Unity
Bank Plc has declared gross earnings of N33.906 billion for the nine months
period ended September 30, 2020 and also recorded a 44% asset growth during the
period.
A review of the unaudited Q3/2020 results released to The Nigerian Stock Exchange showed that the gross earnings of N33.906billion represent an 8 per cent growth from N31.256 billion recorded in the same period in 2019.
The
lender’s total assets rose significantly to N420.870 billion in the 9-month
period ended September 30, 2020, from N293.052 billion in the corresponding
period of 2019, representing a whooping growth of 44%
This
is even as the Bank grew its bottom-line by 6% as Profit Before Tax, PBT moved
up to close at N1.710 billion from N1.611 billion in 2019. Profit After Tax,
PAT equally grew by 6% to N1.573 billion compared to the N1.482 billion
recorded in the same period in 2019.
This
performance comes on the heels of the unmitigated impact of the global pandemic
on the economy, which lingered throughout the quarter with its attendant headwinds
that slowed down economic activities.
The
lender also substantially grew its customers’ deposit portfolio to N332.362
billion from N257.691 billion for the same period in 2019, creating a 29 per
cent increase affirming the confidence reposed by its wide spectrum of the
banking public. The lender, it was gathered, rolled out massive
customer-centric products to the public especially in the retail space which
accelerated the banking patronage during the period.
Commenting
on the result, Unity Bank’s Managing Director/Chief Executive Officer, Mrs.
Tomi Somefun welcomed the steady growth of the balance sheet especially from
both assets and liability side of the business and across key performance
indices. She said that this has had a sustained impact on the bottom-line, even
as the Bank continues to innovate in its e-business product bouquet to target
and support value chain business with robust technology and thus diversify its
earnings base’’.
Looking
ahead, Mrs. Somefun stated that “One of the areas that will define our
strategic direction going forward is an investment in alternative channels
leveraging further deployment of resources in technology.
COVID-19
gave us a chance to test the integrity and scalability of our technology, the
IT infrastructure, and the electronic banking channels, and provided us an
opportunity to see where we needed to improve and strengthen, knowing that the
future of sustainable banking business is in alternative channels”.
The
results can also be attributable to the Bank’s growing brand profile and
leadership in agribusiness, especially having provided loans and financing to
over one million smallholder farmers especially those in primary production and
other value chain businesses in the agricultural sector.
During
the period under review, the Bank enhanced and deepened its collaboration and
partnership with major commodity associations including the Rice Farmers
Association of Nigeria (RIFAN), Maize Farmers.
Association
of Nigeria and the National Cotton Association of Nigeria (NACOTAN) to finance
over 400 smallholder farmers’ crop production with its overall strategic intent
of fostering food security, employment generation and aggregate economic
welfare of citizens across the value chains.
The
Bank also worked with processors and members of Millers’ Association of Nigeria
to provide working capital through the CBN’s various intervention funds, while
providing credit facilities to large number of input suppliers and vendors
through the Anchor Borrower’s Programme.
In
recognition of the above, Mrs Somefun added that the Bank will continue to
focus on agriculture, while deepening business in various new markets that have
been developed alongside to pull more resources and enhance multiple streams of
income.
In
the view of analysts, the consistent upward trajectory in the performance of
the Bank as shown in Q1, H1 and Q3, 2020 results continue to reinforce growing
market confidence as well as demonstrates the commitment and drive of the
management to enhance shareholder’s value.
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