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Unity Bank Aggressively Drives Retail Growth, Grows Earnings to N27.5bn

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Unity Bank UnityCares

By Aduragbemi Omiyale

Despite the harsh operating environment and the unexpected policies of the government that affected businesses in Nigeria, Unity Bank Plc showed resilience in the first six months of 2023.

In its half-year unaudited financial statements filed to the Nigerian Exchange (NGX) Limited over the weekend, the bank marginally improved its gross earnings by 0.37 per cent to N27.5 billion from N27.4 billion in the first half of last year.

It was observed that 10 per cent growth in the fees and income commission to N3.5 billion from N3.2 billion helped the lender jerk up its income in the period under consideration.

This was influenced by the growing popularity of the company’s digital banking platforms and customers’ acquisition in the retail space.

The result of this aggressive retail growth was manifested in a 2 per cent increase in customer deposits to N333.38 billion from N327.42 billion, as it offered well-diversified banking product suites that cater to different segments of the retail market.

Also, Unity Bank’s strategic focus on diversifying and growing its earnings portfolio led to a 17 per cent rise in foreign exchange (FX) income to N239.8 million from N204.4 million.

However, the forex revaluation due to the FX liberalization policy of the Central Bank of Nigeria (CBN) impact negatively on the bank’s profit.

“In the light of the prevailing FX revaluation in the financial system, what we have is a market-driven impact which is adjustable and envisaged from the positive economic outcomes of the government policies in the near term.

“Be that as it may, the negative shareholders’ fund has improved considerably through the injection of N135 billion, which moderated the negative shareholders’ fund from (-ve) N275 billion in December 2022 financial year-end to (-ve) N178 billion as at the end of June 2023, after absorbing the FX revaluation loss suffered in Q2/2023.

“We are, however, focused with clear-cut plans to close out on our recapitalization programme very soon to enable us to do business as expected in the fast-growing markets in Nigeria,” the Managing Director/CEO of Unity Bank, Mrs Tomi Somefun, said.

The bank chief said the company remains optimistic that the government’s policy initiatives will lead to correction in the market, as the bank has accelerated measures to ramp up asset creation and liability generation in the short and medium term.

According to her, the Bank is aggressively driving its retail growth in every segment of the market, expanding strategic partnerships, and growing commercial banking business to develop new and sustainable income lines for the bank as well as pay sufficient attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and product marketing to enhance value creation in the market.

A quick look at other highlights of the unaudited results showed that total assets rose on a year-to-date basis to N512.1 billion from N510.1 billion, the net loans portfolio reduced to N198.6 billion from N289.4 billion, the non-performing loan (NPL) ratio remained moderate at below 3 per cent, and the liquidity ratio stood strong at over 45 per cent.

From the analysis of the financial statements, experts opined that notwithstanding the market shocks currently being experienced, Unity Bank is still on course, given the resilience it has demonstrated over time.

Banking

GTCO Distributes 3,000 Gas Cylinders to Obafemi Owode Residents

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GTCO cooking gas cylinder

By Aduragbemi Omiyale

Over 3,000 residents of the Obafemi Owode Local Government Area of Ogun State have been given a unit each of a 3kg gas cylinder by Guaranty Trust Holding Company (GTCO) Plc under its Waste for Gas initiative launched recently.

The cooking tool was distributed mostly to women in the community after conducting thorough assessments by visiting beneficiaries’ homes to ensure that the support reached those who genuinely needed it.

The financial institution said the items would provide access to gas-powered cooking solutions and simplify daily routines by freeing up time for other productive activities that support financial stability.

It expressed optimism that the cooking gas cylinder will make a meaningful impact in the community and enhance the quality of life for households.

“The Waste for Gas initiative is about making life easier for families, giving them more time to focus on important activities such as education, work, or personal development.

“Beyond this, our goal is to continuously develop sustainable initiatives that empower individuals, strengthen communities, and contribute to socioeconomic growth,” the chief executive of GTCO, Mr Segun Agbaje said.

Also, the Chief Communication Officer of GTCO, Ms Oyinade Adegite, said, “We visited various households across the local government and were surprised to find that some residents had already gone borrowing from money lenders just to afford gas cylinders, while some others were considering doing the same.”

She urged beneficiaries to use the cylinders for their intended purpose and not resell them, adding that GTCO would return for the second phase of the program. The bank’s decision to expand the initiative would depend on how well the items are utilized.

Expressing gratitude for the initiative, Obafemi Owode Local Government Chairman, Mr Ogunsola Adesina, stated that the intervention would significantly improve the standard of living in the area.

He also appealed to GTCO to establish a branch within the community to alleviate the banking challenges residents currently face.

In his remarks, the Olu of Owode-Egba, Mr Kolawole Aremu Sowemimo, advised beneficiaries not to sell the gas cookers and assured them that discussions were underway to establish discounted gas refill stations within the community.

Additionally, the Iyaloja General, Mrs Ganiyat Oyelakin, cautioned beneficiaries to use the gas cookers safely to prevent accidents. Residents were also educated on the proper handling and maintenance of their gas cylinders.

One of the beneficiaries, Mrs Risikat Ayoka, thanked GTCO for the initiative, saying, “We are excited. This gesture will make us stop using firewood for cooking.”

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Banking

Union Bank, ICAN Explore Potential Areas of Collaboration

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ICAN Union Bank

By Aduragbemi Omiyale

The managements of Union Bank of Nigeria and the Institute of Chartered Accountants of Nigeria (ICAN) are looking at ways to join forces for growth.

Recently, the executives of ICAN were at the head office of the financial institution tucked in the iconic Stallion Plaza in Lagos.

This visit underscores ICAN and Union Bank’s mutual commitment to advancing the accounting profession and contributing to the overall growth of Nigeria’s financial sector.

The president of ICAN, Mr Davidson C.S Alaribe, appreciated the warm reception and highlighted the importance of such engagements in promoting professional excellence and ethical standards within the accounting and finance sectors.

In his remarks, the Chief Financial Officer of Union Bank, Mr Oluwagbenga Adeoye, emphasised the bank’s commitment to supporting initiatives that enhance the professional development of accountants and ICAN members.

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Banking

Senate Accuses CBN of Stalling N30trn Ways and Means, ABP Investigations

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CBN IMTOs

By Adedapo Adesanya

The Senate Ad-hoc Committee on Ways and Means Advance has accused the Central Bank of Nigeria (CBN) of frustrating its investigation into the N30 trillion Ways and Means Advance and the Anchor Borrowers’ Programme (ABP) under former President Muhammadu Buhari’s administration.

The committee made the accusation after receiving an interim report from its consultants at a meeting where they expressed frustration over the central bank’s failure to provide crucial documents required for the probe.

The panel, which was inaugurated a year ago by Senate President, Mr Godswill Akpabio, stated that the delay has significantly stalled progress on the investigation.

The chairman of the committee, Mr Isah Jibrin, criticised the CBN for withholding vital information, despite multiple requests, revealing major infractions with the preliminary reports of the lender.

He dismissed speculations that the Senate had been compromised or gone to sleep, reaffirming its commitment to ensuring accountability and transparency in the management of public funds.

“The information we have here is not different from what we have heard all along. What we did was to hand over the documents to the consultants, and when the consultants made available to us this interim report, our intention was to hold onto the interim report on the final report,” he told reporters.

“But we’ve been compelled to make available this interim report to the general public so that they know that we let them know where the problem is, and the problem is that the Central Bank of Nigeria has denied us consistently the documents that we need to complete this assignment. That is the truth.

“It was at the CBN sometimes, I met Bala the deputy governor. And they promised, but nothing came out of it. The Clerk has been there several times. Nothing has come out of it.

“The consultants themselves even took it upon themselves to go with CBN directly, because we introduced them to CBN and nothing has come out of it.”

The committee issued a strong warning to the CBN representatives, emphasizing the need for full disclosure of how the funds were utilized to address Nigeria’s economic challenges.

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