Unity Bank Announces N333.38bn Deposits from Customers

Kayode Tokede

Unity Bank Plc has announced N333.38billion deposits from customers as of June 30, 2023, representing an increase of two per cent from N327.42 billion recorded in full year ended December 31, 2022.

The unaudited financial statement submitted to the Nigeria Exchange Limited (NGX) showed growth in deposits from customers that demonstrated 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.

The net loans portfolio reduced significantly by 31per cent to N198.6billion as at June 30, 2023 from N289.4Billion in 2022. The Bank’s Non-Performing Loan (NPL) ratio remained moderate at below three per cent, while liquidity ratio stood strong at over 45per cent.

The lender closed June 30, 2023 with N509.99billion total assets as against N510.14billion reported in 2022 financial year.

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.

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 17per cent 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 10per cent 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, “the bank said in a statement.

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.

She 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.