Union Bank Nig. Plc prides itself as Nigeria’s most reliable and trusted banking partner, who makes lives better by delivering the simplest, smartest solutions and guaranteeing the best banking experience.
For those who have been around in decades, this claim is true. In fact, Union Bank has proven to be the largest commercial bank, serving individuals, small and medium-sized companies, as well as large corporations and organizations in a very long time, standing.
Despite the ravaging tsunami that has hit the financial world in Nigeria, which has seen many aged banks folding up, Union Bank’s story has been quite different and endearing.
Give it to the Bank’s C.E.O. Chukwuemeka Emuwa, who had the sole mission was to refocus the bank on the path to profitability, when he was appointed in 2009. This was a critical mission because the bank just emerged from a financially difficult period which was occasioned by the 2009 banking sector crisis.
In July 2009, it was rated the 556th largest bank in the world and the 14th largest bank in Africa. As of Mar 31, 2018, the bank’s asset base was estimated at NGN1, 381 billion (US$4.1billion). The shareholders’ equity at that time was estimated at NGN286 billion (US$851 million).
Tracing its history back to 1836 when London bankers and British merchants obtained a royal charter from William IV to conduct banking business in the Caribbean. These groups of investors then formed Colonial Bank. Following an act of parliament empowering the bank to open more branches beyond the Caribbean, Colonial bank began operations in Nigeria in 1917. The Bank’s operations started in Lagos, Jos and Port-Harcourt this year. Further centers were opened in financially important areas, in 1918, the bank opened additional centers at Ebute-Metta, Onitsha, Ibadan, Kano and Zaria and then added another branch at Burutu in 1921. During this time, Colonial’s banking activities also covered other cities in British West-Africa including Accra and Freetown. In 1925, Barclays Bank acquired Colonial Bank, changing the bank’s name to Barclays Bank (Dominion, Colonial and Overseas) and later Barclays Bank (DCO). During the period between 1925 and 1950, commercial expansion was hampered by the Great Depression and World War II, though the bank continued to operate steadily opening a few branches but also closing some branches. In the 1950s, the bank increased operations in Nigeria and by the beginning of 1960 it had a total of 41 branches.
In 1969, Barclays Bank DCO was incorporated in Nigeria, as Barclays Bank of Nigeria Limited, to comply with new banking laws enacted in 1968.
In 1971, the shares of the bank stock were listed on the Nigerian Stock Exchange. In the same year, 8.33% of the bank’s shares were offered to Nigerians. The following year, the Federal Government of Nigeria acquired 51.67% ownership of the bank, leaving Barclays Bank Plc. of London with 40% ownership. In 1979, that 40% was sold to Nigerian individuals and businesses to comply with then recently enacted banking and investment laws. The bank changed its name to Union Bank of Nigeria Plc, to reflect its new ownership structure.
In 1993, the Federal Government of Nigeria completely divested its ownership in the bank. Subsequently, Union Bank of Nigeria Plc. acquired the former Universal Trust Bank Plc and Broad Bank Limited. It also absorbed its former subsidiary Union Merchant Bank Limited.
Its subsidiaries, Union Bank United Kingdom Plc. and UBN Property Company Limited have been functioning so well.
Union Bank’s management board is led by Emeka Emuwa, who serves as the Managing Director and Chief Executive Officer of the bank. He has been at the helm of the bank since November 2012. Emeka Emuwa was appointed to the Board of Union Bank as the Chief Executive Officer (CEO) in November 2012. Prior to joining Union Bank, he had spent 25 years at Citibank where he rose through the ranks from Management Associate in 1986 to Managing Director, Citibank Nigeria Ltd, and Citi Country Officer, Nigeria.
Mr Emuwa knows his onions in the business world, he is one of the most prominent business executives in Nigeria, who has successfully established himself as a leading figure in the world of global finance.
He is an alumnus of the University of Lagos where he bagged a B.Sc. in Finance. He also studied at Purdue University’s Krannert School of Management, graduating with an M.Sc. in Management. Apparently, these degrees prepared him for his accomplished banking career, details of which you will see shortly.
According to information contained in Union Bank’s 2017 full-year financial report, Mr Emeka Emuwa’s direct shareholdings in the company stands at 53,354,517 units. He also has some 12,069,966 units of indirect shareholdings in the company. These units of shares, multiplied by the company’s share price of N5.15 as at yesterday December 3rd, translates to some N336.9 million.
Under his leadership, the bank’s financial performance in the past years has been favourable. This is because revenue grew from N79.6 billion in 2013 to N105.9 billion in 2017. Similarly, profit after tax rose from N3.8 billion to N14.3 as at 2017.
Olamide Adeniji is a member of the Editorial Board of TheScript Newspaper
