Union Bank of Nigeria Plc
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Union Bank of Nigeria Plc Annual Report 31 December 2019 Union Bank of Nigeria Plc Annual Report 31 December 2019 Table of Contents Page Corporate information 2 Management Team 4 Corporate governance 5 Directors’ report 25 Statement of Directors’ responsibilities 46 Report of the Statutory Audit Committee 47 Independent Auditor’s report 48 Consolidated and separate statements of profit or loss and other comprehensive income 56 Consolidated and separate statements of financial position 58 Consolidated and separate statements of changes in equity 59 Consolidated and separate statements of cash flow 63 Notes to the consolidated Financial Statements 65 Other information Value Added Statement 180 Financial summary 181 1 Union Bank of Nigeria Plc Annual Report 31 December 2019 CORPORATE INFORMATION Directors Cyril Odu - Chairman1 Emeka Emuwa - Chief Executive Officer Kandolo Kasongo - Executive Director/Chief Risk Officer/Compliance Executive Emeka Okonkwo - Executive Director Adekunle Sonola - Executive Director Nath Ude - Executive Director Obafunke Alade-Adeyefa(Mrs) - Independent Non-Executive Director John Botts - Non-Executive Director2 Richard Burrett - Non-Executive Director Beatrice Hamza Bassey (Mrs) - Non-Executive Director Ian Clyne - Non-Executive Director Kenroy Dowers - Non-Executive Director3 Furera Isma Jumare (Mrs) - Independent Non-Executive Director Richard Kramer OFR - Non-Executive Director4 Taimoor Labib - Non-Executive Director Mark Patterson - Non-Executive Director5 1 Demise-17 September 2019 2Retired with effect from 19 March 2019 3 Appointed with effect from 21 October 2019 4 Retired with effect from 16 September 2019 5 Appointed with effect from 17 April 2019 2 Union Bank of Nigeria Plc Annual Report 31 December 2019 Company Secretary Somuyiwa Adedeji Sonubi FRC/2013/NBA/00000002061 Registered office Union Bank of Nigeria Plc Stallion Plaza 36 Marina Lagos Auditor KPMG Professional Services KPMG Tower Bishop Aboyade Cole Street Victoria Island Lagos Registrar & Transfer Office Greenwich Registrars and Data Solutions Limited 274 Murtala Muhammed Way Yaba Lagos Board Appraiser DCSL Corporate Services Limited 235, Ikorodu Road Ilupeju Lagos 3 Union Bank of Nigeria Plc Annual Report 31 December 2019 Management Team 1 Emeka Emuwa Chief Executive Officer 2 Nath Ude Head, Services and Technology 3 Kandolo Kasongo Chief Risk Officer and Compliance Executive 4 Emeka Okonkwo Head, Corporate Banking and Treasury 5 Adekunle Sonola Head, Commercial Banking 6 Omolola Cardoso(Mrs) Head, Retail Banking/Chief Digital and Innovation Officer 7 Miyen Swomen Head, Human Resources 8 Lateef Dabiri Chief Compliance Officer (CIO) 9 Ikechukwuka Emerole Head, Treasury 10 Joseph Mbulu Chief Financial Officer (CFO) 11 Rosemary David-Etim Regional Business Executive, South 12 Tetem Feyi-Waboso Chief Information Officer 13 Olusola Olubi Head, Specialized Markets, Corporate Banking 14 Morenike Olabisi Head, CBG, FMCG 15 Fatai Baruwa Head, Sales and Distribution, Retail Area III 16 Abigail Duopama-Obomanu Head, Internal Control 17 Segun Lamidi Head, Operations 18 Ogochukwu Ekezie-Ekaidem Head, Corporate Communications & Marketing 19 Chidi Ileka Head, Transformation, LEAP 20 Ali Kadiri Head, General Markets, Corporate Bank 21 Abolade Jegede Regional Business Executive, West 22 Olajumoke Sherifat Odulaja Chief Credit Officer 23 Helen Brume Omoleigho Head, Oil and Gas 24 Garba Kabir Bakori Chief Audit Executive 25 Ibosiola Akinwole Oluwayomi Chief Data and Analytics Officer 26 George Imoh Udoh Group Head, Commercial 27 Adebanji Jimoh Head, Sales and Distribution, Retail Area II 28 Gloria Omereonye Sector Executive, Commercial Banking 29 Oluwagbenga Adeoye Head, Financial Control 30 Dupe Ogunbiyi Head, Services 31 Paul Aseme Head, SME Banking Head, Operational Risk Mgt./Chief Information Security 32 Oghenefovie Oyawiri Officer 33 Mobolade Ojeahere Head, Transaction Banking 34 Bulus Ayuba Head, Branch Services 35 Sesan Sobowale Head, Legal 36 Kenneth Ufere Head, Business Support and Recovery 37 Olumuyiwa Theophilus Head, IT For Business (ITFB) 38 Taiwo Adeneye Head Central Processing Centre 39 Somuyiwa Sonubi Company Secretary 40 David Forster Managing Director, Union Bank UK Plc 4 Union Bank of Nigeria Plc Annual Report 31 December 2019 CORPORATE GOVERNANCE Corporate Governance practices in Union Bank of Nigeria Plc (“UBN” or “the Bank”) are as codified in the Central Bank of Nigeria’s (“CBN”) Code of Corporate Governance of 2014, the Securities and Exchange Commission (“SEC”) Code of Corporate Governance of 2011, the Banks and Other Financial Institutions Act of 1991 (as amended) and other relevant statutes. All these provide guidance for the governance of the Bank, compliance with regulatory requirements and form the basis of the core values upon which the Bank is run. These codes and statutes are geared towards ensuring the accountability of the Board of Directors (“the Board”) and Management to the stakeholders of the Bank in particular and emphasize the need to meet and address the interests of a range of stakeholders, to promote the long- term sustainability of the Bank. UBN is committed to the best corporate governance practices and believes that adherence and commitment to high governance principles and standards is the panacea for effective control and management of the Bank. The principle of good corporate governance practices remains one of our core values and an important ingredient in creating, protecting, promoting and sustaining shareholders’ interests, rights and values, as well as delivering excellent service to our customers. The Bank is committed to the highest ethical standards and transparency in the conduct of its business. In compliance with the requirements of the CBN, the Bank undertakes internal reviews of its compliance with defined corporate governance practices and submits reports on the Bank’s compliance status to the CBN. Also, an annual board appraisal review is conducted by an independent consultant appointed by the Bank, whose report is submitted to the CBN and presented to shareholders at the Annual General Meeting (AGM) of the Bank, in compliance with the provisions of the CBN Code of Corporate Governance. Securities Trading Policy To further demonstrate its commitment to transparency and ensure compliance with regulatory requirements, the Bank has developed a Securities Trading Policy in line with the Codes of Corporate Governance of the CBN and SEC respectively, and Section 14 of the Amendment to the Listings Rules of the Nigerian Stock Exchange. The Policy sets out the process by which directors, staff, shareholders, key management personnel, third party service providers or any other connected persons who have direct or indirect access to the Bank’s insider information can deal in the Bank’s securities. It also prohibits the trading of the Bank’s securities during ‘close’ periods. The policy is designed to ensure that its compliance is monitored on an ongoing basis. 5 Union Bank of Nigeria Plc Annual Report 31 December 2019 Complaints’ Management Policy The Bank’s Complaints’ Management Policy has been prepared pursuant to the Rules Relating to the Complaints’ Management Framework of the Nigerian Capital Market issued by the SEC on 16th February 2015. The Policy applies strictly to the Bank’s shareholders and provides an avenue for them to make complaints regarding their shareholding and relationship with the Bank. The Complaints’ Management Policy aims to promote and safeguard the interest of the Bank’s shareholders and investors, with its primary objective of ensuring that the activities of the board and management are in the best interest of the Bank and its shareholders. The policy, jointly implemented by the Registrar and the Company Secretary, sets out the process and channels through which shareholders can submit their complaints, and the process for managing these complaints. Whistle Blowing Procedures In line with the Bank’s commitment to instill the best corporate governance practices, the Bank’s anonymous whistle-blowing channel is independently managed by Deloitte. This is to uphold commitment to the highest standards of openness, integrity, accountability and ethical standards. To this end, there is a toll-free hotline, a dedicated e-mail address, web portal and a Mobile App on Android and iOS devices. The hotline number is 08008476337 and the email address is tip- [email protected]. There is a direct link to the web portal https://tip-offs.deloitte.com.ng on the Bank’s website and intranet to enable stakeholders, including members of staff, report all suspected breaches of the Bank’s Code of Corporate Governance. Remuneration Policy for Directors and Senior Management The Bank’s Remuneration Policy for directors and senior management is geared towards attracting, retaining and motivating the best talent and enables the Bank achieve its financial, strategic and operational objectives. The policy sets out amongst others, the structure and components of the remuneration packages for Executive and Non-Executive Directors, and ensures that the remuneration packages comply with the CBN and SEC codes of corporate governance. In line with the provisions of the extant regulations and codes of corporate governance, the remuneration of directors and senior management is set at levels, which are fair and competitive, and take into consideration the economic realities in the financial services sector and the Bank’s financial performance. 6 Union Bank of Nigeria Plc Annual Report 31 December