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Titan Trust Bank was on a growth path before its recent acquisition of Union Bank as can be seen from its 2021 financials.
Titan Trust which completed the acquisition of 93.41 per cent of Union Bank share capital from the majority shareholders – Union Global Partners Limited, Atlas Mara Limited and others., in June had its profit surge by 52%, last year (as a standalone entity) as it expanded its footprints across Nigeria.
Titan Trust Bank reported after-tax profits of N4.4 billion in the 2021 financial year led by interest income which rose to N9.37 billion, up 89% compared to 2020 levels, according to data from its financial statement seen by MoneyCentral.
Loans and advances to customers increased by 62.7% to N63 billion in the period, leading to a 166% jump in interest income from loans and advances which came in at N4.348 billion, compared to N1.629 billion in 2020.
Titan Trust Bank also continued to mobilize deposits which rose by 112% in the period to N182.38 billion.
Customer acquisition grew by 196% in the period under review, while mobile subscription increased by 154% year-on-year.
Subscribers to the bank’s Unstructured Supplementary Service Data (USSD) platform saw a jump of 156% in 2021 financial year while corporate internet banking users increased by 357%, indicating the bank’s focus on providing user friendly digital platforms to serve the needs of the various segments of its customers.
The banks total assets surged to N246.2 billion in the period, led by loans and other assets.
Union Bank had a market capitalization of N190.74 billion at the close of trading Tuesday. Union Bank of Nigeria Plc (UBN) closed at N6.25, -8.09% below its 52-week high of N6.80, set on Apr 22, 2022. The stock is up 5.93% in the past year.
Union Banks Gross earnings were up 12.4% to N140.6 billion in the third quarter (Q3) of 2022, driven by higher earning assets, Profit Before Tax increased by 14% to N18.2 billion, while customer deposits were up 12.7% to N1.53 trillion.
Titan Trust Bank had not applied the provisions of IFRS 3- Business Combination for its 2021 results, as the date of completion and final acquisition value were still being finalised as at last year-end.
The bank did not contravene any regulation during the period. Hence, there was no warning, sanction or penalty imposed on the bank by the regulators.