Unity Bank Reports N59.3 Billion Gross Earnings
By Patience Ikpeme
Unity Bank Plc has announced its financial results for the full year ended December 31, 2023, revealing gross earnings of N59.3 billion, representing a 3.84% year-on-year growth.
The bank’s audited financial statement, submitted to the NGX Group Limited, also highlighted significant improvements across key performance indicators, showcasing the bank’s resilience in a challenging economic environment.
A notable highlight of the report is the substantial 23% increase in customer deposits, which rose to N402.9 billion from N327.4 billion in the previous year. This surge underscores sustained retail growth and reinforces customer confidence in the bank.
Additionally, Unity Bank’s total assets reached N472.5 billion, while net fee and commission income stood at N5.2 billion. The bank also reported a 9.6% increase in interest income, rising to N53.7 billion from N48.8 billion.
Addressing the bank’s performance, Mrs. Oluwatomi Somefun, Managing Director/Chief Executive Officer of Unity Bank Plc, acknowledged the challenges posed by the acute shortage of foreign exchange and the subsequent Naira devaluation. She noted that these factors led to a revaluation loss, which was reflected in a profit alert issued by the bank. However, she emphasized that the full-year results indicate a rebound from the low growth and negative trends experienced during the year.
“As we begin to see the margins being closed, it is an indication that the measures being taken to revamp all aspects of the business is being well received by the market: be it workable recapitalization plan, aggressive drive for asset creation, product innovation, or digital banking,” Mrs. Somefun stated. She further highlighted the bank’s commitment to building on these improvements, citing positive market sentiments, a growing business franchise, and steady growth in various retail market segments across Nigeria.
Mrs. Somefun outlined the bank’s strategic initiatives to reclaim lost ground, including the development and upcoming launch of an omnichannel digital app designed to enhance reliability, customer experience, and support diverse product functionalities. This digital transformation is expected to positively impact earnings, income, and profitability.
A significant development in Unity Bank’s growth strategy is the Central Bank of Nigeria’s (CBN) recent approval of a business combination with another innovative bank. This partnership, which aligns with the bank’s recapitalization plans, is built on a shared vision to redefine the banking experience for customers. By leveraging Unity Bank’s extensive branch network and strong customer relationships, coupled with the partner bank’s digital expertise and commitment to innovation, the consolidated entity aims to seamlessly integrate traditional and modern banking services.
“We have the right indicators to reclaim lost grounds – innovating with the development and soon to be launched an omnichannel digital app to improve reliability, customer experience, support diverse products functionality which will impact earnings, income and profitability,” Mrs. Somefun reiterated.
Analysts reviewing the bank’s performance have noted the steady growth of its retail business and the positive market perception and confidence in the bank. These factors contribute to the bank’s remarkable resilience, while investor sentiments remain positive. The bank’s strategic initiatives, including the approved business combination and digital transformation efforts, are expected to further strengthen its position in the Nigerian banking sector.
