Unity Bank Grows Profit by 23% in First Half

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Nigeria’s retail lender, Unity Bank Plc has posted gross earnings of N27.6 billion for its 2022 half-year results, representing a growth of 17% year-on-year with noticeable improvements across key performance indicators. In its unaudited half-year financials submitted to the Nigeria Exchange Group Limited, the local lender again made significant improvements across key performance indicators.

According to the management, Unity Bank grew profit before tax by 23% which rose to N1.8 billion from N1.5 billion in the corresponding period of 2021. Meanwhile, the bank’s profit after tax for the period also increased by 23% to close at N1.6 billion from N1.382 billion in the first half of 2021.

The key highlights of the results showed growth in interest and similar income, which rose 18% to N23.938 billion from N20.273 billion in the corresponding period of 2021. This indicates sustained growth in the loan book and improved earnings from the lender’s robust digital channels, arising from sustained investment in its digital payment infrastructure.

Similarly, the lender posted sustained asset growth as total assets moved up by 7% to N574.3 billion from N538.9 billion in 2021. Unity bank saw a 12% growth in deposits, rising to N359.5 billion from N322.3 billion in December 2021.

The bank said this is a clear indication of the positive trend of lender’s innovative retail products targeting several segments of the market as well as enhanced customer acquisition strategies for emerging products rolled out to the market during the period under review.

In the same vain, the lender recorded an increase on its loan books to N303.632 billion from N269.270 billion in 2021, representing a 13% growth. Commenting on the financial statements, the Managing Director\CEO of Unity Bank Plc, Mrs Tomi Somefun welcomed the H1’22 results. She noted that while the key performance indicators continue on an upward trajectory.

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Somefun said pretax profit jumped 23%, total assets grew by 7% and gross earnings jumped 17%.

“The outlook for our financial position has now moderated significantly looking at other fees and income lines which performance was hitherto characterised by volatilities in the operating environment”, Unity Bank chief said.

“As the Bank aims to further grow all indices to double-digit regions in the coming years, one reassuring take from the financial position lies in the market confidence, as well as steadily growing retail and SME franchise arising from the development of products that resonate with different markets segments, which will enable the Bank to continue to operate and successfully navigate the tough operating environment, amid rising economic headwinds,” Mrs Somefun stated.

The Unity Bank boss also stated that having invested massively in technology to drive a major revamp in our digital Banking products and channels including the Unifi Mobile App, our USSD, *7799#, internet banking, etc., the major focus is to drive increased optimisation which will enable the Bank to provide electronic convenience in the way we support our teaming customers and market segments and more often change the way they transact business.

Analysts believe that the strengthening key performance indicators showed that the market sentiments are responding positively to the strategies of the lender’s management to accelerate the growth momentum designed for the Bank. 

Culled from dmarketforces.com

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