The Nation Newspaper

Tag: Unity Bank

  • U.S. firm to invest $1b in Unity Bank

    An American private equity firm, Milost Global Inc, is seeking to inject $1 billion to recapitalise Unity Bank Plc, one of Nigeria’s 24.

    According to a report, the U.S. firm plans an initial stake of about 30 per cent in Unity Bank in exchange for its first equity investment of $250 million.

    Relying on two sources believed to be aware of talks on the transactions, Bloomberg reports that Milost plans to invest $700 million in equity and $300 million in five-year bonds that can be converted into shares in the Nigerian lender.

    However, the transaction is still subject to a due diligence as well as regulatory approvals, but the first part of the deal may be completed by next quarter.

    The rest of the cash will be drawn down in intervals over a period of four years, provided Unity Bank has sufficient shares to issue to Milost, one of the sources said.

    Some small- and mid-sized Nigerian lenders are battling to rebuild capital levels after a slump in oil prices triggered a foreign-currency shortage and a contraction in the country’s economy in 2016 made it difficult for businesses to repay loans.

    Unity Bank, which was formed out of the merger of nine banks between December 2005 and March 2006, said last April that it was in talks to sell its non-performing loans to avoid penalties after missing a deadline set by regulators on its recapitalisation plans.

    An investment in Unity Bank will be Milost’s third in a publicly traded Nigerian company since it agreed to pump $350 million into oil-services company Japaul Oil & Maritime Services Plc in February and to provide a $250 million financing facility to Resort Savings & Loans Plc.

    Several calls to the numbers listed on Milost’s website have gone unanswered, Bloomberg said.

    The private-equity firm is targeting companies that trade at less than half of their intrinsic value using a facility combining debt and equity that it calls the Milost Equity Subscription Agreement, it said in an emailed statement yesterday.

    Milost buys shares of a company at a minimum 50 per cent premium to its market value, and then pegs this price over the next 90 days. If the stock fails to exceed this threshold, the target company will pay the difference to Milost in the form of extra stock, and a penalty of 10 per cent to 20 per cent of the discount that the share is trading at over a five-day period, it said.

    “The Milost Equity Subscription Agreement is a growth instrument that creates and builds confidence in the stock of the companies in which it invests,” the company said. The targeted company cannot draw down the full committed facility in one tranche and is only allowed to use it from time-to-time over a three- to five-year period, with Milost eyeing a seven- to nine-year horizon for an exit, it said.

    Milost is taking a bet on Unity Bank as the economy of Africa’s largest oil producer shows signs of recovering from a recession after three straight quarters of expansion in gross domestic product, which the International Monetary Fund estimates will grow 2.1 per cent this year.

  • Unity Bank takes ‘Agency Banking’ to Kano, Jigawa

    Unity Bank takes ‘Agency Banking’ to Kano, Jigawa

    Unity Bank has commenced its agency banking services in Kano and Jigawa states. Theexcercise is expected to bring manyof the unbanked into the financial services net.

    In line with Central Bank of Nigeria’s financial inclusion mandate, Unity Bank targeted its Agent Banking services at Gumel in Jigawa state and Rijiya-Lemu in Fagge Local Government area of Kano state.

    According to the General Manager Products & Channels Directorate of Unity Bank, Bonaventure Okhaimo, prioritizing the North West was borne out of the need to tap into the huge unbanked population in the region.

    Agent Banking model is conceptualised to evolve as a model of community and rural banking where basic banking services are brought to the level of rural financial activities, said Bonaventure.

    The roll-out, which witnessed the opening of many Agency outlets in the areas, was attended by numerous locals, customers and prospects, who were all excited to be able to avail themselves of financial services without travelling long distances to a bank branch.

    The customers were able to open accounts with Unity Bank, perform cash-in (deposit), cash-out (withdrawal) as well as bills payment transactions at the new Agent Banking outlets. With the bank’s digital account opening portal – Unity1 Online – new tier-1 accounts can be opened for customers without any need for identification. The whole process takes less than 4 minutes. Customers are advised of their NUBAN account numbers immediately, and are able to start transacting straightaway; in fact, once they provide their Bank Verification Numbers (BVN), they have full access to their accounts.

    The bank’s Group Head, Retail & SME Banking, Olufunwa Akinmade, explained that an important part of the roll-out in any location, is a two-day customer education session organized to bring customers up to speed with the basic tenets of the scheme.

    On the security of the customers’ funds, Mr. Akinmade said that the mitigant on the withdrawal side is that  the service is running on MCash-a secure phone-based withdrawal system backed by the Nigeria Inter-Bank Settlement Systems (NIBSS) while at the deposit end, the customer must receive an alert to be sure that the transaction has been consummated.

     

     

  • Attention, Unity Bank

    SIR: I am a youth corps member serving currently serving in Abia State. During our orientation programme, Unity Bank was one of the banks introduced to us. Much as I would have loved to have my federal allowance paid to my bank of choice, NYSC decided for me and I found myself in Unity Bank. Shortly after registration, I heard they came over to distribute our ATM cards. However because of the regimented lifestyle in camp, I could not go for mine thinking I could drop by any branch and order for it or better still use the bank’s mobile application for my transactions.

    It turned out to be a costly assumption.

    When September 2017 allowance was paid, it was on a Friday evening. I received a debit of N18,500 in less than one hour. I waited till the following Monday to lay my complaints to the branch of the bank in Umuahia, since my place of primary assignment is Umuahia and the money was cashed in one of the ATMs in the city based on the text alert received.

    From that time till now, the bank has done nothing about my request for a remedy. I even went as far as their head office in Lagos to no avail. Please help me, don’t let this people that do not have the fear of God rob me of my right. I am tired of not being heard. Unity Bank should do justice to a poor corps member!

    • Ayobami Ogunmona,

    Umuahia, Abia State.

     

  • Customer ‘hacks bank’s system, steals N23m”

    Customer ‘hacks bank’s system, steals N23m”

    A customer, who allegedly hacked several Unity Bank accounts and stole $64,822.97 (about N23.3million) with an Automated Teller Machine (ATM) card, has been brought before an Igbosere Magistrates’ Court, Lagos.

    Adeagbo Samson Bayonle, 37, was accused of committing the alleged crime in connivance with one Dayo Ogunseyitan.

    The Nation learnt that the alleged crimes were committed on November 6, 2017.

    The theft was discovered following complaints by affected account owners in several Nigerian cities.

    The bank initiated an audit which confirmed the theft, following which it reported the matter through a petition to Commissioner of Police (CP) Special Fraud Unit, (PSFU), Ikoyi, Mr Ibrahim Lamorde.

    Lamorde, a former chairman of the Economic and Financial Crimes Commission (EFCC), directed a team led by Assitant Superintendent (SP) Lazarus Nurus to investigate the complaint.

    The team, following a tip-off, tracked the defendant and Ogunseyitan to their hideout at an undisclosed location in Lagos.

    The defendant was arrested, but, according to the police, Ogunseyitan fled and is now at large.

    Bayonle was arraigned yesterday before Mr B. I. Bakare on a two-count charge of stealing.

    Prosecuting Inspector Wewe Adegbayi informed the court in charge No. V/73/2017 that the defendant and Ogunseyitan withdrew the sums from several ATMs in Lagos, Ibadan and other cities.

    Adegbayi said after hacking the bank’s system, both men modified a naira ATM card so it could withdraw dollars, following which they withdrew $64,822.97 from the accounts.

    According to him, the offences contravened sections 285 and 323(2) of the Criminal Law of Lagos State, 2011.

    Bayonle pleaded not guilty.

    His counsel, Olusegun Adaranijo prayed the court to grant him bail, promising that Bayonle would not jump bail.

    In a bench ruling, Magistrate Bakare granted him N5 million bail with two surties in the like sum, one of whom must be a landed property owner in Lagos.

    Bakare also directed each surety to deposit N50,000 in the court’s Chief Registrar’s account.

    The magistrate ordered that the defendant be remanded in Ikoyi Prison, untill he fulfils the bail conditions.

    The case continues on January 12, 2018.

     

     

  • Unity Bank grows assets to N483.82b

    Unity Bank grows assets to N483.82b

    Unity Bank Plc has grown its total assets to N483.82 billion and gross earnings to N65 billion in the third quarter ended September 30, this year. Its profit before tax stood at N2.72 billion while post-tax profit was N2.45 billion.

    The result also showed that it has sustained a positive, but modest performance across key financial indices in spite of the challenging operating environment. The result, according to the lender in a statement, attests to its ability to remain profitable and deliver good returns on investment to its shareholders and customers. A review of the bank’s performance showed a modest growth across key financial indices by one per cent for gross earnings to N65.03 billion from N64.58 billion in the corresponding period of 2016.

    Operating expenses were down by two per cent to N18.6 billion from N18.9 billion in September 2016. This was due to cost containment initiatives instituted by the management aimed at optimising resources that attract efficiency and effectiveness of the lender’s assets. The bank’s earnings per share for the period under review stood at 20.94 kobo.

    Managing Director/CEO Unity Bank Plc, Mrs. Tomi Somefun,  noted that the bank was in the process of repositioning itself and has tapped into the emerging opportunity in the enlarged economic space, especially in the agriculture and SME value chains.

    The bank is also building strong infrastructure for retail banking and attracting youths for its sustainable banking business by developing customer-centric products to meet the needs of its esteemed customers.

    She noted that the bank is promoting initiatives aimed at unlocking inherent potentials that will enable it to effectively ride on economic headwinds and target opportunities in the markets.

    The bank recently recorded success in the resolution of its legacy Non-performing Loans (NPLs); an initiative now considered as an industry-wide direction in Private Asset Management Company (PAMC) as encapsulated in the new Central Bank of Nigeria’s (CBN) exposure draft for addressing banks’ NPLs challenges. The full impact of the initiative on the account and shareholder’s value is expected to begin to manifest soon.

    Working hand- in- hand with the Federal Government to achieve a reduced dependence on oil revenue, Unity Bank is contributing its quota towards the development of the agricultural sector by developing NIRSAL Farmers Savings Account product; specifically designed for bank customers (farmers) in rural areas.

  • ‘Why Babangida is Unity Bank’s chairman

    ‘Why Babangida is Unity Bank’s chairman

    Aminu Babangida, son of former Military Head of State, Ibrahim Babangida, was appointed the chairman of Unity Bank based on merit, considering his entrepreneurial skills and capabilities.

    His vast knowledge, unrelenting gift of perception and excellent moral fibre enhanced his appointment by Unity Bank as well as ratification of his employment by Central Bank of Nigeria (CBN).

    This makes him the country’s youngest bank chairman ever, at 40 years. Despite his youthfulness, Aminu is blessed with a wise head on his young shoulders.

    Unity Bank nurtured no inhibition appointing Aminu as its chairman. The ex-Military President Babangida’s son looked every inch intimidating on paper, thus beating other candidates.

    Aminu exudes the common core of entrepreneurial depth, tact and other personal and social abilities, which have proved to be key ingredients of his brilliance and emotional intelligence.

  • Unity Bank grows capital base to N80b

    Unity Bank Plc’s capital base has hit N80 billion, up from N31 billion in 2014, its former Chairman, Board of Directors, Thomas Etuh, has said.

    Etuh, the immediate past board chairman of the bank said in a post-retirement interview with News Agency of Nigeria (NAN) that the growth was recorded under his watch, between 2014 and 2017.

    He retired as the bank’s board chairman a fortnight ago and explained that the lender was able to achieve the feat because of its “agric business” banking. “You know Unity Bank is number one in agriculture, in terms of agric lending to small holder farmers; we also have a product for youths because youths own this generation. I came into Unity Bank in time of recapitalisation under Sanusi  Lamido Sanusi as the Central Bank of Nigeria Governor and we recapitalised the bank to get it to a national bank where it is today.

    “Interestingly, we are leaving the bank in the capital excess of N80 billion from the N31 billion that we met it,” Etuh said.

    According to him, “the successes recorded by the bank did not come without the contributions of its two major co-shareholders, former President Olusegun Obasanjo and ex-military President Ibrahim Badamasi Babangida.

    He said: “Obasanjo and Babangida came up with that name `Unity’ after the merger of some southern and northern banks. The merger means a lot for Nigeria’s unity. So, having nine banks from different entities, it behoves on the board to also merge the different banks culture into one; and that, we did to make it a national bank”.

    “You can see that the bank has flourished in various products which have brought it to stability, and it was a collective effort of the board and management”.

  • Unity Bank donates vehicle to Borno SUBEB

    Unity Bank Plc has stepped up its support to Borno State Government with the donation of a vehicle to the State Universal Basic Education Board (SUBEB) as part its Corporate Social Responsibility to promote education and ameliorate the effects of insurgency in the state.

    The vehicle was presented on behalf of Unity Bank Plc by a team led by two its directors:  Hajiya Yabawa Lawan Wabi and Temisan Tuedor, and received by the Executive Governor of Borno State, Hon. Kashim Shettima who praised the bank for its unflinching support to the people of the state especially during the challenging attacks by insurgents.

    Shettima praised the numerous gestures of Unity Bank Plc acknowledging previous support to the state, especially the donation of relief materials worth millions of naira to the Internally Displaced Persons (IDPs) in September 2016, the N25 million support to the State’s University projects in 2014 and the consistent presence of the Bank in the state even during the peak of the insurgency.

    He reinstated his administration’s willingness to consolidate the cordial mutual relationship existing between the Bank and the state government; noting that Unity Bank has stood firm by Borno State to support its developmental agenda.

    Presenting the vehicle, Hajiya Yabawa, a former Minister of State for Finance, noted that the bank has observed with satisfaction the current efforts of the state in rebuilding its educational infrastructure and said that the donation was to complement government’s effort in ensuring proper supervision of school activities.

    She restated the bank’s commitment to giving back to the society and called on other corporate bodies to come to the aid of the state in line with Presidential Initiative for the Northeast.

    Beyond the Bank’s CSR and besides being in the forefront of private sector intervention initiative in the Northeast, she said the Bank has equally kept faith in its business being the only Bank that did not close operations to its teeming customers even at the peak of the insurgency experienced in Borno State

    Unity Bank has a long history of support to the internally displaced persons. Only recently, the Bank played host to The Praxis Catholic School for Internally Displaced Persons (IDP) and vulnerable children during an excursion of the Students to the Bank’s Regional office in Abuja where the Bank donated materials to the school.

  • Unity Bank partners Foundation

    Unity Bank has charged organisations and government agencies to pay greater attention to employee assistance programmes to minimise depression, anxiety and excessive stress in the workspace.

    This, the lender, said would impact positively on job performance, mental and physical health and emotional wellbeing of their workforce.

    Writing on its recent partnership of Chosen Vessels Empowerment Foundation (CVEF), the statement added that “the need to increase mental health awareness through a platform that is able to engender greater societal engagement and reach to relevant stakeholders in both public and private sectors informed the Bank’s commitment to promote seminar on Mental Health as part of its Corporate Social Responsibility”.

    Mental Health consultants at the seminar focused discussions on pre-emptive actions that can be adopted to stem the rising cases of mental disorder. One of the facilitators, Chief Consultant Psychiatrist with Federal Neuropsychiatric Hospital, Lagos, Olufumilayo Akinola, identified the ‘main common mental disorders’ as ‘depression, anxiety and substance abuse’.

    “There are effective and affordable treatments for most emotional disorders. Appropriate treatment can help improve the quality of life for most people experiencing mental disorders and their families”, she advised.

    Gaining early improvement from mental ailment, according to Akinola, would depend on identifying the symptoms, reporting to appropriate healthcare provider and offering needed support to both patients and their families.

    Unity Bank will continue to promote greater health seeking behavior, greater inclusion as against social isolation and stigmatization of people experiencing mental disorders; stating that “if the society steps up empathy, counseling and other form of assistance to reach out to people suffering from depression, it would go a long way in minimizing cases of suicide that the country is witnessing”.