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Unity Bank grows earnings to N57bn in 2022, up 17% in Q1 2023



Five Nigerian banks ignored by foreign investors in 2020

Unity Bank’s gross earnings closed 2022 with N57 billion, against the N50.2 billion reported in 2021, indicating 13.1% year-on-year growth.

This was disclosed in a statement released by the bank on Saturday, which revealed that the firm’s deposits from customers inched higher by 1.6% from N322.2 billion at the end of 2021 to N327.4 billion last year.

“A major highlight of the financial year is the growth in total comprehensive income, which rose by 262.1% to N1.2 billion from N744 million in the corresponding period of 2021. The Bank grew Profit Before Tax (PBT) by N1.1 billion, while Profit After Tax stood at N941.4 million.

“With the loan book sustaining an expansion by 7.5% to N289.4 billion from N269.3 billion within the period under review, the interest and similar income consequently witnessed significant growth rising 7.5% to close at N48.9 billion compared to N43.2 billion in the corresponding period of 2021.

“Similarly, income from fees and commissions recorded significant growth, rising by 25.7% to N7.68 billion from N6.1 billion within the period under review,” the financial report reads.

Similarly, in the first quarter (Q1) 2023, Unity Bank saw growth in its Profit After Tax, which rose by 21% from N869.2 million posted in the same quarter last year to N1.04 billion.

READ ALSO:Unity Bank declares N2.2bn profit in Q3/2022, grows gross earnings by 17%

The company’s gross earnings for the quarter followed the same path, as Unity Bank recorded N15.9 billion between January to March this year, in contrast with the N13.6 billion generated in Q1 2022.

Meanwhile, commenting on the financial statements, the Managing Director and Chief Executive Officer of Unity Bank, Tomi Somefun, said despite economic headwinds and volatilities that characterized the operating environment last year, the lender intends to improve on the growth in the key performance indicators.

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

Somefun noted that the bank has increased its investment in technology to make Unity Bank more competitive in the retail market.

“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,” she stated.

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