Unity Bank Plans to Raise Fresh Capital

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Tomi Somefun

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THE Unity Bank Plc is planning to raise additional capital to support its growth initiative, provide efficient banking services and increase lending to the real sector. According to the bank, the fresh capital will also enhance its pursuit of planned growth trajectory especially in agriculture financing, SMEs, rural economy and overall financial inclusion schemes already outlined.

The Bank, which announced its audited financial result for the year ended December 31, 2015, recorded gross earnings of N78.8 billion and a Profit after Tax, PAT, of N4 6 billion. The bank attributed its performance to its repositioning strategy, in which, its assets were critically stressed-tested resulting in major impairment charges of N27 billion for 2015 as against N17 billion in 2014.

Commenting on the results, Tomi Somefun, managing director, Unity Bank Plc, said, “With the bank’s repositioning efforts and consistent focus to tap into the emerging opportunities in the enlarged economic space within Nigeria, Unity Bank is poised to deliver quality banking service to emerging sectors in retail/SME, commercial and the agricultural value chain.

“The Bank is building strong infrastructure for retail banking and attracting youths for its sustainable banking business by developing customer-centric products to meet the needs of its esteemed customers and build new clientele base. With the bank’s capital raising exercise, the year ahead is bright as the effects of the on-going transformation initiatives will surely consolidate Unity Bank as “a retail bank of choice”, culminating in superior financial performance and values to all stakeholders.”

According to her, the 2015 performance was achieved in spite of the challenging operating environment characterised by a continued lull in the economic activities in the country as well as major regulatory headwinds that impacted earnings during the year especially the Treasury Single Account. She said the vital part of the transformation in Unity Bank has seen the institution also roll out efficient cost containment initiatives and structural changes to drive value creation in all aspects of its operations.

“Higher returns are strongly anticipated as the bank remains consistent and delivers more innovative banking products and services to customers through its 240 branches spread across all six geo-political zones of Nigeria,” she said.

The bank relocated its head office to Lagos from Abuja in March 2016. According to the bank, the benefits of relocation are beginning to trickle in with enormous positive impacts felt by the business nationwide.

—  May 30, 2016 @ 01:00 GMT

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