Wole Olajide
Investors as at today have made about 21.57% returns on their investment as the share price of Union Bank of Nigeria Plc appreciated from N5.1 to N6.2 in three months.
On the released date of its Q3’18 result on October 30, 2018, the share price of Union Bank was N5.10. At the end of trade on the floor of the Nigerian Stock Exchange on Monday, January 28 2018, the share price have grown to N6.2
The third quarter result of the group for the period ended September 30, 2018, revealed that the bank grew 11.58% in Gross Earnings closing at N122.2 billion against the previous close of N109.5 billion in Q3’17. Gross earnings for FY’18 is projected to grow by 7.06 % on the premise of consistent growth of 10.57% and 26.42% it recorded in FY’16 and FY’17 respectively.
Interest Income in Q3’18 grew by 3.4% to close at N91.48 billion from the previous close of N88.47 billion in Q3’17. Interest expense was N42.07 billion, bringing the Net Interest Income to close at N49.41 billion, which is a growth of 5.55% year on year.
The Profit before Tax (PBT) of the group grew by 14.3% to close at N14.857 billion from the previous PBT of N12.998 billion in Q3’17. Income expense was N193 million bringing the Profit after Tax (PAT) to close at N14.66 billion, which is a growth of 18.16% compared to its previous PAT of N12.41 billion in Q3’17.
The earning per share (EPS) of the group in Q3’18 was N0.50. With reference to the price of N6.2 it closed on Monday, January 28, 2019, the P.E ratio of Union bank was 12.40x, with earnings yield of 8.06%