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Unity Bank posts impressive performance

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Unity Bank Plc recorded sustained improved performance in its first quarter of 2023.

In its unaudited financials for first quarter 2023, the bank stated that it recorded a Profit After Tax of N1.04 billion, a 21 per cent growth against N869.2 million it earned in the corresponding period of 2022.

Its gross earnings for the quarter was put at N15.9 billion, a 17 per cent growth from N13.6 billion generated in the corresponding period of 2022.

Mrs Tomi Somefun, Managing Director/Chief Executive Officer, Unity Bank Plc, said that the bank would remain laser-focused on its strategic choices and key growth drivers to push all the indices and elevate growth to double-digit territory.

“The performance posted for Q1’23 in terms of the PBT, gross earnings, and other key indicators are strong reinforcement of adequate measures being adopted and a testament of our resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the course of the financial year.

“Since late 2022, the bank has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding.

“As part of our transformation journey, we will double down on these investments in the coming months in order to achieve our aspirations of significantly reducing customer pain points and simplifying customer experience.

“We will increase the rate of customer acquisition; expand the frontiers of partnerships; and ultimately develop new and sustainable income lines for the Bank,” she said.

Somefun said that the bank would further give attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and brand visibility as it expands the range of products and services to meet the evolving needs of its esteemed customers.

She said also that the bank’s focus on building back momentum had continue to reflect in the key performance indicators despite economic headwinds and volatilities that characterised the operating environment in the 2022 financial year.

“There are highs and lows as we look at the gross earnings, with 13.7 per cent growth, increase in liquid assets by 7.5 per cent and deposits recording moderate growth of 1.6 per cent, while maintaining steady growth in profitability.

“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business”, she said.

A major highlight of the financial year ended Dec 2022, is the growth in total comprehensive income, which rose by 262.1per cent to N1.2 billion from N744 million in the corresponding period of 2021.

The bank grew Profit Before Tax (PBT) by N1.1 billion, while Profit After Tax stood at N941.4 million.

With the loan book sustaining an expansion by 7.5 per cent to N289.4 billion from N269.3 billion within the period under review, the interest and similar income consequently witnessed significant growth rising 7.5 per cent to close at N48.9 billion compared to N43.2 billion in the corresponding period of 2021.

Similarly, income from fees and commissions recorded significant growth, rising by 25.7per cent to N7.68 billion from N6.1 billion within the period under review.

More so, deposits from customers saw marginal growth, increasing by 1.6 per cent to N327.4 billion from N322.2 billion in the corresponding period of 2021 as the bank pushes for deeper penetration of its retail footprint with the rollout of products targeting different segments of the market.

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Unity Bank declares N2.2bn profit

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Unity Bank Plc has declared a N2.2 billion profit for the nine-month period ended Sept. 30.

The company stated this in its third quarter result released on Friday in Lagos.

The profit represented a 17 per cent growth in gross earnings to N42.2 billion for the same period, as against N36.2 billion in the corresponding period of 2021.

The company said that the increase could be attributed to new products that were focused on deep penetration and driving volume in the retail market space.

Also, a review of Agric-focused lender’s unaudited results released to Nigerian Exchange Ltd., (NGX), showed the bank’s profit before tax rose by five per cent to close at N2.206 billion.

The bank also recorded an equal marginal growth in its profit after tax, which increased to N2.03 billion, representing a five per cent rise from N1.9 billion recorded in the same period of 2021.

Similarly, total loans and advances grew to N284.2 billion, representing a six per cent spurt from the N269.3 billion recorded in the corresponding period of 2021.

Other key highlights of the nine-month financials included customer deposits of N334.7 billion which represented a four per cent increase from N322.3 billion in the corresponding period.

The position underscored the increasing uptake of the market for the Bank’s products innovation, and mass-market-oriented retail focus that continued to boil wide acceptance across various segments of the mass market.

The lender’s performance came on the heels of a fragile recovery from the global pandemic buffeted by economic headwinds including rising inflationary trends, interest rate hikes, foreign exchange volatilities, etc. which have impacted severely on the overall economic outlook in the country and the rest of the world.

The lender also substantially grew its interest income to N36.3 billion from N31.4 billion in the same period in 2021, creating a 15 per cent uptick from the value of the Bank’s loan asset portfolio.

The bank’s increased investment in digital banking platform empowered its retail potential to deliver an impressive 17 per cent growth in fees and commissions to N5.3 billion from N4.6 billion recorded in the corresponding period in Year 2021.

The Managing Director/CEO of Unity Bank Plc, Mrs Tomi Somefun, said that the outlook for the full year 2022 remained positive, reflecting optimism, stability, and growth in key performance indicators.

She noted that the growth trajectory recorded in the bank’s revenue by 17 per cent, profit by five per cent and deposit by four per cent among others, was a testament to the positive sentiment in the market.

She said, “This is especially at a time the market is experiencing a downturn with high inflationary trend and volatility which has impacted negatively on the operating environment.

“As we take further bold and audacious steps to round up the year on a stronger note, the bank will create more initiatives even in the very short term to broaden its retail focus, ride on novel technology and digital Banking to push aggressively on product marketing.

“Also, in addition to major activations in identified market segments to attract sustainable streams of income for the bank.

“The outlook for our financial position for the current year is bright as the bank is increasingly innovating with products and collaborative strategies to diversify our portfolio businesses, while taking advantage of robust technological resources to take on mass market and the unbanked sector,” she said.

She added that this would boost income and liability generation and financial inclusion of the banking ecosystem.

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Unity Bank posts N27.6bn gross earnings

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Unity Bank Plc has announced a gross earnings of N27.6 billion for the first half of 2022 ended June 30.

This is contained in the company’s unaudited half-year results submitted to the Nigeria Exchange Group Ltd. on Friday.

The figure represented a growth of 17.09 per cent compared with N23.6 billion posted in the comparative period of 2021.

The bank’s profit before tax during the period under review rose by 23 per cent to N1.8 billion from N1.5 billion in the corresponding period of 2021.

Profit after tax for the period equally increased by 23 per cent to close at N1.6 billion from N1.38 billion in the preceding period.

The key highlights of the financial statements showed growth in interest and similar income, which rose from 18 per cent to N23.94 billion from N20.27 billion in the corresponding period of 2021.

The company said this showed an indication of sustained growth in the loan book as well as improved earnings from the lender’s robust digital channels, arising from sustained investment in its digital payment infrastructure.

Similarly, the lender posted sustained asset growth as total assets moved up by seven per cent to N574.3 billion from N538.9 billion in 2021.

Other key highlights of the financial statement include a 12 per cent growth in deposits, which rose to N359.5 billion from N322.3 billion in December 2021.

The bank said the growth in deposit was a clear indication of the positive trend of its innovative retail products targeting several segments of the retail market.

It added that enhanced customer acquisition strategies for emerging products rolled out to the market during the period under review contributed to the growth in deposit.

Commenting on the performance, Mrs Tomi Somefun, the bank’s Managing Director/Chief Executive Officer, said that the bank posted impressive earnings in spite of the challenging operating environment.

She noted that while the key performance indicators continue on an upward trajectory, the outlook for our financial position had now moderated significantly looking at other fees and income lines which performance was hitherto characterised by volatilities in the operating environment.

Somefun said, “As the bank aims to further grow all indices to double-digit regions in the coming years, one reassuring take from the financial position lies in the market confidence, as well as steadily growing retail and SME franchise arising from the development of products that resonate with different markets segments.”

This, she said, would enable the bank to continue to operate and successfully navigate the tough operating environment, amid rising economic headwinds.

“Having invested massively in technology to drive a major revamp in our digital banking products and channels including the Unifi Mobile App, our USSD, *7799#, internet banking, among others, the major focus is to drive increased optimisation which will enable the bank to provide electronic convenience,” she said.

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Unity Bank sustains growth in profits by 43%

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Unity Bank has sustained its growth momentum as it recorded 43 per cent in both profit before and after taxes in the first quarter ended March 31.

Managing Director/Chief Executive Officer of the Bank, Mrs Tomi Somefun, disclosed in the Bank’s unaudited Q1-2021 results submitted to the Nigerian Exchange (NGX) Ltd., on Friday, in Lagos.

Somefun said that the retail lender’s profit before tax grew by 43 per cent to N784.3 million from N550.1 million recorded in the corresponding period of 2020.

She said that the profit after tax for the period, which also grew by 43 per cent, stood at N721.5 million compared to the N506.1 million recorded in the same period of 2020.

The Bank Chief added that as an outcome of increased focus on supporting local enterprises and industry, the asset portfolio also showed a significant growth in loan book of 76 per cent as net loans and advances to customers increased to N223.2 billion up from N126.6 billion recorded in the corresponding period.

“The total assets of the Bank for the period showed an appreciable growth of 42 per cent to close at N521.5 billion from N366.8 billion in the corresponding period of 2020.

“The balance sheet of the bank had been considerably de-risked with a Non-performing Loan (NPL) ratio of near zero per cent which it had consistently maintained over time, earned in ranks as one of the best in risk management and credit creation culture.

“The Bank recorded gross earnings of N11.5 billion, representing marginal decline of 3 per cent when compared to N11.9 billion posted in the corresponding period of 2020.

“The remarkable positive growth in profit and other strong indicators recorded in Q1-2021 is a sign of the Bank’s growing resilience as the economy continues on a recovery path following the impacts of COVID-19 pandemic,” she said.

Also, other key highlights of the Q1 results included the cash and balances with the CBN which recorded a whopping 326 per cent leap to close at N111.2 billion from N26.1 billion in the corresponding period of 2020.

According to her, the lender also grew its customer deposits by 13 per cent to N348.3 billion up from N308.8 billion recorded in the period under review – a strong indication of the growing popularity and acceptance of the Bank’s array of innovative products, services and new technologies deployed in its operations to enhance high level of customers’ experience and service delivery.

Interest and similar income also recorded a marginal increase of 1 per cent to N9.7 billion compared to N9.6 billion posted in the corresponding quarter of 2020. However, net interest income recorded a 16 per cent increase to N4.8 billion from N4.1 billion in the corresponding period of 2020.

Also reported was the total operating income which rose by 3 per cent to N6.6 billion from N6.4 billion, even as the net operating income rose by 12 per cent to close at N6.7 billion from N5.9 billion in the corresponding period of 2020.

Somefun said: “The first quarter result is a promising indication of better outcome for the year, profoundly reflecting the Bank’s renewed focus on driving efficiency and productivity.

“Anchored on targeted initiatives to grow both volume and quality of assets and offer a wide range of customer-centric products supported by novel technologies to its teeming and growing customers in all the six-geopolitical zones in Nigeria.

“The top-line performance was driven by improvement in net interest income margins which reported 16 per cent growth.

“The Bank is replicating the same momentum in the area of liability generation and to gain traction and we are targeting opportunities across regions and identified segments in retail and SMEs whilst optimising our technology and digital platforms.

“Such as Omni-channel UniFi, USSD *7799# to deliver bundled product bouquet, operational efficiency and improved unparalleled customer service delivery. Like the multi-language service channels, customers are to expect more innovations as the year unfolds”.

“The Bank will consolidate on the gains it has made on its assets growth and further build the franchise of the brand in many areas of the business to shake off any lethargy to galvanize efficiency across its earning assets, thereby diversifying its earnings base to further grow the bottom-line,” she added.

Somefun also explained that: “The Bank will continue to play formidably and efficiently in the area of its strength, especially in the niche space of agribusiness, to get more involved in the value chain banking having firmly established its strong foothold in the financing of primary crop production.

“Such as rice, maize, cotton, wheat, sorghum, etc. coupled with their rich and robust structures in value creation.

She added “We hope to continue to expand on this as we play our part in driving the nations’s quest for self-sufficiency in food production, employment generation, foreign exchange conservation and all allied advantages that come with agribusiness.”