020 2019 %CHG
PRE-TAX MARGIN 16.20% 14.92% 8.63
EFFECTIVE TAX RATE 3.25% 1.92% 69.09
IE TO GE 34.78% 38.76% 10.26
ROAE 7.06% 7.88% 10.31
ROAA 0.85% 1.06% 19.72
EFFICIENCY RATIOS
TICKERS 2020 2019  
OPEX TO GE 44.14% 38.00% 16.16
GE TO TA 7.32% 8.90% 17.76
LDR 61.29% 62.13% 1.34
Capex/Share                                        0.24                                    0.20 23.74
UNION BANK
Investment/Valuation Ratios
Tickers 2020 2019 %Chg
EPS 0.64 0.68 6.05
TCIP/SHARE 0.65 0.95 30.94
P/E-Ratio 7.88 10.04 21.53
Earnings Yield 12.70% 9.96% 27.43
BV/Share 9.08 8.67 4.75
PBV 0.56 0.79 29.62
LDR 61.29% 62.13% 1.34
DIVIDEND INFORMATION
Tickers 2020 2019 %Chg
Latest Final Dividend                                        0.25                                    0.25 0.00
Final Dividend Pay-Out Ratio 38.99% 36.63% 6.44
Final Dividend Yield 4.95% 3.65% 35.64

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