Connect with us

E-Financial

Unity Bank Repositions to Grow Profits

Published

on

Kindly share this post

Unity Bank Plc said it is now positioned to increase lending activities and grow profitability.

Its audited result and accounts for financial year ended December 31, 2019, of the lender showed despite the low yield environment during the period, it was able to improve on its total operating income and reduced operating expenses to boost profitability.

After 2017 balance sheet clean up, the bank reported improved balance sheet growth with increases in lending to customers and improved deposits.

Ebenezer Kolawole, Executive Director, Finance & Operations at Unity Bank, at a virtual media briefing recently expressed that the significant increase in total assets in the last three years is great achievement for the management and staff of the bank.

According to him, “The growth of about 40 per cent in total asset is a great achievement and we also need to look at the bank’s assets base in the last three years.

“In 2017, we closed with total assets of N134 billion. In 2018, it grew to N210 billion and in 2019, we reported N293 billion total assets.”

For the first time in the past five years, the bank declared gross earnings of N44.59 billion and N293 billion total assets, thereby consolidating on the gains on the reforms instituted by the Bank to grow a healthy balance sheet for the past two years. The bank has improved on its lending to the real sector with over N100 billion granted as loans and advances to customers in 2019. The solid financial performance for the period ended December 31, 2019, affirms Unity Bank as one of the leading banks in terms of resilience and a transformed bank amid a challenging business environment in Nigeria.

The 2019 results revealed a number of positive performances as the management continued to reposition its stands on value creation for shareholders and improved on lending to the real sector to support the federal government’s drive to revive the nation’s economy.

Reduction in OPEX, Increase in Total Operating Income Drive Profits Unity Bank for the period under review reported 28.7 per cent increase in gross earnings to N44.59 billion in 2019 from N34.65 billion reported in 2018.

The bank interest income also increased by 21.8 per cent to N35.95 billion in 2019 from N29.5 billion in 2018, over increasing interest generated from loans and advances to customers that moved from N17.64 billion in 2018 to N21.89 billion reported in 2019.

Also. interest generated from placement from other banks moved from N361 million in 2018 to N632 million reported in 2019. More so, interest expense grew by 25 per cent to N19.45 billion in 2019 from N15.5 billion reported in 2018, even as attributed higher bank charges closed 2019 at N10.12billion in 2019 as against N7.7 billion reported in 2018.

Continuing the trend during the year, Net interest Income was stronger in 2019, gaining 18.1 per cent to N16.49 billion in 2019 from N13.97 billion in 2018. In terms of fees generated from banking operations, the lender reported N4.98 billion net fee and commission income in 2019 from N2.3 billion reported in 2018, an increase of 11.3 per cent.

The Bank improved on its Electronic transactions amid gaining more customers and rolling out more ATMs and POS at strategic locations across the country.

Kolawole explained that “in agriculture, we have over 1.5 million farmers in our primary production that banked with us and the number continued to grow as we speak.”

For the year under review, Unity Bank reported a 31.5 per cent increase in total operating income to N25.13 billion in 2019 from N19.11 billion reported in 2018. On the cost side, total Operating Expenses (Opex) dropped by 5.5 per cent to N19.6 billion, as against N20.7 billion in 2018, which is below average inflation rate within the period, a reflection of cost-efficiency gains.

The Bank had embarked on several cost minimization initiatives that have continued to yield positive results as personal expenses dropped to N9.43 billion in 2019 from N9.98 billion reported in 2018 while other operating expenses moved to N8.37 billion in 2019 from N9.35 billion in 2018.

Kolawole speaking on cost said, “We have tried to reduce our cost because that is within our control. We have tried to make sure we do not have any waste at all. We make sure where our money is going to, money is coming back to the bank.

“This has contributed to improved cost to income ratio of Unity bank and it has helped us showcase our impressive 2019 financial year performance.”

Notwithstanding the challenging business environment in Nigeria, the Bank’s Profit Before Tax was impressive at N3.64 billion, compared to a loss of N7.55 billion reported in the 2018 financial year. Furthermore, the Profit After Tax closed positive in 2019, reporting N3.38 billion in 2019 compared to a loss of N7.7 billion reported in 2018.


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

Published

on

Kindly share this post

“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


Kindly share this post
Continue Reading

E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

Published

on

Kindly share this post

Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


Kindly share this post
Continue Reading

Trending