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Unity Bank records 92% rise in profit

By on July 5, 2014

Unity Bank Plc has released its unaudited results for the six-month period ended June 30, 2014, showing appreciation in its income and profit.

The results, which were posted on the Nigerian Stock Exchange’s website on Thursday, showed that the bank grew its profit before tax by 81.35 per cent to N7.898bn in the review period; up from N4.355bn in the same period of 2013.

The bank’s profit after tax rose by 92 per cent to N7.108bn from N3.702bn in the corresponding period of last year, while its gross income stood at N30.851bn, indicating a rise of 2.24 per cent on the N30.175bn it posted for the six-month period ended June 30, 2013.

Unity Bank also grew its earnings per share by 74.6 per cent from N10.59 to N18.49 in the review period, with its operating income rising by 11.18 per cent to N22.286bn from N20.045bn.

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.

At the completion of its 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.

It said 15 per cent or N2.927bn of the proceeds of the private placement would be used for branch development and renovation, which would span 48 months. Another 15 per cent would be used for information technology upgrade, while 10 per cent would go to products and channel upgrade.

The bank had declared a 26 per cent rise in profit before tax in the first quarter of 2014. It also recorded a reduction in total operating expenses by 8.5 per cent due to what it said was better cost management.

 

 

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