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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