Unity Bank Plc has demonstrated robust financial performance in the first half of 2023, with gross earnings reaching an impressive N333.38 billion.
This marks a noteworthy two percent increase from the N327.42 billion recorded in H1’2022, as disclosed in the bank’s half-year unaudited financial statement submitted to the Nigeria Exchange Group Limited.
During the same period, Unity Bank’s gross income climbed to N27.5 billion, compared to N27.4 billion, while its total assets increased to N512.1 billion from N510.1 billion, showcasing the bank’s steady growth.
One notable aspect of the report is the significant 31 percent reduction in the net loans portfolio, which stood at N198.6 billion as of June 30, 2023, down from N289.4 billion at the end of December 2022.
Despite this, the bank maintained a moderate NPL ratio of below three percent and a robust liquidity ratio of over 45 percent.
However, Unity Bank acknowledged that its profit for the period was affected by foreign exchange revaluation due to Nigeria’s recent FX liberalization policy.
This led to a decline in the bank’s position but also resulted in a 17 percent increase in FX trading income, reaching N239.8 million, reinforcing the bank’s commitment to diversifying and expanding its earnings portfolio.
Additionally, fees and income commission experienced a notable 10 percent growth, totaling N3.5 billion, driven by the popularity of Unity Bank’s digital banking platforms and increased customer acquisition in the retail segment.
Commenting on the financial results, Tomi Somefun, the Managing Director/CEO of Unity Bank Plc, acknowledged the challenges posed by the operating environment.
She explained, “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.”
She expressed optimism about the positive economic outcomes of government policies in the near term.
Somefun also highlighted the bank’s commitment to strengthening its financial position, stating, “We are, however, focused with clear-cut plans to close out on our recapitalization program very soon to enable us to do business as expected in the fast-growing markets in Nigeria.”
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