Retail lender, Unity Bank Plc grew its deposits to N333.38 billion,
representing a marginal increase of 2% compared to N327.42 billion
recorded in H1’22 in its Half-Year unaudited financial statement
submitted to the Nigeria Exchange Group Limited.
The growth in
deposits demonstrates incremental gains by the lender from its
commitment to deepening its retail footprint through a well-diversified
banking product suites that caters to different segments of the retail
market.
Other highlights of the unaudited financial statement include
gross income and total assets which recorded N27.5 billion as against
N27.4 billion and N512.1 billion from N510.1 billion respectively within
the period under review. The net loans portfolio reduced significantly
by 31% to N198.6Billion as at 30 June 2023 from N289.4Billion as at 31st
December 2022. The Bank’s NPL Ratio remained moderate at below 3% while
liquidity ratio stood strong at over 45%.
However, the Bank’s profit
for the period was impacted by foreign exchange revaluation on the back
of Nigeria’s recent FX liberalization policy, resulting in a slide in
our position.
Notwithstanding, the retail lender grew its FX trading
income significantly by 17% to N239.8 million from N204.4 million in the
corresponding period of 2022, underscoring the Bank’s strategic focus
on diversifying and growing its earnings portfolio.
Similarly, fees
and income commission also witnessed a 10% growth to N3.5 billion from
N3.2 billion compared to the corresponding period of 2022, on the
strength of the growing popularity of its digital banking platforms and
customers’ acquisition in the retail space.
Commenting on the
financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs.
Tomi Somefun noted that the significant disruptions which characterized
the operating environment has impacted the positions of the Bank to the
extent that we have constraints in income generation on the back of
revaluation of the bank’s net foreign liabilities occasioned by the
Naira devaluation during the period.
Mrs. Tomi stated: “In the light
of the prevailing FX revaluation in the financial system, what we have
is a market-driven impact which is adjustable envisaged from the
positive economic outcomes of the government policies in the near term.
Be that as it may, the negative shareholders’ fund has improved
considerably through the injection of N135billion which moderated the
negative shareholders’ fund from (-ve) N275Billion in December 2022
financial year-end to (-ve) N178Billion as at the end of June 2023,
after absorbing the FX revaluation loss suffered in Q2/2023. We are
however, focused with clear-cut plans to close out on our
recapitalization programme very soon to enable us do business as
expected in the fast-growing markets in Nigeria”
She further stated
that while we remain optimistic that the government’s policy initiatives
will lead to cause correction in the market, the Bank has accelerated
measures to ramp up asset creation and liability generation in the short
and medium term. The Bank is aggressively driving its retail growth in
every segment of the market, expanding strategic partnerships; and
growing commercial banking business to develop new and sustainable
income lines for the Bank as well as pay sufficient attention to
fast-paced process automation, cost and resource efficiency, targeted
value chain relationships, and product marketing to enhance value
creation in the market.
Analysts are of the view that notwithstanding
the market shocks currently being experienced, the Bank is still on
course given the resilience it has demonstrated over time.
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