Unity Bank explains reason for share reconstruction
Unity Bank Plc has explained that the bank embarked on share reconstruction in order to sustain its business module and enhance profitability.
Speaking in Lagos at the Bank’s ‘Fact Behind the Figure’ presentation on the floor of the Nigeria Stock (NSE), the Managing Director of the Bank, Henry Semenitari explained that the initial volume of shares of 116.8 billion, when compared to its shareholders fund would not generate profit for dividend payment or attract more investors into the bank.
He assured stockbrokers that the basis for the exercise was largely on performance, which would translate to enhanced profitability and dividend payout to all shareholders in a near future.
Semenitari, who stressed the bank’s commitment towards ensuring that it sustains its drive and focus to deliver on the business objective said: “We had 116.8b and the level of the shares, in relation to our shareholders fund cannot sustain our business module or attract more investors into the bank. It just happened a month ago and it is at the right time. It is strictly on performance and we would work tirelessly to enhance shareholders value” he assured.
He pointed out that its banking transactions through e- business contributed to major success recorded by the bank in 2014 financial year.
According to him, the volume of business recorded by the bank within the period through Point of Sale, (POS) increased to 75,393 from 17,529 achieved in 2013, indicating an increase of 57,864 or 330 per cent. He said the volume recorded through Automated Teller Machine (ATM) equally surged to 5.7 million from 3.5 million achieved in 2013 financial year.
He assured that the bank will continue to improve on its e-business, adding that the growth in business volume through ATM recorded by the bank showed that large number of customers from other banks found Unity Bank’s ATM more reliable and efficient.
On the bank’s financials, he explained that the bank targets gross earning income to the tune of N76 billion and profit before tax of N20.3billion in 2015 financial year.
According to him, the bank recorded a tremendous growth during the period under review from a loss position of N33.6 billion as at December 2013 to a profit position of N13.6 billion before tax in 2014.
Gross earning according to him, stood at N77.071 billion from N62.827 billion recorded in the comparable period of 2013 while shareholders fund surged to N76.263 billion from N28.212 billion achieved in the 2013 financial year.