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Unity Bank grows gross earnings to N38bn

Lagos, Nov. 4, 2023: Unity Bank Plc has recorded gross earnings of N38 billion for the nine-month period ended Sept. 30, 2023.

The bank said this in its unaudited results released to the Nigerian Exchange Group (NGX) Ltd. in Lagos.

The bank’s customer deposits appreciated by five per cent to N344.4 billion within the period, indicating business growth and customer confidence.

A further  review of the unaudited showed that the bank continued to maintain its expansionary and customer-centric model with total loans and advances rising to N222.8 billion.

Interest and similar income stood at N33 billion, which underscores the bank’s strategic focus to reinvigorate and sustain asset creation that will deliver returns to shareholders.

“Other key highlights of the nine-month financials include the total assets which stood at N423.4 billion; net fee and income commission, N4.4 billion within the period.

“However, the recent foreign exchange regulation impacted the bank’s bottom line, which can be reversed as the naira appreciates,” said the bank.

Commenting on the result, Mrs Tomi Somefun, Managing Director/Chief Executive Officer of the bank, said the bank was focusing on its efforts to recapitalise the institution, aggressively drive asset creation, innovate with products to compete favourably in new markets.

Somefun added that the bank had relentlessly driven the pursuit of digital banking innovation in order to shake off and completely reverse negative positions.

She said despite the tough operating environment, the deposit position continues to witness steady appreciation, which supports the business as the bank drives initiatives to ramp up transactions as part of its strategy for the short and medium term.

“This also means that the bank enjoys market confidence, which will enable the institution to thrive better in the months ahead with increased business conversion, profitability and growth needed to achieve sustainable returns.

“The bank is seeing encouraging uptake in its digital banking services and with expansion envisaged in the pursuit of enhanced retail franchise, fintech partnership, consumer banking and other innovative retail loans as well as diversification of portfolio investment, the outlook remains one of optimism,” she said.

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Union Bank receives Euromoney market rankings in 5 categories

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Union Bank of Nigeria (UBN) Plc has received high ratings in five categories at the 2022 Euromoney market rankings.

Mrs Ogochukwu Ekezie-Ekaidem, the Chief Brand and Marketing Officer, UBN, made the announcement in a statement on Tuesday in Lagos .

The statement said that the bank was recognised as ‘Highly Regarded’ in Corporate Banking, Corporate and Social Responsibility (CSR) and Environmental, Social and Governance (ESG) and classified as ‘Notable’ in SME Banking and Digital Solutions.

“We are pleased to be recognised by Euromoney as ‘Highly Regarded’ and ‘Notable’ in these five categories.

“This recognition validates the success of our business strategy as we are a digital-led bank with a culture that embeds sustainability across all our operations using a unique triple-pillar model of Citizenship, Sustainability, and Innovation.

“We remain committed to doing our part to contribute to the environmental, socioeconomic, and financial development of our nation and continent while providing our customers with simpler, smarter solutions,” it said.

Euromoney Market Leaders is an independent global assessment of the leading financial service providers across key categories in each market.

The ‘Market Leaders’ rankings take multiple sources of data including qualitative and quantitative to build a robust and objective picture of industry leaders.

The statement added that these recognitions in five categories reaffirmed the bank’s strong position in the Nigerian banking sector characterised by improved business products and services.

It said the CSR and ESG ‘Highly Regarded’ ranking demonstrated Union Bank’s proven track record and commitment to being a responsible organisation.

It named Initiatives such as UnionCares and the Employee Volunteer programme, as examples of the positive contributions made by the bank, beyond giving back to the communities it serves.

It said that the bank was also a leading advocate for sustainability.

“The bank embeds sustainable practises in all its operations and has over 400 solar-powered branches and Automated Teller Machines (ATMs) to buttress its goal of embracing clean energy for reduced carbon footprint.

“Union Bank was also ranked as ‘Notable’ in recognition of the significant advancements the bank has made in digital solutions.

” In addition to already-existing online channels/tools, and a variety of advanced digital payment methods designed to provide seamless and secure banking experience, Union Bank recently launched SpaceNXT.

“SpaceNXT is a fit for purpose co-creation technology hub for visionaries, techpreneurs and innovators,” it said.

According to the statement, the hub reflects Union Bank’s focus on developing niche technological solutions.

It said, “another area where Union Bank ranked ‘Notable’ was SME banking, in recognition of continued support for small businesses in Nigeria.

“This is in addition to the bank’s recent recognition by Global Finance as the Best Bank for SMEs in Nigeria.”

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PAC Capital raises $300m to support acquisition of Union Bank

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PAC Capital Limited, the investment banking arm of PanAfrican Capital Holdings, successfully raised $300 million funding from the African Export-Import Bank (“Afreximbank”).

The money was raised on behalf of Titan Trust Bank (“TTB”) to support the acquisition of majority stake in Union Bank Plc, Nigeria (“UBN”).

PAC Capital’s Managing Director, Humphrey Oriakhi, made this known in a statement shortly after the deal was sealed.

Humphrey said “Specifically, the arranged funding completed the funds required for the acquisition.”

PAC Capital Limited is the Investment Banking and Advisory arm of PanAfricanCapital Holdings, with an excellent track record of successful fundraising and financial advisory services across Aviation, Financial Services, Telecommunications, Power & Energy, Oil & Gas, Agro-Allied and Hospitality sectors in Nigeria and beyond.

“PAC Capital Limited played a vital role in arranging part of the acquisition consideration for this landmark transaction of TTB acquiring majority stake in UBN.

We sincerely thank PAC Capital and Afreximbank for supporting the deal with the highest professionalism and efficiency,” said Mudassir Amray, the former MD of Titan Trust Bank and now MD/CEO of Union Bank.

“The financing was closed in a record timeline,” Mudassir added.

It is expected that this acquisition will enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in Nigeria’s financial services industry and broader financial stability.

The development impact of the acquisition as stated by Afreximbank is immense as TTB plans to leverage the merged entity to provide financing of about US$3 Billion over the medium term of which over US$600 Million will directly support intra-regional trade finance.

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Union Bank gone  

Union Bank Plc on Thursday said it had completed its core investors’ sale of a majority shareholding to Titan Trust Bank Ltd., a subsidiary of TGI Group.  

In a statement signed by Somuyiwa Sonubi, the bank’s company Secretary, made available to the Nigerian Exchange Ltd., in Lagos, the bank said there was a board change that resulted to the resignation of directors.  

This, it added, subsequently led to retirement of the directors from its Board, while others new ones were appointed.  

The statement said, “Union Bank hereby notifies Nigerian Exchange Limited (NGX), the Securities & Exchange Commission and members of the public of the completion of the transaction under the Share Sale and Purchase Agreement (SSPA).”  

It said it effectively transferred 93.41per cent of Union Bank’s issued share capital to TTB.  

It added that the transaction followed Union Bank’s notification in December 2021 of the execution of the SSPA between the bank’s majority shareholders – Union Global Partners Ltd., Atlas Mara Ltd, et al. – and Titan Trust Bank Ltd. (TTB).  

“Consequently, in compliance with NGX, Rulebook and the Amendments to the Listing Rules, Union Bank hereby notifies NGX, our esteemed stakeholders and the investing public of the following.  

“Union Bank, hereby, notifies NGX that with the completion of the transaction, TGI Group, parent of TTB, now becomes the majority shareholder and core investor in Union Bank.  

“Union Bank, hereby, notifies NGX of the completion of the divestment of the Bank’s entire shareholding interest (direct and indirect) in its subsidiary, Union Bank (UK) Plc (“UBUK”), to all the shareholders in the Bank’s records as of March 4, pro rata to their existing shareholding interests in the Bank.  

“Consequently, UBUK is not included in the transaction with Titan Trust Bank,” said the statement.  

The bank also notified the NGX of retirement of directors, the Chief Executive Officer, Mr Emeka Okonkwo, with effective from June 2.  

Other directors that retired included: Mrs Beatrice Hamza Bassey, Chairman/Non-Executive Director; Mrs Obafunke Alade-Adeyefa, Independent Non-Executive Director; Mr Richard Burrett, Non-Executive Director and Mr Ian Clyne, Non-Executive Director.  

Others are: Mr Kenroy Dowers, Non-Executive Director; Mr Paul Kokoricha, Non-Executive Director; Mr Taimoor Labib, Non-Executive Director; Mr Mark Patterson, Non-Executive Director; and Mr Emeka Ogbechie Non-Executive Director.  

The bank also appointed Mr Mudassir Amray as the Chief Executive Officer, and Mr Farouk Mohammed Gumel as the bank’s Chairman effective June 2.  

According to the bank, Amray is a seasoned banker with over 25 years in senior management roles.  

Prior to being appointed the Chief Executive Officer for Union Bank, Amray led the establishment of Titan Trust Bank and subsequently became the Bank’s pioneer CEO in October 2019.  

He holds an MBA from the University of Santo Tomas and a Bachelor of Commerce from National College, University of Karachi.  

Aldo, Gumel is Group Executive Director for TGI Group. He is also the Chairman, Board of Directors at Wacot Rice Ltd., a subsidiary of TGI Group, and Non, Executive Chairman at the Nigeria Sovereign Investment Authority (NSIA).  

Prior to joining TGI, Gumel was a Partner at PwC and Head of the West African Advisory/Consulting business, covering Nigeria, Ghana, Liberia, Sierra Leone, and Angola.  

Gumel holds a BSc. in Materials Technology (Leather) from the University of Northampton and an MSc, in Clean Technology from Newcastle University.  

He is also a chartered accountant with the Institute of Chartered Accountants of Nigeria and a Fellow of the Institute of Chartered Accountants in England and Wales.  

Other new appointments to the board include: Mr Andrew Ojei, Non-Executive Director; Alhaji Abubakar Mohammed, Non-Executive Director; and Mr Lawrence Mackombo, Non-Executive Director.  

Commenting on behalf of the outgoing Directors, erstwhile Chairman of the Board, Mrs Bassey, said the bank reached a significant milestone with the completion of the transaction between its core shareholders and Titan Trust Bank.  

“As is normal for transactions such as this, the current board and CEO Mr Emeka Okonkwo retired and handed over the reins of the bank to a new Board and to Mr Mudassir Amray as CEO.  

“The entire Board congratulates the parties on this landmark transaction.  

It has been a privilege and honor to have chaired and served on the Board that oversaw the preservation and transformation of one of Nigeria’s most iconic institutions.  

“I extend my heartfelt gratitude to Mr Okonkwo, the Management team and entire Staff of the bank as well as the retiring directors for their diligent and committed service over the years.  

“I am also grateful for the trust that our minority investors placed in us for managing and running the bank. 

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Unity Bank partners with RIFAN to unveil mega rice pyramid

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Unity Bank Plc has partnered with Nigerian rice farmers under the aegis of Rice Farmers Association of Nigeria (RIFAN) to unveil a mega rice pyramid at the National Rice Festival.

The Managing Director/Chief Executive Officer, Unity Bank, Mrs Tomi Somefun, at the festival on Tuesday in Abuja commended rice farmers for the collaboration in the implementation of the Anchor Borrowers’ Programme (ABP).

Somefun said that the bank would continue to support the farmers and ensure that more smallholder farmers get the requisite financial support to boost rice production.

She said: “Our strategic partnership with RIFAN started in 2018, when we financed about 273,000 smallholder farmers.

“This was the largest single-ticket transaction in that year. This financing cut across 33 states of the federation including the Federal Capital Territory (FCT).

“In 2019, the bank increased the tally by financing another 146,810 smallholder farmers for the wet and dry season farming.

“Additional funding was granted to finance additional 221,450 smallholder farmers of the association across the 32 states of the federation including FCT for the wet season and additional 300,000 hectares was financed in 16 states for the 2020 dry season cropping season.

“As of March 2021, the bank has financed no fewer than 190,000 smallholder rice farmers across 35 states including the FCT,” she said.

Somefun said: “The rice pyramids we see here today is an example of the resilience of the farmers and should be replicated in all states with a focus on the crop they have a competitive advantage.

“As we gear the programme toward deepening its penetration to reach more farmers, we encourage all beneficiaries of the intervention programme to always utilise the inputs judiciously,” she said.

Somefun noted that such move will make them to key into Federal Government’s goal of attaining food sufficiency, diversification of the economy from oil, job creation for the teeming youth and poverty reduction.

“We remain optimistic that RIFAN under the able leadership of the National President, Aminu Goronyo, will continue to engage its members to drive higher performance under the ABP.

“Through the strategic initiative of the ABP, Nigeria has made incredible gains in rice production over the past six years raising production to significant levels,” she noted.

According to her, official reports show that from an average yield of 1.8 metric tonnes per hectare in the pre-ABP era, the initiative has increased the country’s average yield per hectare for rice paddy and maize to about five metric tonnes per hectare.

She added that the average capacity utilisation per annum of domestic integrated rice mills had jumped to 90 per cent, from the 30 per cent that was the case in the era preceding the advent of the ABP.

Somefun said that the programme had created an estimated 12.3 million direct and indirect jobs across the different value chains and food belts of the country.

Statistics show that there has been a significant reduction in the country’s rice import bill, from a monstrous 1.05 billion dollars prior to November 2015, to the current figure of 18.50 million dollars annually.

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Titan Trust Bank acquires 89.39% stake in Union Bank

Union Bank of Nigeria (UBN) Plc on Thursday announced a proposed divestment of majority shareholding interest in the bank to Titan Trust Bank Ltd.

The UBN Company Secretary, Somuyiwa Sonubi, said this a statement posted on the Nigerian Exchange Ltd (NGX) website tilted: “Proposed Divestment of Majority Shareholding Interest in Union Bank of Nigeria Plc.”

The statement said the board of UBN had received a notification from Union Global Partners Ltd. (UGPL), the holder of majority shareholding in Union Bank of the execution of a Share Sale and Purchase Agreement.

It said the agreement was between UGPL, certain other existing shareholders of Union Bank (as sellers) and Titan Trust Bank Ltd. (as Purchaser) for the sale of an aggregate 89.39 per cent of the issued share capital of Union Bank held by the Sellers, to the Purchaser.

The statement said the completion of the transaction was subject to obtaining applicable regulatory approvals and the fulfilment of certain conditions precedent.

Commenting on the transaction: Chair, Union Bank, Mrs Beatrice Hamza Bassey, congratulated all the parties involved in the transaction.

“On behalf of the Board, we congratulate all the parties involved in reaching this phase of the transaction and the board looks forward to supporting the next steps to ensure a seamless completion of the process following regulatory approvals.

“We are grateful to our current investors whose significant and consequential investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions.

“Today, the bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent year on year profitability.

“This is a solid foundation for our incoming investors to build on as we move into a new era for the Bank,” Bassey said.

Also commenting, Chair, Titan Trust Bank, Mr Tunde Lemo, said the transaction made a key step for Titan Trust.

“The board of Titan Trust Bank and our key stakeholders are delighted as this transaction marks a key step for Titan Trust in its strategic growth journey and propels the institution to the next level in the Nigerian banking sector.

“The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model, which promises to enhance the product and service offering for our combined valued customers,” Lemo said.

To the Chief Executive Officer, Union Bank, Mr Emeka Okonkwo, the transaction marks a significant milestone in the journey of the bank.

“This transaction marks a significant milestone in the journey of our 104-year old bank.

“Whilst thanking our current investors for their unwavering commitment to the bank over the years, we welcome our new core investor, TTB.

“We recognise the strategic fit between the two institutions and expect that this deal will deliver the best outcome for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank,” Okonkwo said.

The Chief Executive Officer, Titan Trust Bank, Mr Mudassir Amray, said:

“After completing over two years of operations with aggressive organic growth, we are excited to have an opportunity for a significant leap forward in market share.

“UBN’s widespread presence, state of the art technology platform, quality staff and strong brand loyalty fits well with our synchronised modular strategy.

“We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders,” Amry said.

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Union Bank confirms Beatrice Bassey as board Chair

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The Central Bank of Nigeria has confirmed the appointment of Mrs Beatrice Bassey, as the substantive Chair of Union Bank of Nigeria (UBN) Plc.

UBN said this in a statement in Lagos that Bassey joined the bank’s board in 2015 as a non-Executive Director.

It said that she was appointed the acting Board Chairman in Dec. 2019, after the demise of Mr Cyril Odu, the immediate past Chairman.

Commenting on her appointment, Bassey said: “I am delighted to lead the board as we drive Union Bank’s growth strategy and entrench its position as a leading financial institution in Nigeria.

“As we move ahead, our focus remains to deliver greater value to our customers, shareholders, and all stakeholders,” she said.

Bassey is a reputable lawyer with extensive experience in corporate governance and financial institutions.

Currently, she is the General Counsel and Chief Compliance Officer at Atlas Mara Ltd., a publicly listed financial services company that operates banks in various parts of Africa.

“A lawyer of great repute with extensive experience in corporate governance and financial institutions, she is an authority in compliance and represents clients globally in compliance and anti-corruption matters.

“In addition to overseeing compliance, corporate governance and legal affairs across all its subsidiaries, Bassey has led Atlas Mara’s acquisition and integration of the nine banks it has acquired to date as well as several strategic initiatives.

“Through her current service on the boards and board committees of public companies, she has garnered in-depth knowledge of corporate governance best practices and trends.

“Prior to the afore-mentioned, Bassey was a Senior Partner in the New York offices of Hughes Hubbard & Reed LLP, a premier Wall Street law firm where she was a member the Executive Committee,” the statement said.

Bassey holds an LL. B in Law from University of Maiduguri, a BL in Law from the Nigerian Law School and an LL.M from Harvard Law School.

She was called to the Nigerian Bar in 1995 and the New York Bar in 1999.

She is a fellow of the prestigious David Rockefeller Fellows Programme of the Partnership for New York City.