Unity Bank Spikes 44% After Earnings Forecast
EQUITY TRACKER: Shares of Unity Bank Plc spiked by 44% after its earnings release after the Nigerian lender released its third quarter of 2023, data screened from the Nigerian Exchange showed.
In its regulatory filing, the bank told Nigerian Exchange that it expects its gross earnings to print at N19.864 billion in the third quarter of the year.
It estimated a profit after tax of N240 million in the same period, after it made N22.30 million tax profit against a pre-tax profit of N262.4 million.
The bank’s year-to-date return rose to 22% after lender’s the share price inched to N0.72 on Friday.
The bank share price had traded at 50 kobo floor ahead of the earnings release. The upbeat in profit performance could be one of the major catalysts propelling rerating. How long this will last will determine its market valuation.
In the first quarter of 2023, Unity Bank saw a pretax profit of N1.14 billion, up 21% above N945 million in the comparable period in 2022.
Net interest income grew to about N5.5 billion year on year, from N4.80 billion in the comparable period – representing about 15% annual growth, its unaudited financial statement reviewed by MarketForces Africa shows.
With about 12 billion outstanding shares, Unity Bank plc’s valuation has now inched to N8.42 billion on Friday. According to its earnings forecast, cash and cash equivalent is expected to settle at N74 billion.
Investors traded 4.963 million shares in the local bourse at a transaction value of N3.573 million. #Unity Bank Spikes 44% After Earnings Forecast Access Bank Controls 19% of Nigerian Banking Assets
