Unity Bank Share Price Spikes 36% on Heavy Positioning
Unity Bank Plc’s market price beats the bearish trading trend seen in the local bourse following relatively strong demand for the Nigerian lender’s shares on the Nigerian Exchange (NGX).
In a swoop, the retail lender’s market valuation skyrocketed by about 36% as investors load up the bank’s shares. Recall the management announced a moderate earnings jump in the third quarter of the financial year 2022 – amidst macroeconomic and regulatory uncertainties.
In its unaudited financial statement for nine months, the bank attributed its 17% year-on-year gross earnings growth to a deep footprint in Agriculture financing while building on risk-weighted assets.
Apparently, there was higher investors’ positioning in the bank’s share amidst downward share pricing in the local bourse. Last week, the stock market lost about N164 billion
In the third quarter of 2022, Unity Bank declared a N2.2 billion profit, with a 17% growth in gross earnings to N42.2 billion for the same period, as against N36.2 billion in the corresponding period of 2021.
The bank said the increase can be attributed to new products that are focused on deep penetration and driving volume in the retail market space.
The bank’s profit before tax expenses inched higher by 5% to close at N2.206 billion, according to an unaudited financial statement for the 9-months.
It ended with a marginal growth in its profit after tax obligation, up to N2.029 billion, representing a 5% rise from N1.9 billion recorded in the same period of 2021.
Unity Bank Plc has N284.2 billion in its loan book, which represents a 6% spurt from the N269.3 billion recorded in the corresponding period of 2021, even as the lender maintains strict compliance with the prevailing prudential guidelines.
Other key highlights of the 9-month financials include customer deposits of N334.7 billion which represents a 4% increase from N322.3 billion in the corresponding period.
Management said the position underscores the increasing uptake of the market for the Bank’s products innovation, and mass-market-oriented retail focus that continues to boil wide acceptance across various segments of the mass market.
On Friday’s close, Unity Bank Plc’s stock market valuation inched to about N6.7 billion on 11.7 billion outstanding shares. READ: Stocks Edge Higher as Investors Position for Earnings Season
Keeping a tab on Nigerian banks’ share price movements has been a pretty interesting idea for investors. Some analysts told MarketForces Africa that a large number of listed companies are worth more as private entities. #Unity Bank Share Price Spikes 36% on Heavy Positioning