Unity Bank grows earnings to N27.5bn in Q2 2023
Unity Bank Plc has announced its financial results for the second quarter ended June 30, 2023 reporting a 2 percent growth in deposits to N333.38 billion, as against N327.42 billion recorded in the similar period of 2022.
The unaudited financial statement submitted to the Nigeria Exchange Group Limited also revealed that the retail lender’s gross income at N27.5 billion as against N27.4 billion, while total assets rose to N512.1 billion from N510.1 billion within the period under review.
Net loans portfolio declined significantly by 31percent 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 percent while liquidity ratio stood strong at over 45 percent.
The impact of foreign exchange revaluation due to the implementation of the Central Bank of Nigeria foreign exchange unification policy was visible as the bank reported a revaluation loss of N35 billion within the period.
However, the bank’s forex trading income during the period grew by 17 percent to N239.8 million from N204.4 million in the corresponding period of 2022, underscoring strategic focus on diversifying and growing 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. Somefun stated, “In the light of the prevailing forex 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 N135 billion which moderated the negative shareholders’ fund from (-ve) N275 billion in December 2022 financial year-end to (-ve) N178 billion as at the end of June 2023, after absorbing the forex 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 to 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.”