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Unity Bank records 897% jump in profit

By on October 7, 2014

Unity Bank Plc’s profit before tax soared by 897.3 per cent to N12.018bn in the nine months ended September 30, 2014 – from N1.205bn in the same period of 2013, the bank’s unaudited results has shown.

The results for the nine months to September 30, which was filed with the Nigerian Stock Exchange, showed that the bank grew it’s profit after tax by 859 per cent year-on-year to N11.057bn from N1.153bn, while its basic earnings per share appreciated by 553.6 per cent from N4.40 to 28.76.

Unity Bank’s gross income at N48.141bn for the nine months to September 30, 2014 was six per cent higher than the N45.395bn it posted in the corresponding period of last year.

Its total operating income rose by 22.8 per cent from the N28.541bn it announced for the first nine months of 2013 to N35.065bn in the review period, while the net operating profit increased by 17.4 per cent to N32.884bn.

The results showed that Unity Bank grew it’s total assets by 1.03 per cent to N407.793bn in the period under review from N407.629bn as of December 31, 2013.

It also showed that the bank reduced it’s total liabilities by by 6.7 per cent year-on-year. The total liabilities dropped from N375.416bn to N350.389bn.

Unity Bank had also reported growth in both its PBT and PAT for the six-month period ended June 30, 2014. In the first half of the year, its PBT was up by 81.35 per cent, PAT advanced by 92 per cent, its earnings per share rose by 74.6 per cent, while gross income rose by 2.2 per cent.

The bank had said in May that it had concluded plans to raise N39.224bn via rights issue and private placement in a bid to revamp its operations, a move that was endorsed by the bank’s shareholders at an Extraordinary General Meeting in December 2013.

At the completion board meeting, which was held in Lagos, the Chairman, Unity Bank, Alhaji Lamis Dikko, had said the bank planned to use the funds to expand and strengthen its operations for sustained growth and profitability.

The Managing Director and Chief Executive Officer of the bank, Mr. Henry Semenitari, had assured the shareholders that the funds would be judiciously used to achieve set goals, stressing that the exercise would help revamp the bank.

He said, “The funds to be raised will be judiciously utilised to improve our processes, procedure and people. The bank’s Q1 report is already indicative of the improvements and is just an indication of the positive turn of results.”

According to the bank, the offer proceeds will be used for branch development, information technology upgrade, products and channel upgrade, human resource development, corporate communications and enhancement of its working capital.

 

[Punch]