Emily Brown
Tue, Sep 12, 2023 8:15 PM

Unity Bank Plc Focused on Recapitalisation and Asset Creation, says Official

BusinessEarn Max 30 Coins💰 Get coins immediately after reading this article

Unity Bank Plc Focused on Recapitalisation and Asset Creation, says Official
Unity Bank Plc, a retail lender in Nigeria, is determined to prioritize recapitalization and asset creation in response to the prevailing foreign exchange revaluation in the financial system. The bank's Managing Director, Tomi Somefun, acknowledged the disruptions and impact on the bank's financial positions due to the depreciation of the Naira currency. However, she expressed optimism about the positive economic outcomes of government policies in the near future. Unity Bank Plc aims to bolster its asset creation, liability generation, and business growth while focusing on process automation, cost efficiency, and value chain relationships.

Unity Bank Plc, a prominent retail lender in Nigeria, has reaffirmed its commitment to focus on recapitalisation and asset creation amidst the prevailing challenges in the financial system. The Managing Director and Chief Executive Officer of Unity Bank, Tomi Somefun, highlighted the significant disruptions that have affected the bank's positions, acknowledging the impact of the Naira devaluation on the revaluation of the bank's net foreign liabilities.

Somefun emphasized that the negative shareholders' fund has shown considerable improvement through a substantial injection of N135 billion. This injection moderated the negative shareholders' fund from (-ve) N275 billion at the end of the 2022 financial year to (-ve) N178 billion as of June 2023. Unity Bank Plc is determined to conclude its recapitalisation programme promptly, enabling the bank to operate as expected in Nigeria's fast-growing markets.

Despite the challenges faced by the bank, Somefun expressed optimism that the government's policy initiatives will lead to corrections in the market. Unity Bank Plc has also intensified measures to enhance asset creation, liability generation, and business growth in both the short and medium terms.

The bank is actively driving retail growth across all market segments, expanding strategic partnerships and commercial banking activities to develop new and sustainable income streams. Unity Bank Plc aims to leverage fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and enhanced product marketing to create value in the market.

While Unity Bank Plc reported a net loss of N38.9 billion for the first half of 2023, it witnessed a marginal increase of 2% in deposits, reaching N333.38 billion. This growth in deposits showcases the bank's commitment to deepening its retail footprint by offering a diversified banking product suite catering to different retail market segments.

The report also highlights gross income and total assets of N27.5 billion and N512.1 billion, respectively, in the first half of the year. Notably, the net loans portfolio reduced significantly by 31% to N198.6 billion, and the NPL (Non-Performing Loan) Ratio remained moderate at below 3%. The bank maintained a strong liquidity ratio of over 45%.

Furthermore, Unity Bank Plc witnessed a 10% growth in fees and income commission, which reached N3.5 billion. This growth can be attributed to the bank's effective digital banking platforms and successful customer acquisition in the retail space.

Unity Bank Plc is resolute in its commitment to overcome prevailing challenges, achieve recapitalisation targets, and foster sustainable asset creation while prioritizing customer satisfaction and value creation.

Source of content: OOO News 2023-09-12 News

More detailed, more comprehensive, fresher news, please visit OOO NEWS.

Share content to earn coins