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Unity Bank posts N36.18 billion earnings in nine months

By Guardian Nigeria
08 November 2021   |   2:56 am
Unity Bank Plc has declared gross earnings of N36.18 billion for the nine months ended September 30, 2021, and a 23 per cent growth of PAT totalling N1.94 billion for the same period.

Unity bank

• Records 23% growth in profit

Unity Bank Plc has declared gross earnings of N36.18 billion for the nine months ended September 30, 2021, and a 23 per cent growth of PAT totalling N1.94 billion for the same period.

A review of the unaudited results for the 3rd quarter of 2021 released to the Nigerian Exchange Group Limited showed that the Bank’s gross earnings of N36.18 billion represent a moderate seven per cent growth from N33.9 billion recorded in the same period in 2020.

Also, with the strong performance recorded during the period under review buoyed by a 31 per cent growth in its loan book to N265.32 billion from N202.08 billion recorded in 2020, the lender grew its asset base by 17 per cent to N574.56 billion from N492.02Billion recorded in December 2020.

The bank’s profit before tax for the period under review grew by 23 per cent to N2.11 billion from N1.71 billion in the corresponding period in 2020.

This sterling performance comes amid fragile recovery and volatilities in the operating environment and key macroeconomic indicators following the global COVID-19 pandemic, weak market sentiments and inflationary trends, as well as tough regulatory headwinds that have impacted severely on economic activities.

The bank also substantially grew its net interest income to N14.63 billion from N12.67 billion in the same period in 2020; creating a 15 per cent uptick from the value of the bank’s rising loan portfolio and an improvement in its transaction banking activities with its customers, achieved through excellent service delivery.

Its fees and commissions averaged 16 per cent to report an increase of N4.56 billion from N3.92 billion within the period under review, attributable to a dividend of the bank’s strategic retail play, which boosted transaction volume.

The Managing Director/CEO, Tomi Somefun, expressed satisfaction with the performance indices of the Q3/2021 financials. She said of particularly inspiring are the growing loan book and quality of assets (31 per cent growth), cash and balances with the CBN (24 per cent growth) and PBT (23 per cent growth), altogether adding to the consecutive growth of the balance sheet in the last couple of years.

In her overall assessment, she stated “the market is increasingly beginning to see the efforts in the strategic refocusing of our business and diversification of our earnings base which is translating into tangible results even as we strive to meet the expectations of our esteemed customers and cherished stakeholders.”

She said that while the bank’s focus on agribusiness has provided both brand and business benefits, the institution has also made significant investments in the development of the retail market to grow its market share in various target segments by scaling up operations in the niche market.”

Somefun also said the bank would remain dynamic by embracing current and emerging market trends in technology, effectively targeting the youth market, driving financial inclusion in the women segment, developing robust product marketing to create value through a focus on digital strategies to facilitate transaction and e-banking channels.

Looking ahead, Somefun noted: “We are optimistic that nothing will threaten to upend the current COVID-19 recovery, especially as the Bank is poised towards building an increased momentum to ride the wave of the economic headwinds, even as the growing inflationary pressures and the soaring energy prices remain a concern.”