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UNION BANK OF NIGERIA PLC
2009 FINANCIAL STATEMENTS
CONTENTS PAGE
Directors, professional advisers, etc 2 Results at a glance 3
Report of the directors 4 Report of the independent joint auditors
18 Report of the Audit Committee 20
Statement of accounting policies 21 Group balance sheet 28 Group
profit and loss account 29 Group statements cash flow 30 Notes to
the financial statements 31 Group statement of value added 65 Bank
statement of value added 66 Group five-year financial summary 67
Bank five-year financial summary 68
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UNION BANK OF NIGERIA PLC
COMPANY REGISTRATION NO.RC 6262
DIRECTORS, PROFESSIONAL ADVISERS, ETC DIRECTORS: Yakubu, Musa
Gella - Chairman
Osibodu, Olufunke Iyabo (Mrs.) - Group Managing Director &
Chief Executive Appointed w.e.f. 14 August, 2009 Ebong, Bartholomew
Bassey - Ceased to be a Director w.e.f. 14 August, 2009 Abdullahi,
Ado - Ceased to be a Director w.e.f. 14 August, 2009 Abubakar,
Ahmadu Adeosun, Adekunle Mickey - Appointed w.e.f. 3 September,
2009 Adeyemi, Kenneth Sola - Retired w.e.f. 13 August, 2009 Ahmed,
Mansur Akande, Onikepo Chief (Mrs) Ayininuola, Samuel Idowu -
Ceased to be a Director w.e.f. 14 August, 2009 Emeruem, Ebenezer
Uzoma - Ceased to be a Director w.e.f. 14 August, 2009 Esangbedo,
Anthony Ebhodaghe - Ceased to be a Director w.e.f. 14 August, 2009
Gobir, Ibrahim Abdullahi Ikeazor, Philip - Appointed w.e.f .3
September, 2009 Kwargana, Ibrahim Abubakar - Appointed w.e.f. 3
September, 2009 Obigwe, Austen Iheanyi Njideofo - Ceased to be a
Director w.e.f. 14August, 2009 Odimegwu, Festus Boniface Oha
Okoloko, Onajite Olusanya, Olusegun Shonubi, Folashodun Adebisi -
Appointed w.e.f. 3 September, 2009 Tadaferua, Augustine Oghenovo -
Appointed w.e.f. 9 July, 2009 and Ceased to be a Director w.e.f. 14
August, 2009
Udofot, Cosmas Paul
COMPANY
SECRETARY: Odikanekwu, Emily Ifeyinwa (Mrs.) REGISTERED Stallion
Plaza, OFFICE: 36, Marina, Lagos JOINT Akintola Williams Deloitte,
AUDITORS: [Chartered Accountants], 235,Ikorodu Road, Ilupeju,
Lagos. Baker Tilly Nigeria, [Chartered Accountants], 376,Ikorodu
Road, Maryland, Lagos. REGISTRAR AND Union Registrars Limited,
TRANSFER 2, Burma Road, OFFICE: Apapa.
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UNION BANK OF NIGERIA PLC RESULTS AT A GLANCE
AS AT 31 MARCH, 2009 The Group The Bank 2009 2008 2009 2008
Major profit and loss account items: Nm Nm Nm Nm Gross earnings
147,319 112,988 130,187 92,935 Interest paid 41,733 26,973 37,565
18,420
Net interest revenue 71,073 55,059 66,806 48,304 Provision for
doubtful accounts 83,283 5,800 83,418 5,603 Overhead expenses
including depreciation 65,842 47,203 57,697 39,166 (Loss)/profit
before tax and exceptional item (43,539) 33,012 (48,493) 29,746
(Loss)/profit before tax (67,006) 33,012 (66,918) 29,746
(Loss)/profit after tax but before minority interest (72,854)
26,855 (71,052) 24,737 Minority Interest 333 1,116 - -
(Loss)/profit after tax and minority interest (72,521) 25,739
(71,052) 24,737 Dividend declared during the year 11,580 9,652
11,580 9,652
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Major balance sheet items:
Loans and advances 421,473 258,959 401,546 244,845 Deposits,
current and other accounts 675,112 682,309 758,390 649,334
Called-up share capital 6,755 5,790 6,755 5,790 Shareholders fund
58,826 119,160 53,145 111,271 Total assets 1,238,797 1,128,890
1,106,779 907,074 Total assets and contingencies 1,329,920
1,215,745 1,197,902 993,929
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Per 50 kobo share data (basic):
(Loss)/earnings (N5.37) N2.32 (N5.26) N2.14 Net assets N4.35
N10.29 N3.93 N9.61 Total assets N91.69 N97.49 N81.92 N78.33 Stock
Exchange quotation as at 31 March - - N10.00 N43.50
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Number of employees 7,078 7,746 5,881 7,276 Number of branches
489 467 427 405 Number of shares in issue 13,510 11,580 13,510
11,580
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UNION BANK OF NIGERIA PLC
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH, 2009
The Directors have pleasure in submitting their report together
with the group financial statements for the year ended 31 March,
2009. 1. RESULT N'm The group loss for the year after providing for
taxation was (72,854) Less: Minority interest 333 ---------- Loss
after taxation and minority interest transferred to general reserve
(72,521) ======= 2. LEGAL FORM The Bank commenced operations in
Nigeria in 1917 as a branch of Barclays Bank Dominion
Colonial Overseas (DCO). It was incorporated as a private
company limited by shares in Nigeria in 1969 and it became a public
company limited by shares in 1970. The Bank's shares are quoted on
the Nigerian Stock Exchange.
3. PRINCIPAL ACTIVITIES The company is engaged in the business
of commercial banking.
4. DIRECTORS .1 The names of the present directors are stated on
page 2. .2 The following directors ceased/retired as members of the
Board on the dates indicated below: - Walter Chukwukaodinaka Orji
Mbah Retired 16 March, 2009
Kenneth Sola Adeyemi Retired 13 August, 2009
Batholomew Bassey Ebong Ceased 14 August, 2009
Ado Abdullahi Ceased 14 August, 2009
Samuel Idowu Ayininuola Ceased 14 August, 2009
Ebenezer Uzoma Emeruem Ceased 14 August, 2009
Anthony Ebhodaghe Esangbedo Ceased 14 August, 2009
Austen Iheanyi Njideofo Obigwe Ceased 14 August, 2009
Augustine Oghenovo Tadaferua Ceased 14 August, 2009
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REPORT OF THE DIRECTORS (contd) .3 Since the last Annual General
Meeting, the following Directors were appointed to the Board and
being
eligible, offer themselves for election: - Olufunke Iyabo
Osibodu (Mrs) 14 August, 2009 Adekunle Mickey Adeosun 3 September,
2009 Philip Ikeazor 3 September, 2009 Ibrahim Abubakar Kwargana 3
September, 2009 Folashodun Adebisi Shonubi 3 September, 2009 .4 In
accordance with Section 90 of the Bank's Articles of Association,
the underlisted Directors retire
by rotation and, being eligible, offer themselves for
re-election: - Ahmed Abubakar Ibrahim Abdullahi Gobir Mansur Ahmed
Olusegun Olusanya Cosmas Paul Udofot 5. DIRECTORS' INTERESTS .1 The
direct interests of the Directors in the issued share capital of
the Bank as recorded in the register of
directors' shareholdings are as follows: -----Ordinary shares of
50k each at-----
8 October, 31 March, 31 March,
2009 2009 2008
M. G. Yakubu 287,877 287,877 246,752 O. I. Osibodu (Mrs.)
201,841 N/A N/A B. B. Ebong N/A 12,822,042 10,990,322 Ado Abdullahi
N/A 3,223,580 2,004,667 A. Abubakar - - - A. M. Adeosun - N/A N/A
K. S. Adeyemi N/A 1,717,846 1,306,327 M. Ahmed 28,000 28,000 26,776
O. Akande Chief (Mrs.) 75,006 27,137 - S. I. Ayininuola N/A
14,331,026 12,283,737 E. U. Emeruem N/A 1,296,843 1,111,580 A. E.
Esangbedo N/A 1,953,066 1,674,057 I. A. Gobir 372,991 372,991
725,054 P. Ikeazor - N/A N/A I. A Kwargana - N/A N/A A. I. N.
Obigwe N/A 34,454,746 29,532,640 F. B. O. Odimegwu 4,632 1,404,237
1,203,632 O. Okoloko - - - O. Olusanya 26,486,833 26,486,833
22,703,000 F. A. Shonubi 14,686 N/A - A. O. Tadaferua N/A N/A N/A
C. P. Udofot 181,918 181,918 155,930 W. C. O. Mbah N/A 3,090,705
2,649,176
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.2 The directors have not notified the Bank of any indirect
interests they hold in the shares of the Bank.
.3 None of the directors has notified the Bank for the purpose
of Section 277 of the Companies and
Allied Matters Act, Cap C20 LFN 2004 of any disclosable interest
in contracts with which the Bank was involved during the year under
review.
6. RECORD OF DIRECTORS ATTENDANCE
In accordance with Section 258 (2) of the Companies and Allied
Matters Act Cap C20 LFN 2004, the Record of Directors attendance at
Directors meetings during the financial year under review is
available for inspection at the Annual General Meeting.
7. DIRECTORS' RESPONSIBILITIES The directors are responsible for
the preparation of financial statements which give a true and
fair
view of the state of affairs of the group at the end of each
financial year, and of the profit or loss for that year and comply
with the Banks and Other Financial Institutions Act, Cap B3 LFN
2004 and the Companies and Allied Matters Act Cap C20 LFN 2004. In
doing so, they ensure that:
- internal control procedures are instituted which, as far as is
reasonably possible,
safeguard the assets, prevent and detect fraud and other
irregularities; - proper accounting records are maintained; -
applicable accounting standards are followed; - suitable accounting
policies are adopted and consistently applied; - judgements and
estimates made are reasonable and prudent; and - the financial
statements are prepared on the going concern basis, unless it is
inappropriate to presume
that the Bank will continue in business. 8. SHAREHOLDING
STRUCTURE
As shown in the analysis of shareholding on page 9 of the
financial statements, the shares of the Bank are held by a diverse
number of shareholders. The interests of shareholders are protected
by giving the prescribed notices for statutory meetings, affording
shareholders opportunity to provide guidance and criticisms at the
various shareholders fora and general meetings. Furthermore, three
representatives of shareholders are voted into the Banks Audit
Committee (one of whom is the Committee chairman) and giving the
internal and external auditors unfettered access to the
committee.
9. CORPORATE GOVERNANCE
Following the Central Bank of Nigeria Order of 14 August 2009
the membership of the Board of the bank reduced from seventeen (17)
Directors to fourteen (14) comprising five (5) Executive Directors
(including the Group Managing Director/Chief Executive) and nine
(9) Non-Executive Directors, including the Chairman of Board. It
should be noted that five of the Board members are independent
Directors.
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REPORT OF THE DIRECTORS (contd)
To qualify as a member of our Board, there are two critical
qualities we look for, including competence, character/integrity.
For the first parameter, a suitable Director should be
well-qualified professionally, be of abundant skills and knowledge,
and be very experienced. As for the second criterion, a Director
must not be of doubtful character, should not have any physical or
mental impairment and must have a high moral standard and sense of
what is right and wrong.
FUNCTIONS OF THE BOARD OF DIRECTORS
- Setting the banks Vision, Mission, Objectives and Strategies
and upholding and reinforcing its
core values - Ensuring that the environment is enabling to
achieve the banks goals through appropriate
sourcing of materials/capital inputs as well as enhancing,
building and appointing high-level Managers to manage the strategic
desks in the bank.
- Considering and approving the banks annual budgets.
- Periodic review of the banks organogram whereby various
Divisions and Departments and Units
are organized in a mutually collaborative and synergistic manner
to ensure maximum efficiency and effectiveness.
- Delegating and delineating appropriate responsibilities and
authorities to Executive Management
and GMD/CE and from them down the banks hierarchy.
- Formulating policies regarding external relations such as
public image and social responsibility as well as policies relating
to institutional capacities such as take-overs, mergers,
acquisitions, floatation of stocks, et cetera.
- Monitoring and evaluation of banks performance
- Setting the general guidelines for personnel and employment
policies to ensure that staff with requisite background are
attracted and retained. Similarly policies regarding management
development and employee rewards/sanctions are considered and
instituted.
The Board of Directors meets, at least, six times in a year.
THE BOARD AND DECISION-MAKING
The responsibility of the Board is in three broad categories.
The first is the appointment and supervision of the executive
management team. It also spells out the policy framework that
guides management in running the affairs of the company day-to-day
and ensures that the company complies with policies, rules and
regulations as well as reporting/accounting and ethical standards.
Furthermore, the Board rewards management based on performance
against set targets. The division of labour is, therefore, such
that Executive Management is responsible for operational and
tactical decisions.
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REPORT OF THE DIRECTORS (contd)
Both the Board and Management rely on the Committee structure
for the effective discharge of their responsibilities. These
committees are shown below:
Audit Committee
This is a Committee of the Annual General Meeting of the bank.
It has a membership of six (6), three of which are elected on the
floor of the Annual General Meeting every year. The election is
always supervised by the Joint External Auditors of the bank. The
membership comprises:-
The Chairman: A knowledgeable Shareholder
Members: Two (2) other Shareholders
Three Non-Executive Directors The functions of the Audit
Committee include, inter alia, the following:
- Ascertain whether the accounting and financial reporting of
the bank is in accordance with legal/statutory requirements and
professional/ethical practices.
- Review the internal control structure and the effectiveness of
the banks system of accounting.
- Make recommendations to the Board with respect to the
appointment, removal and remuneration of the external auditors of
the bank.
- Monitor compliance with the banks code of conduct.
- Authorise the Inspection Department to carry out
investigations into any activities of the bank that are of interest
to the Committee.
- Assess the quality of the financial statements issued by the
bank, prior to their approval by the
Board and Annual General Meeting.
- Review external audit reports, management letters and
debriefing memoranda to ensure prompt action by management.
- Review reports on major defalcations, frauds and thefts within
the bank.
Board Establishment & Services Committee
This is a standing Committee and it is headed by a Non-Executive
Director. The membership is as follows: -
i. Engr. Mansur, Ahmed - Chairman ii. Group Managing
Director/Chief Executive iii. Executive Director (Commercial &
Retail Banking (South) and Consumer Banking) iv. Executive Director
(Commercial & Retail banking (North) and Public Sector) v.
Executive Director (Operations, Technology & Services)
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vi. Executive Director (Corporate, International, Investment
Banking & Treasury) vii. Mr. Olusegun, Olusanya viii. Dr. F B O
Odimegwu ix. Mr. Onajite, Okoloko x. Mr. Cosmas Paul, Udofot
Functions
The functions of this committee include, amongst others, the
following: -
- To consider and approve human resource strategic issues - To
review and approve promotions to Senior and General Management
positions. - To consider, review and approve salary and
remuneration packages for the generality of staff.
- To consider, review and approve recommendations relating to
safety at work and conduciveness
of the work environment.
- To approve and determine the quantity and quality of human
resources consistent with our level of operations
The Committee holds a minimum of six meetings each year.
Board Finance & General Purposes Committee
This Committee consists of ten (10) members and is chaired by a
Non-Execution Director. The membership is composed as follows:
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i. Alhaji (Dr) Ahmadu, Abubakar - Chairman ii. Group Managing
Director/Chief Executive iii. Executive Director (Commercial &
Retail Banking (South) & Consumer Banking) iv. Executive
Director (Commercial & Retail Banking (North) & Public
Sector) v. Executive Director (Operations, Technology &
Services) vi. Executive Director (Corporate, International,
Investment Banking & Treasury) vii. Dr. Festus Boniface Oha,
Odimegwu viii. Mr. Onajite, Okoloko ix. Engr. Ibrahim Abdullahi,
Gobir x. Chief (Dr.) Mrs. Onikepo, Akande
Functions
The Functions of the Board Finance and General Purposes
Committee are as follows:-
- Appraising matters that impinge significantly (i.e. above
EXCOs powers) on the banks financial resources.
- Considering and recommending the banks Capital and Annual
Budget for Board approval. - Any other special functions as may be
assigned from time to time by the Board.
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The Committee meets, at least, six times a year.
Board Credit Committee
This Board Credit Committee is chaired by a Non-Executive
Director and consists of eleven (11) members. The membership of the
Committee is as follows: -
i. Engr. Ibrahim Abdullahi, Gobir - Chairman ii. Group Managing
Director/Chief Executive iii. Executive Director (Comercial &
Retail Banking (South) & Consumer Banking) iv. Executive
Director (Commercial & Retail Banking (North) & Consumer
Banking) v. Executive Director (Operations, Technology &
Services) vi. Executive Director (Corporate, International,
Investment Banking & Treasury) vii. Dr. Cosmas Paul, Udofot
viii. Dr. Festus Boniface Oha, Odimegwu ix. Chief (Dr.) Mrs
Onikepo, Akande x. Dr. Mansur, Ahmed xi. Alhaji (Dr) Ahmadu
Abubakar
Functions
The functions of this Committee include, inter alia, the
following:
- To approve secured loans within its limit
- To present summary of approvals to the Board
- To consider and recommend to the Board any banking facilities
above its discretion as well as those approved in anticipation of
Board on account of exigency of operations.
Like the other Board Committees, this Committee meets, at least,
six times each year.
Board Risk Management Committee
The Committee comprises ten (10) members with a Non-Executive
Director as Chairman. The
membership is as follows: - i. Mr. Olusegun, Olusanya -
Chairman
ii. Executive Director (Commercial & Retail Banking (South)
& Consumer Banking) iii. Executive Director (Commercial &
Retail Banking (North) & Public Sector iv. Executive Director
(Operations, Technology & Services)
v. Executive Director (Corporate, International, Investment
Banking & Treasury) vi. Dr. Festus Boniface Oha, Odimegwu vii.
Mr. Onajite, Okoloko viii. Engr. Mansur, Ahmed ix. Alhaji (Dr)
Ahmadu, Abubakar x. Engr. (Dr.) Ibrahim Abdullahi, Gobir
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Strategic Functions
- Oversight on banks Risk Management Framework - Oversight on
Organisational and Reputational Risks - Oversight on
Statutory/Regulatory Risks
Specific Functions
- Oversight on Credit Risks - Oversight on Operational Risks -
Oversight on Market Risks - Oversight on Liquidity Risks
The Committee holds a minimum of six meetings a year.
MANAGEMENT COMMITTEES
Executive Committee - EXCO
This is a five-member Committee chaired by the Group Managing
Director/Chief Executive. The structure of the Committee is as
follows:
i. Group Managing Director/Chief Executive - Chairman ii.
Executive Director (Commercial & Retail Banking (North) &
Consumer Banking) iii. Executive Director (Commercial & Retail
Banking (South) & Consumer Banking) iv. Executive Director
(Operations, Technology & Services) v. Executive Director
(Corporate, International, Investment Banking & Treasury)
Functions:
- Translating the Boards Vision, Mission, Objectives and
Strategies into tactical and operational
plans and setting goals and targets of achievement - Monitoring
performance via periodic appraisal of performance statements and
taking prompt
remedial steps to check adverse variances.
- Upholding and reinforcing the banks core values through
Executive action such that the Executives are the embodiments of
such values
- Day-to-day administration of the bank
- Piloting and guiding the implementation of decisions
- Rewarding performance and sanctioning under-performance and/or
staff misdemeanor.
- Ensuring an enabling environment by enforcing discipline and
industrial harmony.
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- To handle all personnel matters falling within its discretion
with recommendation to the Board for those falling outside it for
such matters ranging from recruitment, training, deployments,
promotions, emoluments, etc, to terminations/dismissals
- To ensure that the bank meets its social responsibilities and
maintains a good image before its
various publics. The Committee meets once every week.
General Management Committee (GEMCO)
The Committee is composed of all staff in the General Management
cadre. The actual composition is dynamic and depending on the
operational structures and proposition of the bank at any given
time. The membership is as follows: -
- Group Managing Director/Chief Executive - Chairman - All
Executive Directors - All Deputy General Managers - All Assistant
General Managers - Heads of Departments - Zonal Coordinators -
Managers of Business Development Centres - Corporate Affairs
Manager - Security Manager
Functions
- To review performance reports from Branch, Zonal Offices and
Head Office Departments and
identify strategies for meeting agreed targets.
- To deliberate and resolve outstanding and/or peculiar problems
of any Business Development Centres and Zone
- To update Managers and other Executives with latest
developments in the banks operations
and/or new policy thrusts from the Central Bank of Nigeria. The
Committee meetings are held quarterly or as may be directed.
Asset and Liability Committee
The Asset/Liability Committee is an eleven-member committee with
the Group Managing Director/Chief Executive as the Chairman. The
composition is as follows:
Group Managing Director/Chief Executive - Chairman
- All Executive Directors - Head, Treasury - Head, Finance &
Planning - Head, Risk Management - Head, Marketing.
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Strategic Functions
- Management of Assets and Liabilities
Specific Functions:
- Balance Sheet Management - Spread Management - Interest Rate
Management - Cash Flow Management
Credit Committee (CRECO)
This is a five-man Committee comprising the following: i. Group
Managing Director/Chief Executive - Chairman ii. Executive Director
(Commercial & Retail Banking (North) & Consumer Banking)
iii. Executive Director (Commercial & Retail Banking (South)
& Public Sector iv. Executive Director (Operations, Technology
& Services) v. Executive Director (Corporate, International,
Investment Banking & Treasury)
In attendance at CRECO meetings are the Deputy General Managers
in charge of:
a. Inspection b. Legal Services c. Credit Policy and Control d.
Special Asset e. Commercial Banking (South) f. Commercial Banking
(North) g. Debt Recovery h. Treasury i. Corporate Banking (General)
j. Corporate Banking (Energy) k. Foreign Operations l. Special
Products
Functions
The specific functions of this Committee include, among others,
the following:
- To formulate and review policies regarding loans and advances
- To consider and recommend all credit matters above its limit to
the Board Credit Committee or
the Board for approval - To review the quality and structure of
Credit Portfolios
The Credit Committee meets weekly.
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REPORT OF THE DIRECTORS (contd)
Computer Policy Advisory Committee
This Committee deals with policy matters on IT-related issues.
The composition comprises as follows: -
- Group Managing Director/Chief Executive - Chairman - Executive
Director (Commercial & Retail Banking (South) & Consumer
Banking) - Executive Director (Commercial & Retail Banking
(North) & Public Sector) - Executive Director (Operations,
Technology & Services) - Executive Director (Corporate,
International, Investment Banking & Treasury) - Chief Inspector
- Head, Information Technology Department - Head, Finance &
Planning Department - Head, Internal Control Department - Assistant
General Managing, Group Corporate Planning Department
Specific Functions
- To fashion out and review regularly, an appropriate IT
Strategy for the bank
- To ensure that the bank is well positioned for the future
information super highway
- To ensure high computer literacy among Union Bank Staff
- To play the role of policy advocacy in matters relating to
computerization and information technology
- To advise the bank on IT trends and expenditure
10. SUBSTANTIAL INTEREST IN SHARES Nigerian citizens and
associations held all the ordinary shares of the Bank as at 31
March, 2009. No individual shareholder held more than 10% of the
called up share capital of the Bank as at 31
March, 2009 and 8 October, 2009.
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11. ANALYSIS OF SHAREHOLDINGS AS AT 31 March, 2009
Number of Percentage of
Range shareholders Shares held shareholding
%
1 - 1,000 75,443 34,109,884 0.25 1,001 - 5,000 244,631
556,014,310 4.12 5,001 - 10,000 65,485 468,252,842 3.46 10,001 -
50,000 86,437 1,818,130,057 13.46 50,001 - 100,000 11,793
821,023,608 6.08 100,001 - 500,000 8,737 1,657,744,206 12.27
500,001 - 1,000,000 849 592,006,372 4.38 1,000,001 - 5,000,000 634
1,254,781,017 9.29 5,000,001 - 10,000,000 69 487,623,940 3.61
10,000,001 and above 110 5,820,313,764 43.08 ----------
----------------- ------- 494,188 13,510,000,000 100.00 ======
========== ===== 12. ACQUISITION OF OWN SHARES The Bank did not
purchase any of its own shares during the year. 13. FIXED
ASSETS
Movements in fixed assets during the year are shown in Note 14
on pages 37 to 39. In the opinion of the directors, the market
value of the Bank's properties is not less than the value shown in
the financial statements.
14. DONATIONS
Donations made during the year amounted to N93,384,842(2008
N51,846,842) details of which are stated below. No donation was
made to any political organisation.
N Donations to Universities, Polytechnics and Colleges of
Education 16,530,500 Sponsorship of NUGA Games 40,000,000 Joint
Admissions and Matriculation Board 2,000,000 Donation to Rivers
State Summit on Revenue and Tax 10,000,000 Chartered Institute of
Bankers of Nigeria (CIBN) 17,159,458 Nigerian Economic Society
1,000,000 Chartered Institute of Stockbrokers 1,000,000 Education
Summit Senate Committee 5,694,884 --------------- 93,384,842
=========
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REPORT OF THE DIRECTORS (contd)
15 EMPLOYMENT AND EMPLOYEES
.1 Employment of disabled persons It is the policy of the Bank
that there should be no discrimination in considering applications
for
employment including those from disabled persons. All employees
whether disabled or not are given equal opportunities to develop.
As at 31 March, 2009 there were 6 (2008- 6) disabled
persons in the employment of the Bank. .2 Health, safety at work
and welfare of employees
Health and safety regulations are in force within the Bank's
premises and employees are aware of the existing regulations. The
group provides subsidies to all levels of employees for medical,
transportation, housing, etc.
.3 Employees' involvement and training
The Bank is committed to keeping employees fully informed as
much as possible regarding their performance and progress and
seeking their views wherever practicable on matters, which
particularly affect them as employees.
Management, professional and technical expertise are the group's
major assets and investment in
their further development continues. A range of training
provided to its employees, whose opportunities for career
development
within the Bank have thus been enhanced, has extended the groups
expanding skills base. Training is carried out at various levels
through in-house and external courses.
Incentive schemes designed to meet the circumstances of each
individual are implemented
wherever appropriate and some of these schemes include bonuses,
children education grants, scholarships, etc.
16. POST BALANCE SHEET EVENTS Subsequent to the financial year
end, the Central Bank of Nigeria and the Nigerian Deposit
Insurance Corporation carried out joint a special examination of
the Bank and its report identified the following deficiencies in
the Banks operations: -
i) Capital adequacy ratio was negative; ii) Instances of poor
corporate governance were identified; and iii) Liquidity challenges
resulting to recourse to the Expanded Discount Window.
Consequently, on 14 August, 2009, the Central Bank of Nigeria
intervened in the management of the Bank amongst others, by
removing the executive management and appointing new
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17
persons to replace them. It also injected a sum of N120 billion
into the Bank in the form of a 7 year 11% CBN Note to support its
operations and improve the liquidity. Currently, the new management
is putting in place a rigorous risk management system to address
various aspects of risks identified. Debt recovery drive have also
been stepped up and some recoveries made whilst negotiations are on
to reach agreement on the recovery of others.
17. AUDIT COMMITTEE Pursuant to Section 359(3) of the Companies
and Allied Matters Act CAP C20 LFN 2004, the
Bank has an Audit Committee comprising three shareholders and
three directors as follows:
Chief I. P. Nwokocha;
Dr. Marcel Ojinka;
Alhaji Musa Baba Bichi;
Mr. O. Olusanya;
Dr. C. P. Udofot; and
Chief (Mrs.) Onikepo Akande The functions of the Audit Committee
are as laid down in Section 357(6) of the Companies and Allied
Matters Act Cap C20 LFN 2004.
18. AUDITORS
In accordance with Section 357(2) of the Companies and Allied
Matters Act, CAP C20 LFN 2004, the joint auditors Messrs. Akintola
Williams Deloitte and Baker Tilly Nigeria (formerly Oyelami Soetan
Adeleke) have indicated their willingness to continue in office. A
resolution will be proposed authorizing the directors to determine
their remuneration.
BY ORDER OF THE BOARD
Emily I. Odikanekwu (Mrs.) Company Secretary
LAGOS, NIGERIA 8 October, 2009
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18
REPORT OF THE INDEPENDENT JOINT AUDITORS TO THE MEMBERS OF
UNION BANK OF NIGERIA PLC
Report on the Financial Statements
We have audited the accompanying financial statements of Union
Bank of Nigeria Plc, as at 31 March 2009, set out on pages 28 to 68
which have been prepared on the basis of the significant accounting
policies on pages 21 to 27 and other explanatory notes on pages 31
to 64.
Directors Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair
presentation of these financial statements in accordance with the
Companies and Allied Matters Act CAP C20 LFN 2004 and the Banks and
Other Financial Institutions Act CAP B3 LFN 2004. This
responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance as to whether the financial
statements are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures
selected depend on the auditors judgment, including the assessment
of the risks of material misstatement of the financial statements
whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by Directors,
as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
-
19
Opinion
In our opinion, the Group and the Bank have kept proper
accounting records and the financial statements are in agreement
with the records in all material respects and give in the
prescribed manner, information required by the Companies and Allied
Matters Act CAP C20 LFN 2004 and the Banks and Other Financial
Institutions Act CAP B3 LFN 2004. The financial statements give a
true and fair view of the financial position of Union Bank of
Nigeria Plc as at 31 March 2009, and of its financial performance
and its cash flows for the year then ended in accordance with the
Statements of Accounting Standards issued by the Nigerian
Accounting Standards Board.
Emphasis of matter
Without qualifying our opinion, we draw attention to note 49 in
the financial statements, where subsequent events after the Balance
sheet date have resulted in the intervention of the Central Bank of
Nigeria in the Management of the Bank to address reported capital
inadequacy, liquidity problems and corporate governance issues; and
efforts put in place by the newly appointed management of the Bank
with the active support of the Central Bank of Nigeria, to redress
the noted deficiencies and ensure that the Bank continues as a
going concern.
Report on Compliance with Banking Regulations
We confirm that our examination of loans and advances was
carried out in accordance with the prudential Guidelines for
licensed banks issued by the Central Bank of Nigeria. Related party
transactions and balances are disclosed in Notes 10.4 and 54 to the
financial statements in accordance with Central Bank of Nigeria
Circular BSD/1/2004
Contraventions
The Bank contravened certain provisions of the Banks and Other
Financial Institutions Act, Cap B3 LFN 2004. The particulars
thereof and the penalties paid thereon are set out in note 51.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
LAGOS, NIGERIA
8 October, 2009
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20
UNION BANK OF NIGERIA PLC
REPORT OF THE AUDIT COMMITTEE
TO THE MEMBERS OF UNION BANK OF NIGERIA PLC In accordance with
the provisions of section 359 (2) of the Companies and Allied
Matters Act, CAP C20 LFN 2004, we confirm that the accounting and
the reporting policies of the company are in accordance with legal
requirements and agreed ethical practice. In our opinion, the scope
and planning of the audit for the twelve months ended 31 March,
2009 were adequate and we have received the auditors findings on
Management matters and are satisfied with the departmental
responses thereon. We also state that the internal control was
being constantly and effectively monitored. As required by the
Central Bank of Nigeria Circular BSD/1/2004, we reviewed the
insider related credits of the Bank and found them to be as
analyzed in the financial statements. Dated:
Chief I P Nwokocha
Chairman, Audit Committee
Other members of the Committee
Dr Marcel Ojinka Alhaji Musa Baba Bichi Olusegun Olusanya Dr C P
Udofot Onikepo Akande Chief (Mrs)
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21
UNION BANK OF NIGERIA PLC
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2009
The significant accounting policies adopted by the Group in the
previous and current year in the preparation of financial
statements are as follows:-
1. Accounting convention
The financial statements are prepared under the historical cost
convention modified to include
revaluation of certain real estate properties.
2. Basis of consolidation
The group financial statements include the financial statements
of the Bank and its subsidiaries:
Union Bank UK Plc, Union Homes Savings and Loans Plc, Union
Trustees Limited, UBN Property
Company Limited, Union Registrars Limited, Union Capital Market
Limited and Union Assurance
Company Limited.
All intercompany transactions are eliminated on consolidation
and all forms of combinations are
accounted for using the acquisition method of accounting. All
the companies make-up their financial
statements to the year ended 31 March except Union Assurance
Company Limited which makes up
its financial statements to 31 December. This is because of the
regulation governing the Insurance
Industry, which requires that they make-up their financial
statements up to 31 December.
There were no major transactions in the company between January
and March, 2009 that had a
material effect on the Groups financial position as at 31 March,
2009.
3. Cash and short-term funds
Cash and short-term funds comprise cash balances on hand,
balances with the Central Bank of
Nigeria and other banks and financial institutions (local and
foreign). The balance is stated less
provision for doubtful balances.
4. Bills discounted
Holdings in bills discounted are stated at face value as it is
the Banks policy to hold these to
maturity. Diminution in value of investments is stated as a note
in the financial statements.
5. Trading securities
Trading securities comprise of government bonds and other
securities.
i) Trading securities held for fixed redemption date are stated
at cost.
ii) Dealing securities are stated at the lower of cost and
market value.
-
22
iii) Premiums and discounts arising on purchase are amortized on
the yield to redemption.
6. Investments
Investments are classified as short or long term.
i) Short term investments
Debt and equity securities held for a period not exceeding one
year are classified as short term
investments.
ii) Long term investments
Investments intended to be held for over a period exceeding one
year, which are either held to
maturity or available for sale in response to needs for
liquidity or changes in interest rates,
exchange rates or equity prices are classified as long term
investments.
iii) Valuation
a) Quoted investments other than dated securities are stated at
the lower of cost and market value
except Union Assurance Company Limited, which was stated at
market value in line with the
National Insurance Commission directive.
b) Unquoted investments are stated at cost less provision for
doubtful investments.
c) Dated securities are stated at cost.
d) Investments in subsidiaries are stated at cost.
e) The Banks equity investment in Union Bank UK Plc is stated at
cost.
7. Managed funds
Managed funds represent balance held under fund management
arrangement with third parties.
8. Credit portfolio classification
.1 Credit facilities are classified as either performing or
non-performing and are stated after
deduction of appropriate provision.
.2 Provision is made for each account that is not performing in
accordance with the terms of the
related facility as follows:
Interest and/or principal outstanding for over: Classification
Provision
90 days but less than 180 days Sub-standard 10%
180 days but less than 360 days Doubtful 50%
360 days and above Loss 100%
.3 In accordance with the provisions of the Central Bank of
Nigerias Prudential Guidelines,
specific provisions are made on all non performing accounts and
a general provision of at
least 1% is made on risk assets not specifically provided
for.
-
23
9. Income Recognition
Interest income is recognized on an accrual basis. Interest
accruing on non-performing accounts is
suspended and recognized on cash basis only.
Investment income is recognized on accrual basis and credited to
the profit and loss account.
Dividend income is recognized when the right to receive income
is established.
Net premium represents the total amount invoiced to policy
holders less reinsurances and is recognized as income from the date
of attachment of risks. Full credit is taken for premium receivable
upon the issuance of the related policies.
10. Goodwill
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the value of
the identifiable assets and liabilities of a combining entity at
the date of acquisition.
Goodwill is retained in the books and tested for impairment in
accordance with the Statement of
Accounting Standard (SAS) 26 on Business Combination.
11. Equipment on lease
Equipment on lease are accounted for as either Finance or
Operating lease.
Operating leases are recognized as part of fixed assets and
income arising therefrom is accrued
evenly to the profit and loss account over the period. Advances
to customers under finance lease are
stated net of principal repayments and income is recognized in a
manner which provides a constant
yield on the outstanding principal over the lease term.
In accordance with the provisions of the Prudential Guidelines
on credit portfolio classification for
licensed banks, specific provision is made for advances on
finance leases that are non-performing
while a general provision of at least 1% is made on performing
finance lease.
12. Fixed assets
Fixed assets are stated at cost or valuation less accumulated
depreciation. Gains or losses on disposal
of fixed assets are included in the profit and account.
-
24
13. Depreciation
Depreciation charged on fixed assets is calculated on the
straight-line basis at the following annual
rates to write off the cost or valuation over their estimated
useful lives:
Freehold buildings - 2%
Leasehold buildings:
50years and over - 2% Below 50 years - Over the term of the
lease Motor vehicles - 25% Computer equipment - 25% Other fixed
assets - 20% Operating lease - Over the life of the lease
14. Provisions
Provision is recognized when the company has a present
obligation whether legal or constructive as
a result of a past event for which it is probable that an
outflow of resources embodying economic
benefits will be required to settle the obligation in accordance
with the Statement of Accounting
Standard (SAS) 23 on Provisions, Contingent Liabilities and
Contingent Assets.
15. Dividend
Dividend distributions to shareholders are accounted for on the
date of declaration, as they do not
meet the criteria of present obligation in accordance with
Statement of Accounting Standard (SAS)
23. Any proposed dividend is subject to withholding tax at the
appropriate tax rate.
16. Foreign currencies
.1 Transactions in foreign currencies are recorded in Naira at
the rates of exchange ruling at the
dates of the transactions.
.2 Foreign currency balances are converted to the Naira at the
rates of exchange ruling at the balance sheet date, and the
difference arising therefrom is dealt with in the profit and loss
account.
.3 Overseas subsidiary/branches balances are translated to the
Naira at the rates of exchange ruling
at the balance sheet date and any exchange difference arising on
the head office investment in the overseas subsidiary/branches is
dealt with in the exchange difference reserve account.
.4 Any gain on conversion of long-term foreign currency
denominated monetary asset is taken to profit and loss on a
systematic basis over the remaining life of the asset.
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25
17. Taxation
i) Income tax
Income tax is the expected tax payable on the taxable profit for
the year. Income tax is provided
on taxable profit at the current statutory tax rate.
ii) Deferred taxation
Deferred taxation, which arises from timing differences in the
recognition of items for
accounting and tax purposes, is calculated using the liability
method. Deferred income tax assets
and liabilities are measured at the tax rates that are expected
to apply to the year when the asset
is realized or the liability settled, based on the tax rates and
tax laws that have been enacted at the
balance sheet date.
18. Retirement benefits
Arrangements for retirement benefits for members of staff are
based on the provisions of the Pension
Reforms Act 2004 which is contributory. The matching
contributions of 7.5% each from both
employees and the Bank are based on basic salaries, lunch
subsidy, housing and transport
allowances. The banks contributions are charged to the profit
and loss account.
19. Off balance sheet commitments
Transactions that are not currently recognized as assets or
liabilities in the balance sheet but which
nonetheless give rise to credit risks, contingencies and
commitments are reported off balance sheet.
Such transactions include letters of credit, bonds, guarantees,
indemnities, acceptances, trade related
contingencies such as documentary credits, etc.
Outstanding and unexpired commitments at year end in respect of
these transactions are shown by
way of note to the financial statements. The Banks recourse
against the customer in the event of a
call on any of these commitments is recorded as an offsetting
asset of the same amount. Full
provision is made for any loss that may arise from off balance
sheet transactions in accordance with
the Prudential Guidelines for licensed banks.
Fees and commissions earned on such off Balance Sheet
transactions are accrued for and included in
other income in the profit and loss account.
Insiders related off balance sheet engagements are disclosed in
line with Central Bank of Nigeria
guidelines.
20. Earnings per share
The Group presents basic earnings per share (EPS) for its
ordinary shares. Basic EPS is calculated
by dividing the profit and loss attributable to ordinary
shareholders of the Bank by the weighted
average number of shares outstanding during the year.
-
26
21. Investment properties
Investment properties (including associated borrowing costs) are
treated as long-term investments.
They are carried at market values which are determined every
five years by external independent
valuers. Increases in their carrying amount are credited to
revaluation reserve in shareholders
equity. Decreases that offset previous increases of the assets
are charged against revaluation reserve
while, all other decreases are charged to the income statement.
Revaluation surplus on disposed
assets are written back to income in line with the provision of
SAS13.
22. Borrowing Costs
Borrowing costs associated with loans utilized on construction
and/or acquisitions of properties for
re-sale are capitalized. They include interest charges,
establishment fees and other incidental fees
directly related to the creation and arrangement of the
facilities.
23. Technical reserve
These are computed in accordance with the provisions of sections
20, 21 and 22 of the Insurance Act
2003 as follows:
a) General insurance business
i. Reserves for unexpired risks
Reserve for unexpired risks are those proportions of the premium
written in a year, less reinsurance, that relate to the period of
risks from period of cover to the subsequent date of expiry of the
policies and have been computed in accordance with Section 20(1) of
the Insurance Act Cap 117 LFN 2004 which stipulates that the
provision for unexpired risks shall be calculated on a time
apportionment basis of the risks accepted in the year.
ii. Reserves for outstanding claims
This is maintained at the total amount of outstanding claims and
10% of claims deemed to have been incurred but not reported (IBNR)
at the balance sheet date, except for oil and gas where the
reserves is based on loss data of claims.
iii. Contingency reserve
This represent the higher of 3% of total premium and 20% of the
net profit after taxation until the reserve reaches the greater of
minimum paid up capital or 50% of net premium.
b) Life business
i. Life Insurance fund
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27
This is made up of net liabilities on policies in force as
computed by the actuaries at the time
of the actuaries valuation and an additional 25% of net premium
for every year between
valuation dates.
ii. Contingency reserves
This is credited with the higher of 1% of gross premium and 10%
of the net profit after
taxation.
24. Segment reporting
Segment information is presented in respect of the Groups
business and geographical segments. The
business segments are determined by management based on the
Companys internal reporting
structure.
Segment results, assets and liabilities include items directly
attributable to a segment as well as those
that can be allocated on a reasonable basis.
A segment is distinguishable component of the Group that is
engaged in providing related products
or services (business segment), or in providing products or
services within a particular economic
environment (geographical segment), which is subject to risk and
rewards that are different from
those of other segments.
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28
UNION BANK OF NIGERIA PLC
GROUP BALANCE SHEET AS AT 31 MARCH, 2009
The Group The Bank 2009 2008 2009 2008
ASSETS Notes Nm Nm Nm Nm Cash and short term funds 2 71,865
46,956 70,185 42,868 Due from other banks 3 218,826 437,273 163,542
266,379 Bills discounted 4 59,278 94,495 42,982 94,495 Trading
securities 6 100,898 82,165 94,931 77,335 Managed funds 7 9,339
4,000 - Long term investments 8 32,687 28,623 19,797 16,291
Investment properties 14,014 12,958 - - Investments in subsidiaries
and associated companies 9 84 84 14,297 9,607 Loans and advances 10
421,473 258,959 401,546 244,845 Advances under finance lease 11
5,465 4,143 5,465 3,852 Other assets 12 247,580 129,766 240,766
125,282 Equipment on lease 13 161 - - - Fixed assets 14 57,127
29,468 53,268 26,120 ------------- ----------- ----------
----------- TOTAL ASSETS 1,238,797 1,128,890 1,106,779 907,074
Financed by: ======== ======= ======= ======
LIABILITIES Deposits, current and other accounts 15 675,112
682,309 758,390 649,334 Due to other banks 16 245,847 196,928
93,213 62,740 Managed funds 7 9,339 4,000 - - Taxation 17 6,527
5,707 4,633 4,372 Deferred tax 18 5,399 4,721 5,005 4,355 Dividend
19 309 309 309 309 Other liabilities 20 228,088 108,567 192,084
74,693 Liabilities for administered funds 21 9 20 - - Insurance
funds 22 659 507 - - Life insurance fund 23 738 559 - -
------------ ------------ ------------ ---------- 1,172,027
1,003,627 1,053,634 795,803
CAPITAL AND RESERVES ======= ======= ======= ====== Share
capital 24 6,755 5,790 6,755 5,790 Share premium 25 53,023 53,023
53,023 53,023 Bonus issue reserve 26 - 965 - 965 Statutory reserve
27 16,282 16,282 14,385 14,385 Small scale industries reserve 28
6,774 6,774 6,774 6,774 General reserve 29 (52,267) 31,834 (55,686)
26,946 Contingency reserve 30 365 242 - - Exchange difference
reserve 31 1,895 1,895 1,895 1,895 ---------- ---------- ----------
- ------------- Core capital 32,827 116,805 27,146 109,778 Fixed
assets revaluation surplus 25,999 1,493 25,999 1,493 Equities
revaluation reserve 32 - 862 - - ---------- --------- ---------- -
------------ SHAREHOLDERS FUNDS 58,826 119,160 53,145 111,271
Minority interest 33 7,944 6,103 - - ---------- -----------
------------- ------------ 66,770 125,263 53,145 111,271
----------- ------------ ------------ ----------- TOTAL LIABILITIES
1,238,797 1,128,890 1,106,779 907,074 ======= ======= =======
====== CONTINGENT LIABILITIES 34 91,123 86,855 91,123 86,855 ======
======= ======= ====== Total assets and contingencies 1,329,920
1,215,745 1,197,902 993,929 ======= ======= ======= ====== The
financial statements on pages 21 to 68 were approved on 8 October,
2009 by the Board of Directors and signed on its behalf by:
--------------------------------------------------) CHAIRMAN )
--------------------------------------------------) GROUP MANAGING
DIRECTOR & CHIEF EXECUTIVE )
--------------------------------------------------) EXECUTIVE
DIRECTOR
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29
UNION BANK OF NIGERIA PLC
GROUP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH,
2009
-----The Group----- ----The Bank---- 2009 2008 2009 2008
Notes Nm Nm Nm Nm Gross earnings 147,319 112,988 130,187 92,935
====== ======= ====== ====== Interest income 35 115,806 82,032
104,371 66,724 Interest expense 36 (41,733) (26,973) (37,565)
(18,420) Net interest income 74,073 55,059 66,806 48,304
Commissions and other income 37 31,513 30,956 25,816 26,211 105,586
86,015 92,622 74,515 Overheads 38 (61,698) (43,011) (54,184)
(35,548) Depreciation 39 (4,144) (4,192) (3,513) (3,618) ----------
---------- ---------- --------- Profit before provision for risk
assets 39,744 38,812 34,925 35,349 Provision for doubtful accounts
40 (83,283) (5,800) (83,418) (5,603) ---------- --------- ---------
--------- (Loss)/profit before taxation and exceptional item 41
(43,539) 33,012 (48,493) 29,746
Exceptional item
Provision for investment losses through a subsidiary 42 (23,798)
- (18,425) - ---------- ---------- ----------- --------
(Loss)/profit before taxation (67,337) 33,012 (66,918) 29,746
Information Technology Development Levy 20.2 - (307) - (297)
Current taxation 17 (4,839) (5,109) (3,484) (3,983) Deferred
taxation 18 (678) (741) (650) (729) -------- -------- --------
--------- (Loss)/profit after tax (72,854) 26,855 (71,052) 24,737
Minority interest 33 333 (1,116) - - --------- -------- ---------
-------- (Loss)profit after tax and minority interest (72,521)
25,739 (71,052) 24,737 ===== ===== ===== =====
APPROPRIATIONS:
Transfer to statutory reserve 27 - 4,109 - 3,710 Transfer to
small scale industries reserve 28 - 1,237 - 1,237 Retained
(loss)/profit for the year transferred to general reserve 29
(72,521) 20,393 (71,052) 19,790 --------- -------- ---------
--------- (72,521) 25,739 (71,052) 24,737 ===== ===== ===== =====
(Loss)/earnings per 50k share - basic 43 (N5.37) N2.22 (N5.26)
N2.14 ===== ===== ===== ===== The accounting policies on pages 21
to 27 and notes on pages 31 to 63 form part of these financial
statements.
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30
UNION BANK OF NIGERIA PLC
GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH,
2009
The Group The Bank
Note 2009 2008 2009 2008
CASH FLOWS FROM OPERATING
ACTIVITIES Nm Nm Nm Nm Interests earnings 35 115,806 82,032
104,371 66,724 Commission and other incomes 29,415 30,476 24,141
24,920 Lease income 524 301 494 290 Recoveries on loans previously
written off 1,018 179 1,005 179 Interest paid 36 (41,733) (26,973)
(37,565) (18,420) Payments to employees and suppliers (61,698)
(43,011) (54,184) (35,548) Income tax paid (4,019) (3,378) (3,223)
(2,953) --------- ---------- ---------- ------------
Operating profit before changes
in assets/liabilities 39,313 39,626 35,039 35,192
Changes in operating assets/liabilities Loans and advances
(213,433) (109,453) (207,239) (105,148) Advances under finance
lease (1,531) (3,625) (1,825) (3,331) Other assets (140,957)
(105,805) (138,593) (102,311) Trading securities (42,200) (29,985)
(36,021) (6,204) Managed funds (5,339) Investment properties
(1,056) (12,958) - - Deposits, current and other accounts (7,197)
250,225 109,056 231,928 Other liabilities 123,172 6,780 113,488
(10,004) Insurance funds 152 349 - - Liability for administered
funds (11) (10) - - ------------ ---------- ---------- ----------
Net cash (used in)/from operating activities 44 (249,087) 35,144
(126,095) 40,122 ------------ ---------- ---------- ----------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Proceeds from sale of investments - 2,443 - 2,443 Purchase of
Investments (4,149) (1,843) (3,565) (841) (Acquisition)/Redemption
of dated securities 85 789 59 789 Purchase of fixed/leased assets
14 (7,473) (5,674) (6,155) (4,622) Proceeds from sale of fixed
assets 32 224 15 205 Dividend received from subsidiaries - - 164
822 Acquisition of subsidiaries and associated companies - -
(4,690) - ---------- ---------- ---------- --------- Net cash used
in investing activities (11,505) (4,061) (14,172) (1,204)
---------- ---------- ---------- ---------
CASH FLOWS FROM
FINANCING ACTIVITIES Dividend paid 29 (11,580) (9,652) (11,580)
(9,652) New issue - - - - Consolidation expenses - (394) - (394)
---------- ---------- ---------- ---------- Net cash used in
financing activities (11,580) (10,046) (11,580) (10,046) ----------
---------- ---------- ----------
Net (decrease)/increase in cash
and cash equivalents (272,172) 21,037 (151,847) (1,759) Cash and
cash equivalents at 1 April 386,938 365,901 345,676 347,435
---------- - ---------- ----------- ----------- Cash and cash
equivalents at 31 March, 5 114,766 386,938 193,829 345,676 ======
====== ====== ======
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31
UNION BANK OF NIGERIA PLC NOTES TO THE FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH, 2009 1. THE BANK
The bank commenced operations in Nigeria in 1917 as a branch of
Barclays Bank Dominion Colonial Overseas (DCO). It was incorporated
as a private company limited by shares in Nigeria in 1969. It
became a public limited company in 1970. The banks shares are
quoted on the Nigerian Stock Exchange.
2. CASH AND SHORT-TERM FUNDS The Group The Bank
2009 2008 2009 2008
Nm Nm Nm Nm .1 Cash 8,296 7,638 6,632 4,699 --------- ----------
---------- -------- .2 Balances held with the
Central Bank of Nigeria:
Cash reserve requirement 11,595 11,931 11,579 11,916 Current
account 51,974 27,387 51,974 26,253 ---------- ---------- ---------
--------- 63,569 39,318 63,553 38,169 --------- --------- ---------
--------- 71,865 46,956 70,185 42,868 ====== ====== ====== ======
3. DUE FROM OTHER BANKS
In Nigeria 7,367 108,298 7,575 80,458 Outside Nigeria (Note 3.1)
208,673 253,682 156,462 175,651 ---------- ---------- ----------
---------- 216,040 361,980 164,037 256,109 With other financial
institutions 12,824 79,829 9,232 14,338 ---------- ----------
---------- ---------- 228,864 441,809 173,269 270,447 Provision for
non-performing inter- bank placements in Nigeria (Note 3.2)
(10,038) (4,536) (9,727) (4,068) ---------- ---------- ----------
---------- 218,826 437,273 163,542 266,379 ======= ====== ======
====== .1 Included in balances held outside Nigeria is
N59,863,682,041, (2008 - N5,142,446,809) held on behalf of
customers to cover letters of credit transactions.
-
32
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank .2 Provision for non-performing Nm Nm Nm
Nm
inter-bank placements in Nigeria
At 1 April 4,536 5,393 4,068 3,699 Per profit and loss account
(Note 40) 5,502 (857) 5,659 369 --------- --------- ----------
------- At 31 March (Note 3) 10,038 4,536 9,727 4,068 ===== =====
===== ===== 4. BILLS DISCOUNTED Nm Nm Nm Nm
Maturing within 90 days of the date of acquisition: Federal
Government of Nigeria Treasury bills - 67,282 - 67,282 Trade bills
12 - 12 - Maturing after 90days of the date of acquisition: Federal
Government of Nigeria Treasury bills 59,872 27,819 43,576 27,819
--------- -------- ---------- -------- Market value N59.884 billion
(2008- N 95.101bn 59,884 95,101 43,588 95,101 Provision (606) (606)
(606) (606) --------- --------- ---------- -------- 59,278 94,495
42,982 94,495 ====== ===== ===== ====== 5. CASH AND CASH
EQUIVALENTS
Cash (Note 2.1) 8,296 7,638 6,632 4,699 Balance with Central
Bank of Nigeria (Note 2.2) 63,569 39,318 63,553 38,169 Due from
other banks (Note 3) 228,864 441,809 173,269 270,447 Bills
discounted (Note 4) 59,884 95,101 43,588 95,101 Due to other Banks
(Note 16) (245,847) (196,928) (93,213) (62,740) ----------
---------- ---------- ---------- Per cash flow statement 114,766
386,938 193,829 345,676
Provisions: Interbank placements (Note 3.2) (10,038) (4,536)
(9,727) (4,068) Bills discounted (Note 4) (606) (606) (606) (606)
104,122 381,796 183,496 341,002 ====== ====== ====== ====== 6.
Trading securities Maturing within 1 year Federal Government Bond
20,000 4,600 20,000 4,600 Maturing between 1 and 5 years Federal
Government Bond 29,259 27,679 29,259 27,679 Maturing after 5 years
Federal Government Bond 31,700 14,425 31,700 14,425 ----------
--------- --------- - --------- Market value (2009 N80.959billion
80,959 46,704 80,959 46,704 Investment in quoted securities Market
value N19.939 billion (2008-N35.461 billion) 43,406 35,461 32,397
30,631 ---------- ---------- ------------ ---------- 124,365 82,165
113,356 77,335 Less provision for diminution (Note 42) (23,467) -
(18,425) - ---------- -------- ---------- -------- 100,898 82,165
94,931 77,335 ====== ====== ======= ======
-
33
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank 7. Managed funds 2009 2008 2009 2008
Nm Nm Nm Nm Quoted investments - 141 - - Staff pension funds 74
135 - - Deposit on mixed funds 541 540 - - Bankers acceptance and
commercial papers 8,724 3,184 - - --------- -------- --------
---------- 9,339 4,000 - - ===== ===== ===== ====== 8. LONG TERM
INVESTMENTS .1 Quoted debentures, at cost Maturing within 1 year
1st Edo State Govt. Floating rate Redeemable Revenue Bond 2002/2009
(Market value N19,000,000 2008 N19, 000,000) 19 19 19 19
Federal Government Bond 5,274 8,579 - - (Market value 2008
N5,274,000,000 N8, 579,000,000) Lagos State Govt. Floating Rate
Debenture
(Market value N4,687,000,000 2008
N1, 440,000,000) 4,687 1,440 4,668 1,440
Cross River State Tourism Development Bond 2004/2009 (Market
value N 2008 N59million) - 59 - 59 Maturing after 1 year Neimeth
Intl Pharmaceutical Plc 20.5 Convertible stock 11 11 11 11 --------
-------- ------- ------ 9,991 10,108 4,698 1,529 -------- ---------
-------- ------- .2 Quoted investments
HFC Bank (Ghana) Limited 402 343 286 286
Oando Petroleum Plc - 26 - - Afprint Nigeria Plc 3 3 3 3
Investment of subsidiaries 1,435 3,528 - - ------- ------- -------
------- (Market value 2008 N6.863billion) 1,840 3,900 289 289
------- ------- ------- ------
-
34
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank 2009 2008 2009 2008 Nm Nm Nm Nm
.3 Other investments
Unquoted equities, at cost Banque International Du Benin Cotonou
1,152 1,146 1,152 1,146 African Export -Import Bank 21 21 21 21
Investments of subsidiaries 6,178 274 - - Central Securities
Clearing Systems Limited 19 19 19 19 ValuCard Nigeria Plc 126 110
126 110 Nigeria Automated Clearing Systems Limited 42 42 42 42
Inters Switch Nigeria Limited 42 42 42 42 Nigeria Superswitch
Corporation 10 10 10 10 African Finance Corporation (Note 8.6)
5,890 5,890 5,890 5,890 Abuja Investment Property Company 2,481
2,481 2,481 2,481 Unique Venture Capital Nigeria Limited 1,805
1,789 1,805 1,789 Tinapa Business Resort Limited 500 500 500 500
Investment in Small and Medium Scale Industries (Note 8.4) 2,753
2,454 2,753 2,454 --------- -------- -------- ------- 21,019 14,778
14,841 14,504 ===== ===== ====== ===== Total 32,850 28,786 19,828
16,322 Provision for non- performing investments (163) ( 163) (31)
( 31) -------- -------- ------ ------- 32,687 28,623 19,797 16,291
===== ===== ===== =====
.4 Equity participation in Small and Medium Scale Industries
(SMIEIS)
NAME OF COMPANY % No. of 2009 2008 2009 2008 shares
Nm Nm Nm Nm
Mitchelson Nigeria Ltd 40.00 36,000,000 90 90 90 90 Gambou Paper
Mills Ltd 40.00 40,000,000 100 100 100 100 Zanders Nigeria Ltd
40.00 60,000,000 60 60 60 60 Double Diamonds Plastics Ltd 40.00
90,000,000 213 90 213 90 Nokosing Paper Mills Ltd 38.50 100,100,000
100 100 100 100 Johnsons Products Nig. Ltd 40.00 44,000,000 44 44
44 44 Beauty Base Limited 35.00 100,000,000 100 100 100 100 Kitchen
Vegetable Oils Ltd 28.75 100,625,000 100 100 100 100 Rokana
Industries Ltd 40.00 93,333,333 93 93 93 93 Saadatu Plastics Mfg.
Co. Ltd 40.00 76,000,000 76 76 76 76 Nakudu Tannery Limited 36.00
100,000,000 100 100 100 100 Delma Pharmaceutical Nig. Ltd. 40.00
23,000,000 23 23 23 23 Livestock Products & Inv. Co. 40.00
30,000,000 30 30 30 30 Alba Soap Industries Limited 40.00
33,333,333 70 70 70 70 Newland Foods Limited 40.00 2,000,000 50 50
50 50 Partnership SME Investment - - 593 566 593 566 Standard
Brothers Enterprises - 7 - 7 - Maxwell Industries Limited - 12 - 12
- Cibi Kaduna Granite(9% cum. pref. shares) - 126 50 126 50 EMMUM
Investment Company Limited - 194 140 194 140 Balance held by CBN -
- 572 572 572 572
2,753 2,454 2,753 2,454 ===== ==== ===== =====
-
35
NOTES TO THE FINANCIAL STATEMENTS (contd)
.5 In the opinion of the directors, the market value of the
unquoted investments is not lower than their cost. .6 This
represents the banks 5% holding in African Finance Corporation. The
company was incorporated in 2007 to carry on the business of
private sector led investment banking and development finance as
stated in the Memorandum of Association
9. INVESTMENT IN SUBSIDIARIES AND
ASSOCIATED COMPANIES .1 The Group The Bank
2009 2008 2009 2008 Nm Nm Nm Nm Summary Holding Principal %
activity
Union Homes Savings and Loans Plc 60.1 Mortgage financing - -
1,834 1,834 (Note 9.2) Union Trustees Limited (Note 9.2) 100.00
Trusteeship - - 5 5 Consolidated Discounts Limited 37.50 Financial
services 75 75 75 75 (Note 9.2) Union Assurance Company Limited
70.00 Insurance - - 1,448 1,448 (Note 9.2) UBN Property Company
Limited 58.65 Real estates - - 1,815 55 (Note (9.2) Union Bank UK
Plc (Note 9.2) 100.00 Banking - - 6,011 6,011 Union Registrars
Limited (Note 9.2) 80.00 Secretarial services - - 480 50 Union
Capital Markets Limited 100.00 Financial Services - - 2,620 120
(Note 9.2) Unique Venture Capital Mgt Ltd 48.00 Assets Management 9
9 9 9 (Note 9.2) --------- ------ -------- --------- 84 84 14,297
9,607 ====== ==== ===== ======
.2 Shares held in subsidiaries and associated companies by Union
Bank of Nigeria Plc:
Union Homes Savings and Loans Plc (Registered office at 153,
Ikorodu Road, Lagos)
60.1% (2008 61.2%) holding of the ordinary shares of the
company, of which (2008-30.6%) is held directly by the Bank and
(2008-15.3%) by Union Trustees Limited. William Street Trustees
Limited which is the nominee company for Union Bank of Nigeria Plc
Staff Pension Fund held (2008-15.3%).
Union Trustees Limited (Registered office at 131, Broad Street,
Lagos)
40% direct equity holding of the ordinary shares of the company,
while six directors of Union Trustees Limited
each holds 10% ordinary shares of the company as nominees of the
Bank.
Consolidated Discounts Limited (Registered Office at 38/39,
Marina, Lagos)
37.5% interest in the ordinary shares of the company.
-
36
NOTES TO THE FINANCIAL STATEMENTS (contd)
Union Assurance Company Limited (Registered office at 131, Broad
Street, Lagos)
30% direct equity holding in 7,515,098,000 ordinary shares of
50k each and 20% indirect holding through Union Homes Savings and
Loans plc. Williams Street Trustees Limited, the nominee company
for Union Bank of Nigeria Plc Staff Pension Fund held 20%.
UBN Property Company Limited (Registered office at 38/39,
Marina, Lagos)
The company has 5,626,416,051 ordinary shares of N1.00 each, of
which 32.25% is held directly by the Bank and 8.80% each by Union
Trustees Limited, Union Assurance Company Limited and Williams
Street Trustees Limited; the nominee company for Union Bank of
Nigeria Plc Staff Pension Fund.
Union Bank UK Plc (Registered office at 14-18 Copthal Avenue,
London EC2R 7BN)
100% holding of the 45,000,000 ordinary shares of $1 each and
99% direct holding in 50,000 deferred shares of 1 each and 1%
indirect holding through Williams Street Trustees Limited, the
nominee company for Union Bank of Nigeria Plc Staff Pension Fund.
Union Bank UK Plc was incorporated in October, 2004 as an
authorized United Kingdom subsidiary to carry out the business
formerly conducted by London branch of Union Bank of Nigeria
Plc.
Unique Venture Capital Management Company Limited (Registered
office at 40, Marina Lagos)
48% holding of 40,000,000 ordinary shares of N1 each. The
company commenced operations in 2004 for the purpose of equity
participation in unquoted companies under Small and Medium
Enterprises Equity Investment Scheme (SMIEIS)
Union Registrars Limited (Registered office at 2, Burma Road,
Apapa Lagos)
The company has 1,200,000,000 ordinary shares of N1 each which
is 80% held by the bank.
Union Capital Market Limited (Registered office at 4, Davies
Street, Marina Lagos)
100% holding of 800,000,000 ordinary shares of N1 each. The
company was formerly Union Stockbrokers registered to deal in
shares and stocks on all the trading floors of the Nigerian stock
exchange.
10. LOANS AND ADVANCES The Group The Bank
2009 2008 2009 2008
.1 Analyses of loans and advances by security: Nm Nm Nm Nm
Secured against real estate 190,005 95,454 170,914 79,983
Otherwise secured 205,259 116,565 200,234 113,655
Unsecured 110,078 79,890 109,058 79,329
---------- ---------- --------- ----------
Gross loans 505,342 291,909 480,206 272,967
------------ ----------- ----------- -----------
Provision for doubtful accounts
General - (3,917) (2,204) (3,725) (2,079)
Specific - (71,700) (19,083) (68,009) (15,247)
Interest in suspense (8,252) (11,663) (6,926) (10,796)
---------- --------- --------- --------
Total provisions (83,869) (32,950) (78,660) (28,122)
----------- ----------- ------------ ----------
Net loans 421,473 258,959 401,546 244,845
====== ===== ===== ======
-
37
10. Loans and advances (Contd) 10.2 Analysis of loans and
advances by quality
10.2.1. The Group
2009 2008
Net Interest Gross Net Interest in Gross
Loans suspense loans Provision loans suspense loans
Provision
Nm Nm Nm Nm Nm Nm Nm Nm
Non-performing: Substandard 22,656 - 22,656 2,266 42,800 -
42,800 4,280 Doubtful 26,442 - 26,442 13,221 4,423 - 4,423 2,212
Lost 56,213 8,252 64,465 64,465 12,591 11,663 24,254 24,254
---------- --------- ---------- ---------- ---------- -----------
----------- ------------ 105,311 8,252 113,563 79,952 59,814 11,663
71,477 30,746 Performing 391,778 - 391,778 3,917 220,432 - 220,432
2,204 ----------- ---------- ----------- ---------- ------------
------------ ------------ ----------- 497,089 8,252 505,341 83,869
280,246 11,663 291,909 32,950 ====== ====== ====== ======= =======
======= ======= ======== 10.2.2 The Bank Non-performing:
Substandard 22,075 - 22,075 2,208 41,042 - 41,042 4,104 Doubtful
25,851 - 25,851 12,925 4,208 - 4,208 2,104 Lost 52,876 6,926 59,802
59,802 9,039 10,796 19,835 19,835 ---------- ------- ----------
--------- ---------- ----------- --------- ----------- 100,802
6,926 107,728 74,935 54,289 10,796 65,085 26,043 Performing 372,478
- 372,478 3,725 207,882 - 207,882 2,079 ----------- ----------
------------ ----------- ----------- ------------ ------------
------------- 473,280 6,926 480,206 78,660 262,171 10,796 272,967
28,122 ======= ====== ======= ====== ======= ======= =======
========
-
38
NOTES TO THE FINANCIAL STATEMENTS (contd) 10. Loans and advances
(Contd) 10.3 Maturity profile of loans and advances The Group The
Bank
2009 2008 2009 2008 Nm Nm Nm Nm
Under 1 month 254,157 230,493 250,897 230,800
1 - 3 months 131,357 10,266 130,214 9,611
3 - 6 months 34,236 12,306 30,198 9,165
6 - 12 months 23,457 11,549 20,329 9,465
1 - 5 years 43,866 17,516 30,299 4,147
Over 5 years 18,269 9,779 18,269 9,779
--------- --------- -------- -------- 505,342 291,909 480,206
272,967 ====== ====== ===== ===== 10.4 Analysis of insider related
credits by performance
Aggregate amount of insider related Credits outstanding at
year-end classified Performing 1,709 2,211 1,708 2,211
Non-performing 499 125 499 125
-------- ------- -------- -------- 2,207 2,336 2,207 2,336 =====
==== ===== ====
The details of the non-performing accounts as shown above are
analysed in note 54 to the financial statements in line with the
Central Bank of Nigeria Circular BSD/1/2004.
10.5 Analysis of loans and advances by nature Overdrafts 223,520
151,243 225,905 149,937 Term loans 134,870 123,606 130,358 114,661
Commercial papers 120,779 5,218 120,779 5,184 Others 26,173 11,842
3,164 3,185 ---------- --------- --------- --------- 505,342
291,909 480,206 272,967 ====== ===== ===== ======
-
39
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank
Non- Non-
Performing performing Performing Performing
accounts accounts 2009 2008 accounts accounts 2009 2008
Nm Nm Nm Nm Nm Nm Nm Nm
10. Loans and advances (Contd) 10.6 Provisions for loans: At
beginning of year 2,204 19,083 21,287 16,636 2,079 15,247 17,326
14,074 --------- ----------- --------- ---------- ----------
---------- ---------- --------- Additional provision for the year
1,713 52,617 54,330 5,583 1,646 52,762 54,408 3,252
Provision no longer required - - - (932) - - - - ----------
----------- ---------- ---------- --------- --------- ---------
---------- Per profit and loss account (Note 40) 1,713 52,617
54,330 4,651 1,646 52,762 54,408 3,252 ---------- ----------
---------- --------- --------- --------- --------- ---------- At 31
March, 2009 3,917 71,700 75,617 21,287 3,725 68,009 71,734 17,326
Interest in suspense (Note 10.7) - 8,252 8,252 11,663 - 6,926 6,926
10,796 ---------- ---------- ---------- ---------- ---------
---------- --------- ---------- 3,917 79,952 83,869 32,950 3,725
74,935 78,660 28,122 ====== ====== ====== ====== ====== ======
====== =======
-
40
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank 2009 2008 2009 2008
10 . Loans and advances Nm Nm Nm Nm
10.7 Interest in suspense
At beginning of year 11,663 5,489 10,796 4,369 Arising during
the year 2,768 6,174 2,309 6,427 -------- ------- -------- -------
14,431 11,663 13,105 10,796 Amount written off (6,179) - (6,179) -
---------- -------- ---------- --------- At 31 March 8,252 11,663
6,926 10,796 ===== ===== ===== ===== 11. ADVANCES UNDER
FINANCE LEASES .1 Gross investments 6,407 4,795 6,407 4,501
Unearned income (109) (28) (109) (28) -------- -------- --------
-------- Net investment 6,298 4,767 6,298 4,473 Provision for
non-performing accounts: General - (61) (42) (61) (39) Specific -
(772) (582) (772) (582) -------- -------- -------- --------- At 31
March 5,465 4,143 5,465 3,852 ===== ===== ===== ===== .2 Movement
in provision for doubtful accounts
The movement on the general provision for Advances under finance
lease during the year Was as follows: - General: At beginning of
year 39 11 39 11 Charge for the year (note 40) 22 31 22 28 --------
-------- ------- ------ At 31 March 61 42 61 39 -------- --------
------- ------- Specific: At beginning 582 - 582 39 Charge for the
year (note 40) 190 582 190 582 --------- -------- -------- -------
772 582 772 621 ===== ===== ===== ===== 3 Analysis by performance
Performing 6,108 4,185 6,108 3,891 Non-performing 190 582 190 582
6,298 4,767 6,298 4,473 ===== ===== ===== ===== 4 The advance under
lease by maturity is: Within one month 3 to 6 months 2,720 2,826
2,720 2,532 6 to 12 months 1,748 1,373 1,748 1,373 over 12 months
1,830 568 1,830 568 ------- ------ ------ -------- 6,298 4,767
6,298 4,473 ===== ==== ===== =====
-
41
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank 2009 2008 2009 2008
Nm Nm Nm Nm 5. This is analyzed into current and long term
portion as follows: - Current 4,468 4,199 4,468 3,905 Long term
1,830 568 1,830 568 -------- -------- --------- ------- 6,298 4,767
6,298 4,473 ===== ===== ===== ======
12. OTHER ASSETS
Clearing (Note 12.2) 213,714 85,243 213,734 85,096 Prepaid staff
allowance 1,640 2,038 1,508 2,038 Prepayment - Rent 1,822 2,057
1,780 1,936 Prepayment - Others 5,094 12,297 3,906 11,169 Trade
debtors 1,016 1,631 - - Investment suspense 4,422 245 4,422 2,745
Bulk stationery 379 353 378 335 Accrued income 28,004 16,818 23,283
16,521 Prepaid interest 924 3,194 513 445 Frauds and losses 1,210
1,174 1,210 1,174 Deposit for shares and investments 1,643 39 - -
Statutory deposits (Note 12.3) 12 500 - - Claims controls 500 22 -
- Due from Wharf Street Limited 42 1,517 - - Other debit balances
8,139 6,828 8,568 6,098 Due from related company - - 1,942 1,942
Inter-branch 9,233 2,881 9,638 2,790 --------- --------- ----------
---------- 277,794 136,837 270,882 132,289 Provision for non-
performing accounts including fraud and losses (Note 12.1) (30,214)
(7,071) (30,116) (7,007) --------- ---------- ---------- ----------
247,580 129,766 240,766 125,282 ====== ====== ===== ======= .1
Summaries of provisions on other assets
At beginning of year 7,071 6,078 7,007 6,025 Provision no longer
required - (10) - -
7,071 6,068 7,007 6,025
Additional provision (Note 40) 23,143 1,003 23,109 982 --------
-------- -------- -------- At 31 March (Note 12) 30,214 7,071
30,116 7,007 ===== ===== ===== ===== .2 This represents receivables
from local Banks on clearing instruments. .3 Statutory deposits
represent the amount deposited by Union Assurance Company Limited
with the Central Bank of Nigeria in accordance with Section 10(3)
of the Insurance Act, 2003.
-
42
NOTES TO THE FINANCIAL STATEMENTS (contd)
The Group The Bank 2009 2008 2009 2008
Nm Nm Nm Nm 13. EQUIPMENT ON LEASE
Cost: At 1 April 2,049 2,049 1,991 1,991
Additions 181 - - -
Disposals - - - - ------- ------- ------- ------- At 31 March
2,230 2,049 1,991 1,991 ------- ------- ------- -------
Depreciation:
At 1 April 2,049 1912 1,991 1,878
Additions - - - -
Charge for the year 20 137 - 113
On disposals - - - - ------- ------- -------- -------- At 31
March 2,069 2,049 1,991 1,991 ------- ------- -------- --------
Net book value:
At 31 March, 2009 161 - - - ==== ==== ===== ==== At 31 March,
2008 - - - - ===== ===== ===== =====
-
43
NOTES TO THE FINANCIAL STATEMENTS (contd) 14. FIXED ASSETS .1
The Group Plant,
machinery,
Land and computer & Motor Furniture
buildings equipment vehicles and fittings Total
Summary: N'm N'm N'm N'm N'm
Cost/valuation:
At 1 April 2008 24,793 16,403 4,442 4,252 49,890
Additions 3,289 2,392 1,049 562 7,292
Revaluation surplus 24,506 - - - 24,506
Disposals - (28) (220) (4) (252)
-------- --------- -------- --------- --------- At 31 March 2009
52,588 18,767 5,271 4,810 81,436 -------- --------- ---------
--------- ---------
Depreciation: At 1 April 2008 4,894 8,901 3,533 3,094 20,422
C