The Nation Newspaper

Tag: Unity Bank

  • Unity Bank reverses N14.9b loss with N1.3b profit

    Unity Bank Plc staged a major recovery in the immediate past business year as the commercial bank moved from a net loss of N14.92 billion in 2017 to a net profit of N1.27 billion.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed pre-tax profit of N1.41 billion in 2018, as against pre-tax loss of N14.24 billion. Gross earnings however dropped from N89.93 billion in 2017 to N37.33 billion in 2018. Earnings per share recovered from net loss of 126.62 kobo in 2017 to 13.03 kobo in 2018.

    Directors of the bank stated that they have reached advanced stages in ongoing efforts to raise new equity and debt capital to bolster the balance sheet, which had been significantly impaired by a major non-performing loan resolution.

    Reassuring on the outlook for the bank, the board noted that additional equity and debt capital will improve the capital ratios of the bank as well as competiveness and its expansion plans.

    The bank stated that whilst the capital raising exercise has been diversified to engage several strategic investors, deliberate actions were taken to strictly extract commitment following the review of capacity, investment funding availability and strong poise and strategic alignment to the long-term vision and aspirations of the bank that form the basis to invest in it.

    “In the ongoing capital raising exercise, the bank has considered a variety of classes of investors, including local and foreign, internal and new investors, individual and institutional investors, amongst other options. However, all prospective investors are required to demonstrate financial and business capacity, impeccable reputation and potential to add strategic value towards achieving the bank’s strategic goals and vision,” the report stated.

    According to the bank, the strategic disposal of non-performing loans under a toxic asset resolution initiative in the ongoing capitalisation process resulted in the reported negative shareholders’ funds of N242.193 billion in 2017 and also impacted on the reported negative shareholders’ funds of N243.69 billion in 2018.

    “Management is committed to and highly optimistic of a successful conclusion of the capitalization activity,” the report stated.

    In a one-off total de-risking of its balance sheet, the bank had in 2017 wrote off a total of N16 billion that arose from goodwill from legacy merger issues, a decision that negatively impacted the bottom-line and led to a net loss of N14.2 billion in 2017.

    The courageous action taken by the bank towards cleaning up the observed issues thus resulted in a negative capital base but also gave birth to a leaner bank with a healthy balance sheet.

    “By this milestone, the bank now carries zero non-performing loan and is in full compliance with regulatory criteria. Furthermore, with a fully performing loan portfolio and improved risk processes, the financial risk on the bank from credit exposures have been extremely minimised,” the report stated.

    The bank had indicated that it had taken a number of strategic initiatives among which include; a revised market focus that has, and will continue to increase agriculture and agro-allied financing, youth and digital banking and women financing; enhanced retain banking drive and cost containment among others.

  • Unity Bank’s balance sheet grows to N235.9b

    Unity Bank Plc has grown its balance sheet by 50.8 per cent from N156.51 billion in 2017 to N235.98 billion last year.

    The audited financial statements presented to the Nigerian Stock Exchange (NSE) also showed gross earnings of N37.33 billion in the period under review.

    Similarly, Profit Before Tax (PBT) moved in a positive trajectory to close at N1.41 billion, with the lender recording a Profit After Tax (PAT) of N1.27 billion, shaking off the negative position it posted the previous year.

    The bank’s performance was supported by some fundamentals derived from corporate action to clean up its books by eliminating all the legacy non-performing loans, which resulted to full de-risking of balance sheet, enabling a new lease of life.

    Other performance indices showed significant growth across key financial metrics, with net operating income for the year ended December 31, 2018 growing by 112 per cent to N21.63 billion from N10.22 billion in the corresponding period of 2017.

    Non-Interest Income also increased to N6.3 billion from N1.61 billion recorded in 2017, as earnings per share for last year stood at 13.03 kobo, up from -127 kobo recorded in 2017.

    The bank’s Managing Director/Chief Executive Officer, Mrs. Tomi Somefun, said: “The most gratifying aspect of our 2018 performance is that the bank has made a dramatic turnaround from losses in the previous year to a promising profit position in 2018.

    “This was made possible by growth in the business throughputs and transaction-based banking with its attendant strong non-interest income.

    “We equally recorded significant growth in our customer acquisition through enhanced customer-centric products that we rolled out during the year, riding on our rebranded channels and platforms, which were well accepted by the youth.

    “We leveraged our exceptional competencies in agribusiness and rural economy niche market, which contributed to substantial growth in loans through on-lending schemes to farmers in the last quarter of 2018, all of which buoyed our performance for the year under review”.

    She explained that the strong performance feat came through composite strategic focus, involving the  revamp of its service delivery channels, products revamp and profiling, as well as building structured and secured operating environment to protect customers’ businesses.

     

  • Unity Bank wins EPIS award

    Unity Bank Plc has been named “Most Extensive Fraud Channel Coverage” at the Electronic Payments Incentive Scheme (EPIS) fourth  Efficiency Award 2019 held in Lagos at the weekend. The award was organized by the  Central Bank of Nigeria (CBN) and Nigerian Inter-Bank Settlement System (NIBSS).

    The bank won the award in recognition its outstanding compliance in fraud and cybercrime reporting and for being the financial institution with the most fraud channel coverage on the Central Antifraud System in 2018.

    The CBN has a central anti-fraud channel which monitors the number of fraud cases and the percentage of such cases reported. Not only was Unity Bank rated as the Bank that is most compliant in fraud reporting, the bank was also acknowledged for deploying efficient tools for monitoring fraud across all her electronic channels.

    The CBN and NIBSS praised the bank for promoting e-payment system and fraud prevention initiative in a manner that boost market confidence on CBN’s cashless policy.

    Receiving the Award, the Head of e-Business, Unity Bank Plc, Oluremi Tinuolu-Gabriel, commended EPIS, NIBSS and CBN for the award of recognition for the Bank which he noted as being special and remarkable. He added that “this honour is being received in a category where the Management of the bank has been very passionate not only with compliance directives but also to support with constant ICT infrastructural upgrade as well as effective information and cyber security practice to deliver optimum performance”.

    For the bank, the award is a motivation to all end users of e-payment channels who have kept faith in this journey to sustaining the cashless initiative. As a Bank, the award also inspires us to continually raise the bar of all compliance standards in fraud reporting.

  • Unity Bank wins CBN Development Finance Award

    Unity Bank Plc has received the ‘2018 Best Participating Bank in the Central Bank of Nigeria’s Development Finance activities award’ in Jigawa State, Northwest, Nigeria.

    The recognition came at the Dutse Bankers Forum organised by the CBN bringing together financial stakeholders in Jigawa State including CBN, Representative of Chartered Institute of Bankers (CIBN) North West Zone, NIRSAL, 16 Commercial Banks in Jigawa State, the Controller of Prison Service, Jigawa State and Turaki of Dutse who represented the Emir of Dutse.

    Receiving the award, the Unity Bank’s Regional Manager, Dutse, Mr. Mustapha Idris Baba, commended the CBN for the recognition accorded the bank which is “testament to the bank’s growing franchise as a retail bank of choice as well as its deep rooted financial inclusion strategy in Jigawa State’’.

    Coming barely two months after the bank won two highly coveted award; namely, the Central Bank of Nigeria (CBN) 2018 sustainable banking award for ‘Sustainable Transaction of the Year in Agriculture’ and Presidential Award in recognition of the Bank’s participation under the Anchor Borrowers Programme, this award confirms the rising profile of Unity Bank Plc as a leader in Agricultural financing.

    Commenting on the development and other exceptional achievements recorded by the Bank in the recent past, the Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Tomi Somefun, said the awards are strong indications of the success of Unity bank’s business model which underpins the resilience, endurance, robustness and viability of the brand to sustainably deliver exceptional financial services to individuals, groups, and organisations across segments.

    According to her, “the bank is committed to financial inclusion by deploying technological edge to enhance electronic convenience for all its customers”. The Governor of Jigawa State, Mohammad Badaru Abubakar, represented by the state’s Accountant General, Alhaji Haruna Ahmed-Amin, while commending Unity Bank for its focus in driving financial inclusion in the state, used the occasion to call on all banks operating in the state to come up with tangible offers for their teeming customers by developing financial services products that will enable them penetrate the rural population and the farmers, thereby reducing dependence on public sector deposits.

    At the Annual Dutse Bankers Forum, Unity Bank was also recognised for emerging winner of the 2018 Dutse Bankers Forum football competition held as part of the activities marking the event.

  • Unity Bank’s directors meet on recapitalisation

    Directors of Unity Bank Plc will next week meet to review the bank’s ongoing recapitalisation plan and performance in the immediate past business year.

    Unity Bank Plc Company Secretary, Mohammed Shehu, said the bank‘s board will meet to consider the bank’s financial statement and accounts for the year ended December 31, 2018.

    Another major item on the agenda of the crucial board meeting is the ongoing capital raising efforts of the bank.

    Unity Bank has been discussing with new major equity investors that are expected to inject new funds and expertise into the commercial bank as it seeks to beef up its capital base.

    The bank’s board of directors confirmed that discussions have reached advanced stage in the planned recapitalisation by prospective investors and the bank might soon announce the transactions.

    The ongoing discussions with prospective investors, the bank said, had led to extensive review of the bank’s operations by the Central Bank of Nigeria (CBN).

    “We are pleased to inform our stakeholders that discussions with our prospective investors are progressing according to plan and will be concluded shortly, following which necessary regulatory approvals would be sought and announcement made,” the bank said in a regulatory filing signed by Shehu.

    Key extracts of the third quarter report of Unity Bank for the period ended September 30, 2018 showed that gross earnings dropped from N65.03 billion in 2017 to N26.125 billion in 2018. Interest income had declined from N63.15 billion to N20.409 billion. Operating income stood at N15.54 billion in 2018 as against N40.39 billion in 2017. Profit before tax slumped to N643.78 million, from N2.72 billion. Profit after tax dwindled to N585.84 million in third quarter 2018 as against N2.448 billion in third quarter 2017. With these, earnings per share dropped from 20.94 kobo to 5.01 kobo.

  • Buhari praises Unity Bank over Anchor Borrowers’ Programme

    President Muhammadu Buhari has commended Unity Bank Plc for its contributions to the Anchor Borrowers’ Programme (ABP).

    The lender got an award from Rice Farmers Association of Nigeria (RIFAN) for  participating in ABP.

    The farmers presented the award in Abuja during a gala night organised by beneficiaries of the government’s ABP  held at the old Banquet Hall of the Presidential Villa, Abuja.

    Receiving the award, the bank’s Managing Director/Chief Executive Officer, Mrs. Tomi Somefun praised the Federal Government, the Central Bank of Nigeria (CBN) and RIFAN for the recognition and promised that the bank would continue to contribute to the success of the ABP initiative.

    It would recalled that Unity Bank  recently  won the CBN sustainable banking award,  emerging tops in the sustainable transaction of the year in agriculture.

    The lender won the coveted award for its compliance with the Sustainable Banking Principles on the management of Environmental and Social Risk set out by the CBN for adoption by Nigerian Banks, Discount Houses and Development Banks.

    At the just-concluded Bankers’ retreat held in Lagos, the CBN while presenting the award to the bank, commended its efforts in promoting ABP, stressing that the lender deserved the award for the role it played in actualising and managing the project.

    The social and economic impact of the project on the household income of over 270,000 participating small holder farmers as well the contribution to gross domestic product of the country cannot be under estimated.

    Commenting on the Award, Mrs Somefun  observed that the lender has on-boarded over 90,000 financially excluded farmers and generated bank verification number for them to facilitate financial and banking transaction.

    Capacities of about 60 agro input suppliers were expanded through provision of facilities and financial advisory services.

     

  • Apex bank lauds Unity Bank’s agric contributions

    Unity Bank Plc has won the Central Bank of Nigeria (CBN) 2018 sustainable banking award, emerging tops to win Sustainable Transaction of the Year in Agriculture.

    The lender won the coveted award for its compliance with the Sustainable Banking Principles as it relates to the management of Environmental and Social Risk set out by the CBN for adoption by Nigerian Banks, Discount Houses and Development Banks.

    At the just concluded Bankers’ retreat held in Lagos, the CBN while presenting the award commended its efforts of Bank in promoting the Anchor Borrowers Program (ABP), Rice Farmers Association of Nigeria (RIFAN) project adding that the lender deserves this award because of the role it played in actualization and management of this audacious project.

    The active involvement of the Bank in various financing schemes has resulted in creating huge social and economic impact on the income of households involving over 270,000 participating small holder farmers thereby boosting not only the gross domestic product but also helping to achieve self-sufficiency in food production.

    Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Tomi Somefun dedicated the award to all farmers and businesses in agriculture value chain, adding: “we have successfully on-boarded over 90,000 hitherto financially excluded farmers and generated bank verification number for them to facilitate financial and banking transaction. Capacities of about 60 agro input suppliers were expanded through provision of facilities and financial advisory services’’.

    Still speaking, she said: “Safeguards shall exist to protect rare and endangered species, preservation of conservation zones and protection of grazing and forest reserves.”

    The bank’s Environmental Management Program covers comprehensive business operations and endeavors to achieve minimum adverse impact on the environment in the scope of its business activities.

  • Unity Bank, NACCIMA drive e-payment with debit cards

    Unity Bank and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) have introduced co-branded debit card to deepen use of e-payment solutions in the country.

    The prepaid debit identity card bears the photograph of the registered owner or responsible party. The card will be issued by Unity Bank and enable card-holders provide value added services such as discount for flights, hotels, vehicles and equipment purchases, Visa assistance among others.

    Speaking at the launch of the payment solution in Lagos, the Managing Director and Chief Executive Officer, Unity Bank Plc, Mrs. Tomi Somefun said: “This is a very important venture to us at Unity bank. This venture would be one that would take all parties and stakeholders to greater heights and would be for the ultimate benefit of all the members.

    She added that the strategic partnership is an alliance that will enable the Association and Unity Bank succeed together, adding that the bank is not taking it lightly, but determined to make it resounding success.

    Also speaking, Usman Abdulqadir, Executive Director, Business Development and Compliance, Unity Bank said NACCIMA has been a rallying point for all interests that are associated with ease of doing business and that the bank shares certain common attributes with the association.

    His words: “We are proud to be associated with NACCIMA. Unity Bank prides itself as a bank that is development oriented. From the beginning, the bank has been providing simple banking services to its customers especially the Small and Medium scale Enterprises across the country and this is one more of such engagements.”

    Over time, Unity Bank has seen the growth and benefits of an engagement with agricultural-minded companies and SMEs, stressing that the latest partnership is just one more aftermath of this engagement.

  • Unity Bank, Jigawa partner on ‘Trader ‘Moni’

    The Federal Government has flagged off social welfare initiatives code-named ‘Trader Moni’ in partnership with Jigawa State government and Unity Bank Plc with the initial sum of N300 million.

    With a total of N1.5bn earmarked for the initiative, the scheme is meant to accelerate an on-lending through Unity Bank to about 35,000 Jigawa petty traders

    Vice President Yemi Osinbajo who was in Jigawa for the launch of “Market Moni” presented the Unity Bank Cheque through the Chairman, Jigawa State Chamber of Commerce Mines and Agriculture (JICCIMA), Alhaji Shehu Muhammad Sunusi.

    According to the Regional Manager, Unity Bank Plc, in Jigawa State, Mustapha Baba, the Bank is in good stead to facilitate the massive on-lending scheme to the benefit of Jigawa petty traders, not only as it has continued to identify with the genuine aspirations of the government and people of state, but also to support the bank’s pursuit of financial inclusion which has dominated its business objective for some time.

    Baba explained that arrangements have been made for the bank to begin direct disbursements to selected beneficiaries/small businesses in the state as intervention fund on behalf of the State Government/JICCIMA.

    Osinbajo also used the opportunity to launch the Jigawa State Chamber of Commerce Mines and Agriculture Business Support Loan.

  • Unity Bank optimistic after extensive clean up

    Unity Bank of Nigeria Plc now has no non-performing loans and has returned to profitability after the directors of the bank took decisions to clean up the balance sheet of legacy toxic assets.

    In a one-off total de-risking of its balance sheet, the bank in 2017 wrote off a total of N16 billion that rose from goodwill from legacy merger issues, a decision that negatively impacted the bottom-line and led to a net loss of N14.2 billion in 2017.

    Explaining the background to its current performance, the bank stated that although the clean-up of its books negatively impacted its performance in 2017, the bank is now in a better position to grow and create better values for shareholders.

    The bank noted that its new board and management took the bold action to tackle lingering effects of legacy problems in a bid to eliminate the drag on the bank in the form of huge legacy non-performing loans, an inefficient operating structure which manifested in excessive costs, poor branch spread and inadequate application of technology amongst others.

    According to the bank, signs of a return to improved performance was evident in the third quarter 2018 results, which showed a profitability of N644 million.

    The third quarter 2018 results also showed the ratio of non-performing loans standing at zero per cent, a clear indication of the management’s excellent risk assessment for the period while a marginal loan-to-deposit ratio of 3.6 per cent indicates a significant room for growth and attendant income boost.

    The bank stated that ongoing strategic initiatives are geared towards a complete transformation of the bank and setting it on the path of strong and sustainable growth and profitability.

    “The courageous action taken by the bank towards cleaning up the observed issues thus resulted in a negative capital base but also gave birth to a leaner, smarter and dynamic bank with a healthy balance sheet,” the bank stated.

    To sustain the new momentum and return the bank to one of the best performing in the Nigerian market, the bank said it has been making significant progress in its ongoing capital raising exercise and it is firmly on course to achieve sustainable growth and sound performance.

    Unity Bank said it is optimistic that its liquidity and working capital will be significantly enhanced with the anticipated successful capital raising exercise, a development that is poised to make the bank one of the most liquid in the Nigerian market.

    According to the bank, with a zero per cent non-performing loans portfolio and enhanced credit management process, it has solved its debilitating legacy problems and will now move more sure-footedly towards sustained revenue and profits growth, while capital adequacy is expected to rise above the regulatory minimum after the capital raising exercise.

    The bank added that it has taken a number of strategic initiatives among which include; a revised market focus that has, and will continue to increase agriculture and agro-allied financing, youth and digital banking and women financing; enhanced retain banking drive and cost containment among others.

    Key extracts of the third quarter report for the period ended September 30, 2018 showed that gross earnings dropped from N65.03 billion in 2017 to N26.125 billion in 2018. Interest income had declined from N63.15 billion to N20.409 billion. Operating income stood at N15.54 billion in 2018 as against N40.39 billion in 2017. Profit before tax slumped to N643.78 million, from N2.72 billion. Profit after tax dwindled to N585.84 million in third quarter 2018 as against N2.448 billion in third quarter 2017. With these, earnings per share dropped from 20.94 kobo to 5.01 kobo.