Union Bank Plc has confirmed it sold its UK subsidiary, Union Bank UK for a cash consideration of N8 billion only.
This is according to the information contained in its financial statements for the period ending December 2022.
NewsBeatng reports that the bank sold the subsidiary to local competitor, Fidelity Bank in May 2022 in a transaction that was initially reported as an undisclosed amount.
A cursory view of the transaction details shows Union Bank (group) posted a capital loss on the sale of the asset as the carrying cost (represented by its net assets) of its UK subsidiary on its books was N16.1 billion.
However, on the balance sheet of Union Bank UK, it reported a total asset of N50.89 billion and a net asset of N16.1 billion as of the end of May 2022. Loans advances and customer deposits as of that period were also N11.1 billion and N23.8 billion respectively.
Despite the sale, Union Bank UK still reported a loss from discontinued operations of N1 billion down from a loss of N2.45 billion as of 2011.
