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Tag: Unity Bank

  • Unity Bank sacks 215 workers

    Unity Bank sacks 215 workers

    Unity Bank Plc yesterday reduced its over 2,000  workforce by sacking 215 members of staff, it was reliably learnt.

    The exercise, it was further leant, was to enable the lender realign its operation and pursue a long term growth strategy.

    Some of the  downsized staff members were said to have opted to resign while management approved severance package for them in line with the bank’s policy.

    The lender last May, forged a strategic alliance with Black Trituium, equity and investment fund manager.

    The bank said it in a report on its website that it was driven by the vision to be the retail bank of choice for all Nigerians and “this is at the core of all that we do”.

    Investigation revealed that the affected members of staff were those that achieved less than 40 per cent of their performance target, which affected the lender’s overall profitability in recent years.

    The downsizing, which cut across all cadres including junior, middle and top management positions, happened at a time majority of banks are battling with poor profitability over harsh economic conditions and heightened business risks from the  plunge in crude oil prices.

    The bank is also said to have attracted specialist skills to its workforce since the relocation of its head office from Abuja to Lagos, which was in line with its plan to grow market share in viable clusters of the retail market.

    A source close to the bank said the new focus of the business has led to significant enhancement of human capital in its various business units.

    This was with a view to injecting fresh ideas, initiatives and energies to strengthen its various departments with capabilities to pursue the attainment of strategic business focus in the Agricultural financing, retail/Small and Medium Enterprises (SMEs) and development of rural economy.

    It bank, it was further leant, recently hired about 200 new staff to drive the transformation initiative while about 100 other staff were said to have been promoted.

    Commenting on this development, an industry expert asserted that these exercises are part of the hard choices that forward-looking organisations desiring optimum performance had to take from time to time to enable it deliver consistently on shareholders expectations.

    In the report on its website, the lender said it was one of Nigeria’s leading retail banks with 240 business offices spread across the 36 states and the Federal Capital Territory. “We are Nigeria’s seventh largest bank by business locations,” it said.

    The Nation learnt  that the new investor in the bank, Black Trituium, was committed to making significant equity investment in the bank.

    This strategic alliance will expand Unity Bank’s business scope, strengthen its capital base and support the bank’s retail strategy while meeting the investment objectives of Black Trituium. The Black Trituium manages funds for individuals and institutions such as Trade Union Congress (TUC).

    The collaboration with the bank is expected to expand the retail and Small and Medium Enterprises segment of the bank. Investment analysts see this as a unique opportunity with the potential of broadening the bank’s customer base and provide long term stakeholders value.

    Furthermore, given the current economic outlook, this strategic alliance will come with immediate benefits that will enhance the capacity of the bank to meet the needs of its banking public.The alliance will also support government’s initiatives aimed at driving growth in the real sector through Small and Medium Enterprises (SMEs) and retail products,  with particular focus on the agricultural sector.

    Unity Bank commenced operations in January 2006 following the merger of nine financial institutions with competences in investment, corporate and retail banking.

  • ASSBIFI stakes N40b on Unity Bank shares

    ASSBIFI stakes N40b on Unity Bank shares

    •Okays Oyinkansola as new president

    The the Association of Senior Staff of Banks Insurance and Financial Institution (ASSBIFI) is to take about 57 per cent (worth over N40 billion) of the 50 per cent Unity Bank’s shares to be acquired by the Trade Union Congress (TUC).

    At it last congress in June, TUC disclosed its plans to acquire about 50 per cent of Unity Bank shares worth about N80 billion.

    At a Special Delegates Conference in Abeokuta, ASSBIFI National President Comrade Olusola Salako said: “We are at the forefront of this deal and it is for the betterment of our members.”

    He said the N40 billion would come from workers’ contributions and support from development partners.

    The union also approved the nomination of Comrade Oyinkan Olasanoye as its next president in November when Comrade Sunday Salako will hand over.

    Salako said: “At our delegates’ conference that will take place in Abuja by November 2016, the positions for president and treasurer  would not be contested for.

    “ I choose Comrade Oyinkan as my predesessor because of her integrity and faithfulness. No vacancy for that position until after six years.”

    The conference is tagged, “Trade union strategic role in growing the nation economy”.

    The outgoing President of ASSBI explained that Olasanoye is capable of piloting the affairs of the association.

    Salako, who has spent six years in office, appreciated God and  his members for their support.

    Oyinkan, who will be the first woman ASSBIFI President, also appreciated his members, especially the out-going Presdient for their trust in her.

  • Institute raises alarm over TUC/Unity Bank $1b deal

    Institute raises alarm over TUC/Unity Bank $1b deal

    The Institute of Credit Administration (ICA) has expressed worry over the propect of the $1bn investment being proposed by the Trade Union Congress (TUC) in Unity Bank Plc.

    The TUC through its consultant, Black Tritium Capital Management Limited, an equity and investment fund manager recently signed a deal to invest N80bn in Unity Bank Plc within the next three years and subsequently acquire 57 per cent equity holding, thus making it the majority shareholder of the financial institution.

    But speaking with The Nation at the weekend, the Registrar/CEO of ICA, Prof. Chris Onalo said ordinarily the institute would not have commented on the deal if it was convinced that it is in the best interest of the banking consuming public.

    Waxing philosophical, the ICA boss said, the proposed $1bn deal was both a mixture of good and bad news. “To Unity Bank, the new stream of investment will obviously help to shore up its capital base to an appreciable level but there is more to banking than raising capital,” he said.

    Justifying the reasons why ICA had to raise the red flag over the deal, Onalo said as an institute which tracks credit procedures and processes in all sectors of the economy including the public and the organised private sector, it felt obliged to take a position because the proposed $1bn deal is such a significant investment.

    While noting that N80bn will give TUC a very strong leading position in the affairs of the bank as a majority shareholder, he was, however, quick to add that judging by TUC’s pedigree it is not certain if it can bring any value addition to the bank.

    “It is very probable that TUC doesn’t have domain expertise in the area of banking and as such may not be able to improve on the bank’s fortunes on the long run. We’re lost as to what domain expertise TUC has to back up such deal,” he said.

    Raising some posers, he said: “Is it salary accounts that the banks is looking to have? Is that what the bank needs to strengthen the bank?”

    There more negative implications of the deal than there are positives, he stressed.

    “The public perception of TUC is not cheery. Consequently, there will be negative perception of the banking public against Unity Bank. This is what  Nigerians need to worry about.”

    TUC as a majority shareholder of the bank is going to affect the credit culture of the bank and this must be avoided, he stressed. “Going by the pedigree of TUC, they have not been able to prove to the public that they have the requisite skills to manage a bank of such magnitude.”

    The credit expert who observed that the details of the deal was hazy, said ordinarily it ought to have been cleared by regulatory agencies in the financial and banking sector, especially the Central Bank of Nigeria.

  • Investor eyes Unity Bank

    Investor eyes Unity Bank

    Unity Bank Plc has forged a strategic alliance with Black Trituium, equity and investment fund manager, to enable them reposition the lender.

    The Nation learnt over the weekend that the new investor is committed to making significant equity investment in the bank.

    This strategic alliance will expand Unity Bank’s business scope, strengthen its capital base and support the bank’s retail strategy while meeting the investment objectives of Black Trituium.

    The Black Trituium manages funds for individuals and institutions such as Trade Union Congress (TUC) .

    The collaboration with Unity Bank is expected to expand the retail and Small and Medium Enterprises segment of the bank.

    Investment analysts see this as a unique opportunity that has the potential of broadening the bank’s customer base and provide long term stakeholder value.

    Furthermore, given the current economic outlook, this strategic alliance will come with immediate benefits that will enhance the capacity of the bank to meet the needs of its banking public.

    The alliance will also support government’s initiatives aimed at driving growth in the real sector through Small and Medium Enterprises (SMEs) and retail products, with particular focus on the agricultural sector.

  • TUC to acquire 57% stake in Unity Bank

    TUC to acquire 57% stake in Unity Bank

    The Trade Union Congress (TUC) is to acquire 57 percent stake  in the Unity Bank.  This is to ensure the welfare of its members and to reposition the union, its President, Bobboi Bala Kaigama has said.

    Kaigama disclosed this in his welcome address at the ongoing 10th Triennial National Delegates Conference in Abuja yesterday.

    He assured that his members would not suffer after retirement, promising that they would  enjoy the fruits of their labour.

    His words:“Through the TUC economy, we are on the verge of acquiring major shareholding in Unity Bank Plc. We have a memorandum of understanding (MoU) with the management and the process is on. We will tag it as Nigerian workers’ bank and will let Nigerians know that we have a bank in place. To build a better Nigeria, we in TUC shall move from just being spectators in the Nigerian economy to becoming investors in the Nigerian economy. We can no longer afford to sit on the sidelines and watch helplessly for others to decide our future and the future of our families. We must take our future into our hands. To achieve this, join me in building the TUC economy.

    “We believe that through this innovative and bold move by TUC, we see a Nigeria where productive enterprise flourishes in an atmosphere of mutually beneficial industrial harmony and cohesion between the government, private employers and labour. We shall see a Nigeria where unions are better respected not just for their representation of the masses but also for their economic might and prowess; and their partnering with government to ensure rapid development of the nation.”

    He argued that the step is to ensure TUC becomes part of building a country that is devoid of injustice, a country that creates and ensures job security, refrain from money laundering and corrupt practices. “A country that recognises the market men, women and peasant, funds education, builds and upgrade infrastructure and the health sector on a regular basis,” he said.

  • Unity Bank posts N78.8b gross earnings

    Unity Bank posts N78.8b gross earnings

    Unity Bank Plc has announced its audited financial result, which showed gross earnings of N78.8 billion for the financial year ended December 31, last year, compared with N77 billion earned during same period of 2014.

    However, the Profit After Tax (PAT) dropped to N4.6 billion from N10.6 billion PAT recorded in 2014 financial year.

    The bank said 2015 performance was achieved in spite of the challenging operating environment characterised by a continued lull in the economic activities in the economy as well as major regulatory headwinds like the implementation of Treasury Single Account (TSA) that cut earnings during the period.

    The bank said its new management inherited huge legacy of non-performing loans from the general commerce and manufacturing subsectors and believes that the impairment charge in Year 2015 was necessary in order to give new breath of life to the institution.

    It said the new management is embarking on enormous tasks to position the lender for proper clean-up and de-risking of its balance sheet, to create huge businesses that will help drive its growth and transformation initiatives.

    The bank also grew its assets by seven per cent from N413 billion in 2014 to N443 billion in 2015, amid shrinking economic indicators, measurement and regulatory policies that affected deposit portfolio during the year under review.

    While commenting on the result, its Managing Director/CEO, Tomi Somefun noted that “with the bank’s repositioning efforts and consistent focus to tap into the emerging opportunities in the enlarged economic space within Nigeria, it is committed to deliver quality banking service to emerging sectors in retail/Small and Medium Enterprises, commercial and the agricultural value chain.

    The bank, she said, is 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 and build new clientele base.

    “With the bank’s capital raising exercise, the year ahead is bright as the effects of the on-going transformation initiatives will surely consolidate  Unity Bank as “a retail bank of choice”,  culminating in superior financial performance and values to all stakeholders,” she said.

    She disclosed that the bank relocated its head office to Lagos from Abuja in March this year, a step that has led to positive impacts felt by its businesses nationwide.

    “The bank is now in a better position to tap into the core commercial hub of Lagos by leveraging on the huge retail spin-offs/opportunities and harness the diverse business potentials provided by population, port and patents for excellent service delivery to its esteemed customers.  It has started to witness increased businesses from the corporate, commercial and retail segments of the market with a strong resurgence,” a statement from the lender said.

  • Unity Bank repositions, MD resigns

    Unity Bank repositions, MD resigns

    The Board of Directors of  Unity Bank is repositioning the lender  even as its Managing Director Henry James Semenitari resigned on Friday.

    This is after a successful recapitalisation and re-branding that evolved the bank into a profitable and customer-focused financial services company.

    Sources told The Nation that  Semenitari would be replaced by “someone from within who meets all the central bank of Nigeria (CBN) requirements”.

    “The board made a pre-emptive move based on the future direction of the company after a successful stint as MD by Semenitari with strong support of the board and executive management,” the source said.

    With an average professional banking experience of 24 years each, led by Thomas Etuh (Chairman) and Aminu Babangida (Vice Chairman), the bank’s board has a combined 120 years of experience with highly talented, leadership to drive growth and continued improvement in services to customers while upholding the principle of responsible banking practices.

    Furthermore, none of the banking regulatory institutions in the country – Central Bank of Nigeria (CBN), NDIC or Securities Exchange Commission (SEC)—has raised any concern over happenings in Unity Bank.

    The NDIC 2014 yearly report recently released gave the bank a clean bill of health.

    Unity Bank concluded a right issues and private placement of N39.224 billion last year, which was largely oversubscribed.

    The lender reported that net income rose 11 per cent to N8.23 billion in the half year 2015 period, despite the tight money and tough macro environment.

    Lenders are struggling with a 40 percent slump in oil prices in the past year and the depreciation of the currency by the Central Bank of Nigeria (CBN).

    The Central Bank also decided to set a unified cash reserve ratio for public- and private-sector funds at 31 per cent to improve the transmission of monetary policy. Some banks say this has reduced their ability to earn interest income by making loans as funds sterilised by the CBN sit idle.

    Unity Banks fee and commission income increased by 23 per cent to N4.66 billion to offset the dip in interest income this year from the earlier period.

    Total assets increased by 4 percent to N429.6 billion, while cash and cash equivalents stood at N23.46 billion as at June 30, this year.

    Unity Bank Plc came into existence from one of the largest mergers in Nigeria’s banking history.

    The bank has developed competences in investment, corporate and retail banking, since commencing operations in January 2006 following the merger of nine financial institutions.

    It is now one of the leading retail banks in Nigeria with 256 business offices and cash centres spread across the 36 states of the federation.

    Sources also say the Unity Bank board has employed the services of audit and consulting firm Price Waterhouse Coopers (PwC) to improve processes and strategies in the banks SME, Agriculture and rural development sectors.

  • Unity Bank board sends MD on compulsory leave

    Unity Bank board sends MD on compulsory leave

    The Managing Director of Unity Bank Plc Mr. Henry Semeniteri is fighting the battle of his banking career as he has been placed on compulsory leave by the board of the bank.

    The Nation reliably gathered that Semenitari whose 10-day compulsory leave has elapsed has had the leave further extended “to allow for time to investigate allegations against him by some staff of the bank.”

    Allegations against Semenitari were said to have been levelled by the workers of the bank who took the allegations to a former Nigerian president, who has a large stake in the bank.

    The ex -president in turn directed the Chairman of the bank, Mr. Thomas Etuh to engage forensic auditors to investigate the allegations.

    At the end of the initial forensic audit of the allegations leveled against Semenitari, “some cases of discrepancies” were discovered in the running of the bank, thus prompting the board of the bank to force him to embark of compulsory leave to allow for more detailed investigation of the allegations.

    The Nation gathered that some of the allegations against Semenitari included spending of about N100 million on bullet proof vehicles, payment of productivity bonus allowances to some workers and indiscriminate sack of workers without recourse to the board of directors.

    A source at the bank told The Nation that Semenitari was still entitled to over 30 days official leave but that the board forced him to proceed on an initial 10 days leave which elapsed last week.

    The source noted that the bank was being cautious in the way it handled the matter not to damage the fragile reputation of the bank and that the Central Bank of Nigeria (CBN) was paying close attention to the matter.

    However, there are strong indications that he might likely resume work at the end of his current compulsory leave but what happens thereafter is for the board to decide.

    Aisha Azumi Abraham, has been appointed Acting Managing Director/CEO of Unity Bank Plc pending the resolution of the crisis.

  • N2b facility pits Unity Bank against Sterling Bank

    N2b facility pits Unity Bank against Sterling Bank

    Two lenders, Sterling Bank Plc and Unity Bank Plc, are at loggerheads over N2 billion facility, despite of the intervention of the Bankers’ Committee.

    At the end of last month’s meeting of the committee in Abuja, both banks were accused of not showing sincerity in the way they have handled the matter.

    The investigating panel that listened to the lenders, directed both banks to “go back and discuss amongst themselves as they had not shown sincerity on the matter.”

    The Nation gathered that at the last June meeting of its Ethics and Professionalism sub-Committee, the Bankers’ Committee went also ruled that Unity Bank was under obligation to honour its Advanced Payment Guarantee (APG) to Sterling Bank and that Unity Bank should provide certificate of work done during the life of the APG by its customers to be able to ascertain the amount outstanding on the APG which could be legitimately claimed within the validity period of the APG.

    The banks’ customers were admonished by the Investigating Panel “to act in an ethical manner” and frowned at one of the customers Loh & Or Construction for failing “to do what was expected of it and also failed to honour the invitation of the arbitrators that were appointed in line with the contract.”

    While aligning with the decision of the panel on the case, the Sub-Committee on Ethics and Professionalism of the Bankers’ Committee wondered why Unity Bank “would refuse to honour its guarantee, as guarantees are payable on demand.” The sub-committee also concurred with the investigating panel that the case in court had nothing to do with the APG.

    The sub-Committee also ruled that “the amount covered by the Guarantee shall, however, be progressively decreased in terms of the value of work executed by the contractor within the life of the Guarantee” implying that the claims made by Sterling Bank needed to be reviewed.

    Sterling Bank Plc had petitioned Unity Bank Plc for the failure of Unity Bank Plc to settle obligations arising from Guarantee Nos UB/APG/338/Makurdi/6978/06/2013 and UB/PB/338/Makurdi/6977106/2013 issued in favour of Quintec Ltd/Sterling Bank Plc on behalf of LOH & OR (NIG) LTD. Both guarantees were each for the sum of N1,038,463, 521.66.

    Sterling bank had told the Investigating Panel that “Quintec Ltd (contractor), a customer of Sterling Bank Plc was awarded a contract by the Central a Bank of Nigeria for the development of a Branch building at Lafia, Nasarawa State with the original completion date of 25 April, 2014 was later extended to 27 March, 2015 by the CBN vide letter dated 31 March, 2014.”

    Sterling bank stated that a major portion of the project was sub-contacted by the contractor to Messrs LOH & OR Construction (Nig) Ltd, a customer of Unity Bank Plc and as “per the work schedule, the sub-contractor was expected to have completed procurement and installation of the materials by January 2014, a time line which was not achieved”.

    Due to the delay and the threat by the CBN in its letter dated April 22, last year to enforce contractual sanctions culminating in the determination of Quintec’s services, the contractor was constrained to request a call on the Guarantees and on May 5, 2014, Sterling Bank issued a Notice of Default to Unity Bank advising a seven day period for LOH & OR Construction to remedy the breach failing which the guarantees would be called in.

     

    The sub-contractor’s (LOH & OR Construction (Nig) Ltd) bank (Unity Bank) responded vide letter dated 14 May last year requesting 21 days to enable its customer resolve the issues but in a subsequent letter dated 20 May last year, Quintec Limited advised Sterling Bank of the termination of the sub-contract with LOR & OR Construction Nig. Ltd and reiterated its earlier position that the Guarantees should be called.

     

    Based the insistence of Quintec, Sterling Bank Plc in a letter dated 23 May last year demanded the liquidation of the guaranteed sum within the 14 days. “However, Unity Bank in acknowledgement letter dated 2 June, 2014 requested an extension of the APG and Performance Bond for 120 days from July 2014 on behalf of its customer – LOH & OR Construction, who promised to resolve issues with Quintec Ltd.”

     

    Unity Bank was advised of Sterling Bank’s inability to accede to the request in a letter dated 5 June, 2014 on account of the Contractors’s position, stating that the demand notice dated May 23, 2014 would lapse on June 6, 2014 and that Unity Bank was expected to make good its obligation. Follow up letters dated 17 June 2014 and 25 June 2014 were subsequently sent to Unity Bank stating Sterling Bank’s intention to refer the matter to the sub-committee on Ethics & Professionalism for redress.

     

    12. It was on the basis of this that Sterling Bank approached the Sub-committee for redress, stating that: Unity Bank’s liability under the APG and PB was N841,402,974.73 as at 6 June, 2014; that Unity bank’s failure to meet the said obligation after the 14-day notice period gave rise to the interest obligation which accrued at the commercial rate of 23 per cent per annum.

     

    Sterling bank added that the materials delivered in respect of the sub-contract financed by it “was N197,060,547.27 based on the sub-contractor’s pricing. The Client paid N285,620,232.67 in respect of the work of which N270,000,000.00 was deposited at Sterling Bank” and as a result, “Unity bank was liable for sum of N841,402,974.73 plus accrued interest at 23 per cent per annum from 6 June, 2014.”

     

    On its part, Unity bank told the Investigating Panel that Messrs LOH & OR Construction Limited is its customer and that in the course of the relationship, “the bank availed the customer several facilities amongst which are the Advanced Payment Guarantee (APG) and Performance Bond (PB) in the sum of N1,038,463,521.66 each- the subject of this petition.”

     

    The issuance of the APG and PB Unity bank said was as a result of a contract awarded to a company called Quintec Limited by the Central Bank of Nigeria to develop a branch builnding in Lafia, Nassarawa State. Quintec (contractor) sub-contracted the Electrical, Mechanical as well as the supply and installation of Finishing Materials to LOH & OR Construction Nigeria Ltd.

     

    Subsequently, LOH & OR Construction Nigeria Ltd approached Unity Bank for the issuance of the APG and PB in favour of Quintec and their Bankers – Sterling Bank Plc, which was issued on June 26, 2013. On the strength of the APG and PB, the beneficiaries (Sterling Bank/Quintec Ltd) released the sum of N1,038,463,521.66 to the bank (Unity Bank) for onward disbursement to the customers.

     

    Unity Bank stated that “it was agreed between the customers and Quintec that payments arising from valuations done by the CBN consultants will be made directly into Sterling Bank Plc in full to reduce Unity Bank’s liability under the APG and PB.”

     

    Consequently, the customers were mobilised to site and they commenced work, “rendering qualitative works to the extent that site was adjudged the best and most progressed of all similar projects awarded by the CBN.” Unity bank said it was therefore, “surprised to receive Sterling Bank Plc’s letter dated 5 May last year informing Unity Bank of the customers’ default in the execution of the sub-contract. The beneficiaries further contended that all efforts to make the customers meet their obligation failed, hence they had to call in the APG and PB.”

     

    Unity bank admitted that “in a letter dated 17 June 2014, Sterling Bank demanded for the payment of the guaranteed sum balance and interest accrued at commercial rate from 6 June, 2014 and that “consequent upon the above Unity Bank immediately caused an investigation into the matter in order to ascertain what actually happened and the level of work executed by the customers.”

     

    Their investigations they said “revealed that there were disputes, accusations and counter-accusations between the customers and Quintec which resulted in the frustration of the contract.” This informed Unity Bank’s request on the customer’s behalf for an extension of the APG and PB to allow some time to sort out these issues while the customers continued with their obligations.”

     

    Unity Bank insisted that its “obligation under the APG and PB was for the payment of the sum outstanding not defrayed from the sum advanced to the customers as a result of the customer’s default. According to paragraphs 6 and 7 of APG and PB respectively where it was made explicit that “The amount covered by the Guarantee shall, however, be progressively decreased in terms of the value of work executed by the contractor to the employers under the contract”.

     

    Unity bank expected that before any call was made on it for the payment under the APG and PB, all works carried out by the customers ought to have been ascertained and valued. “This was not done by Sterling Bank Plc rather Unity Bank was called upon to pay an undisclosed “amount outstanding under the APG and accrued interest at 23 per cent per annum from 6th June, 2014”.

     

    In conclusion, Unity Bank stated that: much as it remained fully committed to its obligation under the APG and PB, the bank could not make payment of an undisclosed and unverified sum, which Beneficiaries had never stated in their demand; there was no understanding and/or commitment between the bank and the beneficiaries in respect of any interest element in the transaction. The bank never consented to same and such term was never in the APG and PB it issued; Quintec failed to remit funds paid by the CBN into Sterling Bank Plc to reduce the value of the APG as initially agreed by the parties. “This was what actually frustrated the contract between them; that Unity bank is only liable to the beneficiaries in the sum of N282,324,118.92, representing the outstanding sum on the sum advanced to the customers under the APG and that in the spirit of fairness, the bank recommended that an all parties meeting be convened in order to reconcile the obligations of relevant parties.

     

    The investigating Panel meeting of march 24, 2015, identified as areas of contention:

     

    1. How was the value of N282 million due to sterling Bank determined?

     

    2. Why did Sterling Bank demand an APG/PB from Unity Bank and why did Unity Bank refuse to honour its guarantee?

     

    3. What led to the determination of Loh&Or Construction’s contract? It was reported that the goods were still in China because Quintec had stated it would not take delivery of goods since the contract had been terminated.

     

    However when contacted, a staff of Unity Bank who pleaded to remain anonymous because he was not permitted to speak to the press on the matter told The Nation that “Unity Bank has taken advantage of the opportunity given by the Sub-Committee for us to bring up fresh facts that could lead to the change or retraction of the decision. Accordingly, the decision of the Sub-Committee will not yet be binding on the bank, since the Sub-Committee still has to review the fresh facts provided by the bank. We are confident that the outcome of the review will be favorable to the bank.”

     

    The Unity Bank official added that “the issues relating to the settlement of obligations under the Guarantee is already subjudice, in view of existing litigations and Arbitration known to all the parties. Therefore all parties should refrain from actions and making statements that could be contemptuous.” He noted “as soon as the Bankers Committee gets our letter revealing fresh facts of another suit, we are confident that the Sub-Committee will rescind its decision and allow for the Legal process to take its natural course. “

     

     

  • Unity Bank eyes N30b profit, N110b earnings

    Unity Bank eyes N30b profit, N110b earnings

    The management of Unity Bank Plc yesterday rolled out its short-term financial forecasts indicating that the bank will grow its top-line and profitability consecutively over the next three years to about N110 billion and N30 billion respectively.

    Managing director, Unity Bank Plc, Mr Henry Semenitari, who addressed the investing public at the Nigerian Stock Exchange (NSE) yesterday, said the bank would achieve its financial targets as these are anchored on a viable growth strategy, which will ensure increasing operational efficiency over the years.

    He outlined that the bank plans to achieve profit before tax of N20.26 billion in 2015 and subsequently scale up to N26.13 billion and N30.41 billion in 2016 and 2017 respectively.

    He added that the bank plans to grow top-line earnings consecutively to N76.26 billion in 2015 and N88.52 billion and N109.49 billion in 2016 and 2017 respectively.

    Semenitari assured that the bank has been well-positioned to achieve its financial targets noting that the rebound from a loss position of N33.64 billion in December 2013 to a profit position of N13.6 billion before tax in 2014 financial year evidenced the remarkable turnaround the bank had witnessed.

    According to him, agriculture sector remains a major strategic focus of the bank based on its historical strength while it would also focus on emerging middle market entrepreneurs to remain retail bank of choice.

    He pointed out that the recent share reconstruction by the bank was done to ensure that the bank can begin dividend payment in the nearest future and create better value for all shareholders.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2014 showed that gross earnings rose from N62.83 billion in 2013 to N77.07 billion in 2014. Interest income had grown from N52.2 billion in 2013 to N62.64 billion in 2014 while net interest income rose from N30.14 billion to N45.45 billion. Fee and commission income stood at N10.71 billion in 2014 as against N7.33 billion in 2013. Other incomes totaled N3.72 billion in 2014 compared with N3.30 billion in 2013.

    After taxes, net profit stood at N10.69 billion in 2014 compared with net loss after tax of N22.58 billion in 2013. Earnings per share thus turned positive with a modest 17.45 kobo in 2014 in contrast with loss per share of 58.74 kobo recorded in previous year.

    The balance sheet of the bank also firmed up substantially. Total assets rose to N413.31 billion in 2014 as against N403.63 billion in 2013. Total liabilities meanwhile dropped from N375.42 billion in 2013 to N337.04 billion in 2014. Shareholders’ funds closed 2014 at N76.26 billion as against N28.21 billion in 2013.

    Unity Bank had raised N39.22 billion new equity funds in 2014 through a combined rights issue of N19.22 billion and special placement of N20 billion.