Community oriented commercial institution, Unity Bank Plc, has recorded a Progressive report of Growth in Deposit in the first half of 2023.
According to Nigeria Exchange Group NGX, Limited, Unity Bank grew its deposits to N333.38 billion in H1’23, a 2% addition to the previous N327.42 billion recorded in H1’22.
In the unaudited financial record, NGX reports that Unity Bank’s gross income recorded at N27.5 billion as against N27.4 billion and total assets at N512.1 billion from N510.1 billion within the period under review.
Also, the net loans portfolio reduced significantly by 31% to N198.6Billion as at 30 June 2023 from N289.4Billion as at 31st December 2022. The Bank’s NPL Ratio remained moderate at below 3% while liquidity ratio stood strong at over 45%.
NB: Growth in Deposits demonstrates incremental gains by the lender bank from its commitment to deepening its retail footprint through a well-diversified banking product suites that caters to different segments of the retail market.
This growth record is amidst the lender bank’s revaluation loss of N35 billion within same period under review. The profit was impacted by foreign exchange revaluation on the back of Nigeria’s recent FX liberalization policy. Notwithstanding, the bank grew its FX trading income significantly by 17% 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.
The unaudited review also states that the bank’s income commission records a 10% 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.
Don’t miss out on: Juliet Ehimuna Joins Zenith Bank Leadership Team as Non Executive Director
Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun commented on the significant growth, attributing it to the operating environment of the bank.
Mrs. Tomi statement reads:
“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.
“Be that as it may, the negative shareholders’ fund has improved considerably through the injection of N135billion which moderated the negative shareholders’ fund from (-ve) N275Billion in December 2022 financial year-end to (-ve) N178Billion as at the end of June 2023, after absorbing the FX revaluation loss suffered in Q2/2023.
“We are however, focused with clear-cut plans to close out on our recapitalization programme very soon to enable us do business as expected in the fast-growing markets in Nigeria.”
Financial analysts believe that regardless of the market shocks currently being experienced, the Bank is still on course given the resilience it has demonstrated over time.
Don’t miss out on: NGX: GT Bank Records High Profit, Gives Credit to New Business Structure
Unity Bank Plc, 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.