Home Business UNITY BANK DECLARES N27.5B GROSS EARNINGS IN H1’2023
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UNITY BANK DECLARES N27.5B GROSS EARNINGS IN H1’2023

Unity Bank Plc has declared N27.5 billion in gross earnings in its Half-Year unaudited financial statement submitted to the Nigeria Exchange Group Limited.

It was also announced that the bank increased its deposits to N333.38 billion in the first half of the year, marking a slight uptick of 2% compared to the N327.42 billion recorded in H1’22.

This growth in deposits reflects the bank’s steady progress in expanding its presence in the retail sector through a diverse range of banking products tailored to various retail market segments.

Other notable points from the unaudited financial statement include gross income and total assets, which stood at N27.5 billion and N512.1 billion, respectively, compared to N27.4 billion and N510.1 billion in the previous period. The net loan portfolio experienced a significant 31% reduction, dropping to N198.6 billion as of June 30, 2023, from N289.4 billion as of December 31, 2022. The bank’s non-performing loan (NPL) ratio remained below 3%, and its liquidity ratio remained strong at over 45%.

However, the bank’s profit for the period was impacted by foreign exchange revaluation due to Nigeria’s recent FX liberalization policy, resulting in a revaluation loss of N35 billion during the period.

Nevertheless, the retail bank achieved a notable 17% increase in FX trading income, reaching N239.8 million compared to N204.4 million in the same period of 2022, highlighting its strategic emphasis on diversifying and expanding its revenue streams.

Furthermore, fees and income from commissions also experienced a 10% growth, reaching N3.5 billion compared to N3.2 billion in the corresponding period of 2022, driven by the growing popularity of its digital banking platforms and increased customer acquisition in the retail sector.

Discussing the financial results, Unity Bank Plc’s Managing Director/CEO, Mrs. Tomi Somefun, acknowledged that the challenging operating environment had impacted the bank’s performance, particularly in income generation, due to the revaluation of the bank’s net foreign liabilities caused by the Naira devaluation during the period.

Mrs. Tomi stated, “In light of the ongoing FX revaluation in the financial system, the impact we are experiencing is market-driven and can be adjusted as positive economic outcomes are anticipated from government policies in the near term. Nevertheless, the negative shareholders’ fund has significantly improved through a capital injection of N135 billion, reducing the negative shareholders’ fund from (-ve) N275 billion at the end of the financial year in December 2022 to (-ve) N178 billion as of June 30, 2023, after accounting for the FX revaluation loss incurred in Q2/2023. We are, however, fully committed to our recapitalization program and anticipate doing business as expected in the rapidly growing Nigerian markets very soon.”

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