The Nation Newspaper

Tag: Unity Bank

  • Share reconstruction: Unity Bank to cancel 105.2b shares

    Share reconstruction: Unity Bank to cancel 105.2b shares

    Unity Bank Plc will reduce its outstanding shares by some 105.2 billion ordinary shares under the ongoing share capital reconstruction. The Nigerian Stock Exchange (NSE) will today place Unity Bank on full suspension to facilitate the share reconstruction.

    The shares of Unity Bank will be placed on full suspension throughout this week, implying that there will be no transaction on the stock during the period.

    A regulatory filing obtained at the weekend indicated that Unity Bank will issue one new share in replacement for 10 shares already held by the shareholder.

    Unity Bank currently has total outstanding shares of 116.89 billion ordinary shares of 50 kobo each. With the one-for-10 exchange ratio, the bank will have 11.69 billion ordinary shares by the end of the share restructuring, cancelling about 105.2 billion ordinary shares.

    Normal transaction in the shares of Unity Bank is expected to resume on Monday, April 20, 2015.

    Market analysts said the share reconstruction would enable the bank to consolidate its recovery and hasten the accretion of returns to shareholders.

    Unity Bank  had made a remarkable turnaround in 2014 as the commercial bank returned to the green with a pre-tax profit of about N14 billion. Against the background of loss before tax of N33.64 billion in 2013, Unity Bank rode on the back of improved capital base, growing top-line and better cost efficiency to record a full-year profit before tax of N13.64 billion.

    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 bounces back with N13.6b profit

    Unity Bank Plc made a remarkable turnaround in 2014 as the commercial bank returned to the green with a pre-tax profit of about N14 billion. Against the background of loss before tax of N33.64 billion in 2013, Unity Bank rode on the back of improved capital base, growing top-line and better cost efficiency to record a full-year profit before tax of N13.64 billion.

    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.

    In a recent review, managing director, Unity Bank Plc, Mr. Henry Semenitari, said the bank’s growth was founded on the improving fundamentals and would not be impaired by any loss or impairments going forward.

    According to him, the bank’s current growth strategy is anchored on strict operational efficiency in line with its chosen business model and strategic intent of being the leading retail bank in Nigeria.

    “The growth is expected to continue in the foreseeable future, no loan loss, no impairment, no termite will eat into this profit because it’s cash income,” Semenitari assured.

    He said the bank has what it takes to achieve its vision of being the retail bank of choice by 2020 citing its vast nationwide branches, human resources, improved capital base and committed executive and non-executive directors.

    He outlined that Unity Bank is already one of Nigeria’s leading retail banks in the country with 240 business offices spread across the country and ranking as Nigeria’s 7th largest bank by business locations adding that the bank would increase its branch network in the nearest future.

    He pointed out that the bank has carved out a niche for itself as a leading bank in small and medium enterprises, agriculture and rural economy financing noting that the bank is leveraging on its historical

     

  • CBN approves chairman, vice for Unity Bank

    CBN approves chairman, vice for Unity Bank

    The Central Bank of Nigeria has approved the appointment of Mr Thomas A. Etuh and Alhaji Aminu Babangida as Chairman and Vice Chairman of the Board of Directors of Unity Bank Plc.

    A statement from Unity last night, said this approval was contained in a letter to the Bank dated January 23, 2015 and signed by the Director of Banking Supervision, Mrs Tokunbo Martins.

    It noted that “their appointments followed the resignation of the former Chairman, Alhaji Lamis Shehu Dikko from the Board in December 2014 to pursue his political aspirations.”

    Unity Bank said Mr Etuh, who was appointed pioneer Vice Chairman of the Board of Directors, on April 22, 2014 has varied experience, gained from over two decades of contribution to the public and private sectors of the economy, especially the agric sector of the economy.

    The new Vice Chairman Alhaji Aminu Babangida, is the son of former military Head of State, General Ibrahim Babangida, an Entrepreneur and a co-founder/CEO of Phoenix Energy, Abuja. He was appointed to the Board of Unity Bank Plc in 2011.

    He has held chairmanship and membership positions in a number of board committees, including Credit Committee, Audit Committee, Information Technology & Strategy Committee, among others.

  • Unity Bank assures on continued growth

    Unity Bank Plc would sustain the improvement in its earnings and further consolidate its recent turnaround to deliver values to all stakeholders.

    On the heels of 857 per cent growth in net earnings in the third quarter, the management of the bank has assured that the profit growth was a glimpse of the strategic turnaround of the bank, stating that the bank has started on the path of irreversible growth.

    Third quarter results of Unity Bank for the period ended September 30, 2014 showed that it made a profit after tax of N11.05 billion, an increase of 856.83 per cent on N1.15 billion recorded in comparable period of 2013. Key extracts of the interim nine-month report showed that gross earnings rose to N48.14 billion in third quarter 2014 as against N45.40 billion recorded in comparable period of 2013. Net interest income grew by 23.36 per cent from N20.83 billion in 2013 to N25.70 billion in 2014. Total operating income also improved by 22.9 per cent to N35.06 billion compared with N28.54 billion in corresponding period of 2013. Total operating expenses reduced by 22.1 per cent from N26.8 billion to N20.9 billion.

    These underpinned a leap in pre-tax profit from N1.20 billion in third quarter 2013 to N12.02 billion in third quarter 2014, representing an increase of 897.6 per cent. Profit after tax also jumped by 858.8 per cent from N1.15 billion to N11.02 billion. Further bottom-line analysis showed that weighted average cost of funds improved to 5.0 per cent in 2014 as against 6.8 per cent in 2013, outperforming the industry average of 5.5 per cent. Cost to income ratio also improved to 60.03 per cent as against 95.7 per cent, significantly better than the industry average of 71.5 per cent. Net interest margin stood at 66.3 per cent in 2014, an improvement on 55.3 per cent recorded in previous year and industry average of 63.5 per cent. Earnings per share improved to 28.76 kobo as against 4.40 kobo recorded in corresponding period of 2013.

    Managing director, Unity Bank Plc, Mr. Henry Semenitari, said the growth in the third quarter was founded on the improving fundamentals of the bank and would not be impaired by any loss or impairments going forward.

    According to him, the bank’s current growth strategy is anchored on strict operational efficiency in line with its chosen business model and strategic intent of being the leading retail bank in Nigeria. This strategy resulted in improvement in all the key indices as reflected in the third quarter of 2014.

    “The growth is expected to continue in the foreseeable future, no loan loss, no impairment, no termite will eat into this profit because it’s cash income,” Semenitari assured.

    He said the bank has what it takes to achieve its vision of being the retail bank of choice by 2020 citing its vast nationwide branches, human resources, improved capital base and committed executive and non-executive directors.

    He outlined that Unity Bank is already one of Nigeria’s leading retail banks in the country with 240 business offices spread across the country and ranking as Nigeria’s 7th largest bank by business locations adding that the bank would increase its branch network in  the nearest future.

    He pointed out that the bank has carved out a niche for itself as a leading bank in small and medium enterprises, agriculture and rural economy financing noting that the bank is leveraging on its historical position and spread to bridge the urban-rural gap in the economy while simultaneously reaching out to the un-banked populace in line with the national financial inclusion strategy.

    He noted that Unity Bank has a deliberate strategy of focusing on emerging middle market businesses with growth potentials across various sectors of the economy, especially agriculture stressing that the bank runs on its own strategy of exploring opportunities in undiscovered markets and running ahead of others in unlocking potential.

    He outlined that major successes recorded in 2014 highlighted increased confidence in the bank by all stakeholders citing the reopening of banking relationships with major government agencies that manage and regulate major developmental sectors such as oil and gas, ports authority, maritime and other infrastructural development agencies, raising of $120 million Tier 11 capital from Afrexim Bank, and oversubscription of the bank’s N40 billion rights issue and special placement offer.

    He added that Unity Bank is rated 3rd under the Central Bank of Nigeria (CBN) Commercial Agriculture Credit Scheme (CACS) with a total disbursement of N26.1 billion on about 65 projects while it has advanced discussion with the apex bank in accessing the SME special intervention fund from the CBN.

    He noted that the inclusion of Unity Bank as one of the component stocks for the Nigerian Stock Exchange (NSE) 30 index underscored its increasingly important role as a leading financial services company. The NSE 30 Index tracks the 30 most capitalised stocks on the NSE and it mostly influences the overall market situation at the stock market.

    Semenitari said the bank’s aggressive recovery drive has cut non-performing loans from more than 50 per cent of gross loans and advances to 20.4 per cent, assuring that the impact of the recovery drive will be felt more in the coming years.

    He said the bank is targeting a nonperforming loan-gross loans ratio of 10 per cent by the end of 2015 and which push this downward below the industry benchmark of five per cent by December 2016.

    “We are working on loans recovery, all the executives are involved, there is no hiding place for our debtors. We are not shy of giving loans, but then you must be sincere and be ready to pay back,” Semenitari said.

    Unity Bank plans to use the net proceeds of its N39.22 billion new issue for branch expansion, investing in human capital, and the development of information technology.

  • Unity Bank boosts capital with N39.2b

    Unity Bank boosts capital with N39.2b

    Unity Bank Plc has listed the supplementary shares from its recent combined rights and special placement offers, adding N39.22 billion in new equity funds to its capital base and similar amount to its market capitalisation.

    Unity Bank listed a total of about 78.45 billion ordinary shares of 50 kobo each at par value at the Nigerian Stock Exchange (NSE), conclusively rounding off its rights issue of 38.45 billion ordinary shares and special placement of 40 billion ordinary shares, both of which were offered at par value. The supplementary listing significantly impacted on the capital base of Unity Bank and its market capitalisation.

    Speaking at the NSE, managing director, Unity Bank Plc, Mr. Henry Semenitari, noted that the bank’s offers were oversubscribed, an indication of the investing public’s confidence in the bank and its growth agenda.

    He pointed out that the rights issue went across the shareholders of the bank and the entire rights were taken by local investors as there were no foreign investors.

    He said the bank decided on the new equity funds in order to accelerate expansion and create value for shareholders.

    According to him, the new equity funds would be used for branch expansion, investing in human capital, and the development of information technology.

    He said the bank would undertake share reconstruction given the size of its current outstanding shares. Yesterday’s listing brought the bank’s total outstanding shares to 116.90 billion ordinary shares of 50 kobo.

    Semenitari said the bank would explore all avenues to recover debts including the use of the Economic and Financial Crimes Commission.

    He also noted that the bank’s capital adequacy ratio was in compliance with regulatory guidelines adding that all the branches that the new management met when it came on board are operational and plans are ongoing to open more branches.

    In his remarks, managing director, APT Securities and Funds Limited, Mr. Garba Kurfi said Unity Bank has a bright future citing the third quarter result recently released by the bank.

    According to him, with the additional capital and the ongoing debt recovery by the bank, and with the bank’s results so far, the bank may likely reward its shareholder in the next two years.

    The third quarter result for the period ended September 30, 2014 showed that Unity Bank made a profit after tax of N11.05 billion, an increase of 856.83 per cent on N1.15 billion recorded in comparable period of 2013.

  • Unity Bank boosts capital with N39.2b new equity funds

    Unity Bank boosts capital with N39.2b new equity funds

    Unity Bank Plc yesterday listed the supplementary shares from its recent combined rights and special placement offers, adding N39.22 billion in new equity funds to its capital base and similar amount to its market capitalisation.

    Unity Bank listed a total of about 78.45 billion ordinary shares of 50 kobo each at par value at the Nigerian Stock Exchange (NSE), conclusively rounding off its rights issue of 38.45 billion ordinary shares and special placement of 40 billion ordinary shares, both of which were offered at par value.

    The supplementary listing significantly impacted on the capital base of Unity Bank and its market capitalisation and to some extent supported the rising aggregate market capitalisation of all quoted equities at the NSE.

    Speaking at the NSE, managing director, Unity Bank Plc, Mr. Henry Semenitari, noted that the bank’s offers were oversubscribed, an indication of the investing public’s confidence in the bank and its growth agenda.

    He pointed out that the rights issue went across the shareholders of the bank and the entire rights were taken by local investors as there were no foreign investors.

    He said the bank decided on the new equity funds in order to accelerate expansion and create value for shareholders.

    According to him, the new equity funds would be used for branch expansion, investing in human capital, and the development of information technology.

    He said the bank would undertake share reconstruction given the size of its current outstanding shares. Yesterday’s listing brought the bank’s total outstanding shares to 116.90 billion ordinary shares of 50 kobo.

    Semenitari said the bank would explore all avenues to recover debts including the use of the Economic and Financial Crimes Commission.

    He also noted that the bank’s capital adequacy ratio was in compliance with regulatory guidelines adding that all the branches that the new management met when it came on board are operational and plans are ongoing to open more branches.

    In his remarks, managing director, APT Securities and Funds Limited, Mr. Garba Kurfi said Unity Bank has a bright future citing the third quarter result recently released by the bank.

    According to him, with the additional capital and the ongoing debt recovery by the bank, and with the bank’s results so far, the bank may likely reward its shareholder in the next two years.

  • Unity Bank sacks 170

    Unity Bank sacks 170

    Unity Bank Plc has disengaged over 170  and have  recruited over 300 new ones, mostly at entry level.

    In a statement, the bank said: “The exercise is in a bid to right size its workforce and position the Bank for sustainable quality banking services across its entire branch network.”

    The development of the bank’s Human Resource, the statement added, is one of the key areas identified as part of the objectives that the bank’s capital raising will address.

    The Executive Director, Secretariat and Services, Mrs. Aisha Abraham, was quoted to have said: “Our people are our greatest assets; we consistently strive for training and rejuvenation of our workforce – constantly introducing a steady mix of promising young talents and experienced professionals. Our goal is to be able to offer quality services to our customers through a team of dedicated and resourceful staff at all times.”

    The quest for this the statement said has led “Unity Bank to carry out structural and personnel realignments with decision making and service delivery processes running along Strategic Business Units, a highly effective model that is business focused, leading to specialisation, better understanding of the market and responsibility accounting.”

    The right sizing is seen as a deviation from the traditional geographic business unit structure and is one of the changes Unity Bank has adopted to ensure that it has a 360-degree view of the market and proffer solutions that fit its vision.

     

     

  • Agencies affirm Unity Bank’s BBB- Rating

    Agencies affirm Unity Bank’s BBB- Rating

    Two rating agencies, Global Credit Ratings (GCR) and Data Pro Limited have affirmed the long-term national scale issuer ratings assigned to Unity Bank Plc of BBB-(NG) with the outlook considered as Stable.

    A statement from the bank said the rating is an indication that the bank has adequate protection factors and considered sufficient for prudent Long Term investment.

    In addition, GCR rated Unity Bank A3, while DataPro rated the Bank A2 for Short Term debts on the national scale.

    DataPro noted that Unity Bank showed fair balance sheet strength, operating performance and business profile. According to rating agency, “this institution, in our opinion, has an ability to meet its current obligations.”

    In its corporate credit rating report, Data Pro also said Unity bank’s strength lies in its good asset quality, geographical spread and robust and secured technological platform.”

    It added that “the bank has also advanced its risk management practices evidenced by complete overhaul of its Enterprise Risk Management policies, certification into the prestigious ISO27001:2005 and Payments Cards Industry Data Security Standards (PCIDSS) in order to ensure that customers’ information are always secured”.

  • Unity Bank’s capital raising plan advances

    Unity Bank’s capital raising plan advances

    Unity Bank Plc has said its plan to raise additional capital for its next stage of expansion has reached advanced stage.

    The bank’s Acting Executive Director, South, Mahmud Elems who disclosed this at the weekend during a briefing in Lagos, said investors have already signified interest in acquiring equity stakes in the bank adding that discussions were nearing conclusion.

    He also said existing shareholders have also made commitments to increasing their stake in the bank.

    According to Elems, the bank is perfecting its strategic plans, which would be unveiled to the public in the next few weeks adding that the lender has made a shift in focus, placing greater emphasis on the retail segment which would enable it serve more customers and add value to the economy.

    The bank, he added, would also be using the agency banking model to take banking services to the rural areas across the country.

    Head of Corporate Communications, Mrs. Theodora Amaechi said the bank is aiming to impact more on the economy with services that would reach the unbanked. She explained that the new focus was informed by CBN’s financial inclusion drive which seeks to reduce the percentage of the unbanked population.

    “We are strategising to ensure that Unity Bank becomes the retail bank of choice in Nigeria. To this end, the bank has developed new products that will suit its customers’ needs at a retail level and modified existing products to increase their competitiveness,” he said.

    The bank also plans to use the agency banking model and its branches in rural areas to create cheaper and easier access to financial services as part of the CBN Financial Inclusion Drive. The bank has already concluded plans for application of the model and has selected the agents who will take the service closer to the people.

    Amaechi said:“Unity Bank Plc stands a better chance of increasing its market share as a large number of the unbanked populace reside in the northern region of the country where the bank has a comparative advantage especially in terms of branch network.”

  • Unity Bank Plc records renewed bargain appetite

    Unity Bank Plc records renewed bargain appetite

    Nigerian stocks extend the prolonged losing streak, depressing the YTD gain further to close lower at +27.38% as against +42.50% posture recorded on June 11,2013.

    Despite this continued bearish trend on the Nigerian bourse, the following stocks in the table above experienced a gap-up pattern – an impressive bargain during today’s bearish session.

    A gap-up simply means a sharp northward move in the price of the stock, which signifies an unparalleled interest from the bargain investors. This usually happens when market’s expectation is higher or good news relating to earnings and other key fundamentals of the firm is about to hit market.

    Among the list of active stocks on the gap-up table, Unity Bank Plc and Mobil Plc recorded an exceptional trading pattern at the end of a bearish session. Both stocks experienced low gap-up but ended with maximum gains of +10.00% and +8.11% gains respectively.