Nigerian Bank Nigeria Union Bank Nigeria Plc – Union Bank Saves N345 Million On Operational Activities

Union Bank

Source: Kayode Ekundayo, Daily Trust, 9 November 2009

Lagos — The Group Managing Director of Union Bank Mrs. Funke Osibodu said the management of the bank has saved over N345 million on operational activities in the last two and half months. She said the cost management strategy is expected to culminate in the saving of N200 million for the purchase of diesel for the bank’s head office over the next one year while additional N145 million was also saved by the bank for purchase of new computers.

Osibodu, who led two of her Executive Directors during an interactive session with the media at the weekend said already over N20 million has been saved on diesel for the head office alone and by the time the cost management strategy is extended to other branches of the bank, about N1 billion is expected to be saved in one year.

She said rather than toe the line of the old order – by buying diesel from distributors, Union Bank has been purchasing diesel directly from the importers – thereby reducing costs. Giving an update on the loan recovery efforts of the bank Mrs. Osibodu said the bank has recovered N31 billion and that the bulk came from Transcorp Plc, which paid N22.1 billion. She said out of the funds recovered from Transcorp, N600 million was from the government, while the remaining was in promissory notes, earning interest of 8.6 per cent per annum for the bank. The GMD also revealed that the bank’s liquidity ratio had at different intervals reached a peak of 42 per cent and an average of 26 per cent. The stipulated liquidity ratio for all banks in the country is 25 per cent.

Nigerian Bank Nigeria Union Bank Nigeria Plc