Unity Bank Achieves Impressive Growth with N57 Billion Gross Earnings in 2022 Fiscal Year

 

.....Records 21% Increase In Q1/2023

Unity Bank Plc, a retail lender in Nigeria, has announced its full-year financial results for the period ending December 2022. 

The bank reported a Profit Before Tax of N1.1 billion, marking a significant increase in comparison to the previous year while its gross earnings rose by 13.1% to N57 billion, reflecting a positive growth trend.

The bank's audited full-year financial statement, submitted to the Nigeria Exchange Group Limited, revealed growth in various key performance indicators. 

This growth was evident in areas such as interest income, loans and advances to customers, customer deposits, and overall profits.

One notable highlight of the financial year was the significant growth in total comprehensive income, which soared by 262.1% to N1.2 billion compared to the corresponding period in 2021. The bank also experienced a positive growth in Profit Before Tax, with an increase of N1.1 billion, while Profit After Tax stood at N941.4 million.

During the review period, the bank's loan book expanded by 7.5% to N289.4 billion, resulting in a corresponding increase in interest and similar income to N48.9 billion, a growth of 7.5% compared to the previous year's figure of N43.2 billion. Also, income from fees and commissions witnessed a significant surge, rising by 25.7% to N7.68 billion within the same period.

Furthermore, customer deposits saw a marginal increase of 1.6% to N327.4 billion, as the bank focused on expanding its retail presence and launching products targeting different market segments.

In the first quarter of 2023, the bank sustained its improved performance, with a 21% growth in Profit After Tax, reaching N1.04 billion. Gross earnings for the quarter also rose by 17% to N15.9 billion compared to the corresponding period in 2022.

The Managing Director/CEO of Unity Bank Plc, Tomi Somefun commented on the financial statements, highlighting the bank's ability to maintain positive performance despite the challenging economic conditions and market volatilities in the 2022 financial year. The bank remains committed to building momentum and achieving further growth.

“There are highs and lows as we look at the gross earnings, with 13.7% growth, increase in liquid assets by 7.5% and deposits recording moderate growth of 1.6%, while maintaining steady growth in profitability”, she stated.  

“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business”, she further stated. 

She assures us that as we enter the new financial year, the Bank will maintain a strong focus on our strategic decisions and key drivers of growth in order to drive all indicators and achieve double-digit growth.

"The performance posted for Q1'23 in terms of the PBT, gross earnings, and other key indicators are strong reinforcement of adequate measures being adopted and a testament of our resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the course of the financial year", Mrs. Somefun stated.   

She further said: “Since late 2022, the Bank has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding. As part of our transformation journey, we will double down on these investments in the coming months in order to achieve our aspirations of (1) significantly reducing customer pain points and simplifying customer experience; (2) increasing the rate of customer acquisition; (3) expanding the frontiers of partnerships; and (4) ultimately developing new and sustainable income lines for the Bank.”

As per her statement, the Bank plans to prioritize fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and brand visibility while expanding its range of products and services to cater to the changing needs of its valued customers.

Industry analysts believe that the Bank's repositioning strategy, driven by its expanding retail footprint, is in line with market expectations. This is evident from the growing popularity of the Bank's offerings among customers.