Unity Bank Grows Profit by 21% in Q1 2023
…Records N57billion Gross Earnings in 2022fy
Unity Bank Plc has from its released unaudited financials for Q1, 2023, Unity Bank Plc has posted a 21 percent Profit After Tax (PAT) of N1.04billion.
In the corresponding period of 2022, Unity Bank recorded a PAT of N869.2million
In addition, the bank’s gross earnings also grew in Q1, 2023 by 17 percent to N15.9billion compared to N13.6billion in the corresponding period of 2022.
From the bank’s audited financials, Unity Bank Plc posted a Profit Before Tax of N1.1billion for the financial year that ended Dec 2022.
The bank also grew its gross earnings by 13.1 percent to N57billion from N50.2billion in the corresponding period of 2021.
According to Unity Bank’s audited full-year financial statement submitted to the Nigeria Exchange Group Limited, the bank recorded growth in key performance indicators like interest income, loans and advances to customers, customer deposits, and profits.
A major highlight of the financial year is the growth in total comprehensive income, which rose by 262.1 percent to N1.2billion from N744million in the corresponding period of 2021.
As a result, its Profit Before Tax (PBT) grew by N1.1billion, while Profit After Tax stood at N941.4million.
In the 2022 financial year, Unity Bank’s loan expanded by 7.5 percent to N289.4billion from N269.3billion. Consequently, the interest and similar income witnessed significant growth also rising by 7.5 percent to close at N48.9billion compared to N43.2billion in the corresponding period of 2021.
Similarly, income from fees and commissions recorded significant growth, rising by 25.7 percent to N7.68billion from N6.1billion within the period under review.
Deposits from customers saw marginal growth, increasing by 1.6 percent to N327.4billion from N322.2billion in the corresponding period of 2021.
The bank was able to achieve this by pushing “for deeper penetration of its retail footprint with the rollout of products targeting different segments of the market”.
Commenting on the financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun noted that the Bank’s focus on building back momentum continues to reflect in the key performance indicators despite economic headwinds and volatilities that characterized the operating environment in the 2022 financial year.
“There are highs and lows as we look at the gross earnings, with 13.7 percent growth, increase in liquid assets by 7.5 percent and deposits recording moderate growth of 1.6 percent, while maintaining steady growth in profitability”, she stated.
“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business”, she further stated.
She reassured shareholders that “going into the new financial year, the bank will remain laser-focused on our strategic choices and key growth drivers to push all the indices and elevate growth to double-digit territory”.
She added that “the performance posted for Q1’23 in terms of the PBT, gross earnings, and other key indicators are strong reinforcement of adequate measures being adopted and a testament of our resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the course of the financial year”.
Mrs. Somefun further stated that “since late 2022, Unity Bank Plc has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding.
“As part of our transformation journey, we will double down on these investments in the coming months in order to achieve our aspirations of (1) significantly reducing customer pain points and simplifying customer experience; (2) increasing the rate of customer acquisition; (3) expanding the frontiers of partnerships; and (4) ultimately developing new and sustainable income lines for the bank.”
According to her, “the bank will further give attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and brand visibility as it expands the range of products and services to meet the evolving needs of its esteemed customers”.
Analysts are of the view that the growing retail footprint driving the repositioning strategy of Unity Bank aligns with the market expectations, which is also reflected in the increasing uptake of the bank’s offering.