Unity Bank Gross Earnings Hits N27.5bn In H1

Unity Bank Plc said its gross earnings grew to N27.5 billion in the first half of 2023 as against N27.4 billion in the same period in 2022.

The first Half (H1) results for the period ended June 30, 2023 released on the Nigerian Exchange Limited revealed that Unity Bank grew its deposits to N333.38 billion, representing a marginal increase of two per cent compared to N327.42 billion recorded in H1, 2022 in its H1 unaudited financial statement.

Other highlights of the unaudited financial statement include; gross income and total assets which recorded N27.5 billion as against N27.4 billion and N512.1 billion from N510.1 billion respectively within the period under review.

The net loans portfolio reduced significantly by 31 per cent to N198.6 billion as at June 2023 from N289.4 billion as at December 2022. The Bank’s NPL Ratio remained moderate at below three per cent while liquidity ratio stood strong at over 45 per cent.

However, the bank’s profit for the period was impacted by foreign exchange revaluation on the back of Nigeria’s recent FX liberalisation policy, resulting in the lender suffering a revaluation loss of N35 billion within the period.

Notwithstanding, the retail lender grew its FX trading income significantly by 17 per cent to N239.8 million from N204.4 million in the corresponding period of 2022, underscoring the Bank’s strategic focus on diversifying and growing its earnings portfolio.

Similarly, fees and income commission also witnessed a 10 per cent growth to N3.5 billion from N3.2 billion compared to the corresponding period of 2022, on the strength of the growing popularity of its digital banking platforms and customers’ acquisition in the retail space.

Speaking on the financial statements, the managing director/CEO of Unity Bank, Mrs. Tomi Somefun noted that the significant disruptions which characterised the operating environment has impacted the positions of the Bank to the extent that we have constraints in income generation on the back of revaluation of the bank’s net foreign liabilities occasioned by the Naira devaluation during the period.

Somefun stated that, “in the light of the prevailing FX revaluation in the financial system, what we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term.”

She further stated that “while we remain optimistic that the government’s policy initiatives will lead to cause correction in the market, the Bank has accelerated measures to ramp up asset creation and liability generation in the short and medium term.

“The bank is aggressively driving its retail growth in every segment of the market, expanding strategic partnerships; and growing commercial banking business to develop new and sustainable income lines for the Bank as well as pay sufficient attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and product marketing to enhance value creation in the market.”