Union Bank

[Soweto]

Originally Posted by Avocado

UBN may have a poor customer service delivery, but their performance with loans is about the best in the banking sector.

.

How do you mean,what kind of loan. mortgage or car loan.

[c kenneths]

@Avocado, we are waiting for your explanation of why UBN's loans are the best in the industry?

[Owo]

Hi guys,

Whilst we are still waiting for further information from Avocado regarding UBN loans.
I learnt that to obtain a loan form UBN the borrower will require to provide 30% of the required loan while UBN will provide 70%. No information yet regarding repayment methods

cheers

[Betiku Franklin Olugbenga]

Originally Posted by Owo

Hi guys,

Whilst we are still waiting for further information from Avocado regarding UBN loans.
I learnt that to obtain a loan form UBN the borrower will require to provide 30% of the required loan while UBN will provide 70%. No information yet regarding repayment methods

cheers

yeah, that is the procedure with most banks nowadays
And @Avocado, is that a fact?

[Apache]

Originally Posted by Avocado

UBN may have a poor customer service delivery, but their performance with loans is about the best in the banking sector.

.

Avocado, while waiting for your clarifica6tions, i know that bank's rating on loans are being measured by NPL % i.e non performing loans to total loan ratio. This is the industry practice. Now based on this, I can assure you that UBN is not the best. Infact, as at 2006, the first generation banks account for the worst performers in terms of NPL%. As at 2006, Zenith bank still ranks the best with a ratio of less than 2%

[Owo]

Hi Guys,
I thought I should share this with you, I sent an e-mail to UBN customer services asking them when the full year result for 2007 will be released. The replied was it will bereleased next month after the AGm.
I must commend the prompt reply of UBN customer services.

owo

[wanaj0]

Hearing a 1 for 5 and 1.00 dividend.

[c kenneths]

The N1.00 is getting so steady, shouldnt they be thinking of upping the dividend after two years?

And the bonus is rather meager, but I support them on that, no need to have too many shares, it will still be bad for the shareholders.

[Yusuf]

Originally Posted by wanaj0

Hearing a 1 for 5 and 1.00 dividend.

Not a bad one if it comes out to be true. I kept a little quantity of the stock for any surprise.

Waiting for the real result.

[Murphy]

Originally Posted by Yusuf

Not a bad one if it comes out to be true. I kept a little quantity of the stock for any surprise.

Waiting for the real result.

@ wanajo and all,
Thisday reported about upcoming UBN AGM 28th Nov. and a proposed dividend of N1 and bonus of 1 for 5. About N9b goodwill written off at once from profit. This Goodwill is raising it's head everywhere and denying us of our hard earned profit.
THISDAY ONLINE

[Ahaah]

Originally Posted by Murphy

@ wanajo and all,
Thisday reported about upcoming UBN AGM 28th Nov. and a proposed dividend of N1 and bonus of 1 for 5. About N9b goodwill written off at once from profit. This Goodwill is raising it's head everywhere and denying us of our hard earned profit.
THISDAY ONLINE

Dont fall for the misinformation. The goodwill was written-off against share premuim account and not against Profit Before Tax. The write-off of the goodwill against the share premium account (one of the reasons for the last extra-ordinary meeting held by the bank was to seek approval for these) therefore effectively boosted the profit declared by the Bank by the provision for goodwill no longer required. What is denying us hard earned profit are bad loans and provision for losses on them. The good news is that some of the bad loans MAY be recovered in the future thereby boosting the profit of the bank in the year of recovery.

[pumping]

Originally Posted by Ahaah

Dont fall for the misinformation. The goodwill was written-off against share premuim account and not against Profit Before Tax. The write-off of the goodwill against the share premium account (one of the reasons for the last extra-ordinary meeting held by the bank was to seek approval for these) therefore effectively boosted the profit declared by the Bank by the provision for goodwill no longer required. What is denying us hard earned profit are bad loans and provision for losses on them. The good news is that some of the bad loans MAY be recovered in the future thereby boosting the profit of the bank in the year of recovery.

Are you sure about this? UBN is claiming a PAT 25.9B before provision for goodwill.

allAfrica.com: Nigeria: Union Bank to Declare N17.4 Billion Profit (Page 1 of 1)

"Profit before provision for risk assets actually rose by 41.61 per cent from N18.29 billion posted the previous year to N25.90 billion but the huge provision for the goodwill liability, dragged the profit level down to N17.4 billion. The bank is expected to write off about N9 billion as good will this year."

[Ahaah]

Originally Posted by pumping

Are you sure about this? UBN is claiming a PAT 25.9B before provision for goodwill.

allAfrica.com: Nigeria: Union Bank to Declare N17.4 Billion Profit (Page 1 of 1)

"Profit before provision for risk assets actually rose by 41.61 per cent from N18.29 billion posted the previous year to N25.90 billion but the huge provision for the goodwill liability, dragged the profit level down to N17.4 billion. The bank is expected to write off about N9 billion as good will this year."

I am 98% sure (2% for Naija factor).

Risk Assets are made up of loans and advances and contingent assets.

Profit Before Provision For Risk Assets=Profit Before Provision For Loan and/or contingent assets Losses.

There was no provision for goodwill by the bank in the year ended 31st March 2007. The goodwill was written-off against share premium account.
Proshare News

[Ahaah]

I wanted to edit my last post but I was unsuccessful.

[pumping]

I'd like to see the statement when it is out. I don't see why he made mention of the impact on profit if is coming from the share premium account. That is in the least misleading. From the interview, the suggestion is that there is an exceptional cost that shaved the PAT. Na wa o.

[nicolas]

i am placing an order tommorow for union bank shares, does anyone see the price increasing to 15% from friday to 2 days before the close of the register?

[dotunk]

forget it Nicolas, UBN is a slow company. the fact is seen in their dividend and bonus payout.

the price may rise but not significantly