Home News Unity Bank Profit Falls More than 38% to N20.86 Billion

Unity Bank Profit Falls More than 38% to N20.86 Billion

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Unity Bank Profit Falls More than 38% to N20.86 Billion

Unity Bank Profit Falls More than 38% to N20.86 Billion

Unity Bank Plc. profit falls more than 38% in financial year 2020 to N20.86 billion following the outbreak of coronavirus pandemic which took a heavy toll on the lender’s operation.

In its audited financial statement submitted to the Nigerian Exchange, the bank announced that its total expanded 68% to N492.02 billion from N293.052 billion in 2019.

According to the figure, the increase in the bank total assets was driven by addition to loan book and significant uptick in other assets.

Unity Bank customers’ deposits surged 34.4% to N356.62 billion from N257.69 billion posted in the corresponding period of 2019.

In 2020, earnings profile was affected as the bank delivered gross earnings of N42.71 billion, falling below N44.59 billion recorded in 2019.

Following the plunge, profit after tax stood at N2.09 billion, while profit before tax closed at N2.22 billion during the year under review.

Its net operating income rose to N25.46 billion from N23.21 billion in the corresponding period of 2019, representing a 9.71% increase.

This is even as the net interest income recorded a significant jump, as it rose by 7.60% to N17.75 billion from N16.49 billion in the corresponding period of 2019.

The bank’s gross loans portfolio increased by 92.9% to N206.2 billion in the review period, from N106.9 billion in 2019.

The Managing Director/Chief Executive Officer of the bank, Mrs. Tomi Somefun, said the results showed the resilience during times of uncertainties and ability to focus on key balance sheet items to maintain growth trajectory.

“Consequently, for the year under review, the opportunities to create more quality assets for the business, thought to have sustainable impact, informed part of choices made.

“And we have seen some encouraging market uptake in this regard, apart from the benefits to the enterprise bottom-line that have also started trickling in.

“The bank deployed new products and augmentation supported by omni-channel, USSD promotions and other channels to enhance service delivery efficiency, drive income generation capacities and enhance steady balance sheet growth,” Somefun said.

She said the bank would latch on targeted strategies to deploy significant investment in technology in order to ride the waves of the COVID-19 pandemic.

According to him, the bank will focus on achieving major efficiency gains, deepening its retail footprints and penetrating identified cluster market segments, to tap into various youth markets.

“The bank is also looking to consolidate the gains from its core business areas and niche in the agribusiness sector. The bank has solidly financed over one million farmers over the past three years.

“These farmers cut across several primary crop production such as rice, maize, cotton, wheat, sorghum, etc coupled with their rich value chains.

“We hope to continue to expand on this as we play our part in driving the country’s quest for self-sufficiency in food production,” she added.

Similarly, Mr. Usman Abdulqadir, Unity Bank, Executive Director, said the bank would change the narrative in the agriculture sector by focusing on younger farmers.

Abdulqadir said the bank would focus on younger farmers below 40 years with better knowledge of technology and best practices to boost yields.

He said the bank wanted to make the younger generation interested in agriculture, noting that 65 % of the nation’s population was within 18 and 35 years.

Read Also: FBNHoldings Profit Jumps 22% to N89.7 Billion in FY2020

Unity Bank Profit Falls More than 38% to N20.86 Billion

Note to Readers: MarketForces Africa is writing a SPECIAL REPORT covering 5-10 years on Unity Bank and it will be published on or before Monday.

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