Banking
FY 2018: Unity Bank Returns to Profitability, Nets N1.3bn Profit
By Modupe Gbadeyanka
After being underwater for a while, Unity Bank Plc has bounced back to profitability, its result for the 2018 financial year have revealed.
On Friday, the lender released its audited financial statements for the year ended December 31, 2018 and the balance sheet grew by 50.8 percent during the year.
The bank’s balance sheet size increased from N156.51 billion in 2017 to N235.98 billion, culminating in gross earnings of N37.33 billion for the year.
Similarly, in the period under review, the bank grew its bottom-line by 109.9 percent as Profit Before Tax (PBT) moved in a positive trajectory to close at N1.41 billion, with the bank recording a Profit After Tax (PAT) of N1.27 billion, shaking off the negative position it posted in 2017FY.
The year’s performance is supported by noticeable fundamentals derived from the bank’s corporate action to clean up its book by eliminating all the legacy non-performing loans (NPLs) which resulted in full de-risking of its balance sheet and creating a new lease of life for the Bank
A cursory review of the bank’s performance showed significant growth across key financial metrics, with Net Operating Income for the year ended December 31, 2018 growing by 112 percent to N21.63 billion from N10.22 billion in the corresponding period of 2017, Non-Interest Income also increased to N6.3 billion from N1.61 billion recorded in 2017 and earnings per share (EPS) for the year 2018 stood at N13.03k, up from negative of 127 kobo recorded in 2017 FY.
The bank’s improved performance was attributable to the reinvigorated business transformation initiatives implemented during the year, in addition to strategic corporate actions taken by the management of the bank to prioritize customer service, product delivery as well as optimize its operations for operational efficiency, thus setting a stage for its sustainable business growth model.
The bank’s strong performance feat was achieved through composite strategic focus involving the complete revamp of its service delivery channels, products revamp and profiling as well as building structured and secured operating environment to protect customers’ businesses.
In this regard, the bank, not only aggressively pushed out its USSD platform (the newly introduced customer-centric platform for easy banking), but also launched its youth-focused UniFi app – a robust omni-channel app that goes beyond banking services but also offers lifestyle services including gamification for increased customer satisfaction.
These, along with aggressive transaction push led to a 290 percent increase in non-interest income (income from transactions, cards, mobile, ATMs, commissions & fees, FX etc.).
Furthermore, the bank also optimized its operations and services through process simplification and automation while promoting cost efficiency across the entire value-chain.
The bank rolled out its Central Processing Centre (CPC) for standardized operations and operational risks mitigation thus improving service delivery to customers in the bank.
In effect, these and several modest initiatives led to the huge 17.3 percent reduction in total operating expenses and a major improvement in the efficiency ratios.
Unity Bank also leveraged on its core competence and strategic advantage in deepening its reach in Agribusiness and attendant value-chain, driving the over 360 percent growth in loan portfolio in this segment of the market.
A major feat achieved without material increase in loan quality – with NPL ratio closing the year at 0.69 percent (the best in the industry).
On cost optimization, Unity Bank’s focus yielded positive results as the lender brought down its total operating expenses by 17.3 percent from N24.46 billion in 2017 to N20.22 billion in 2018FY. This reduction is primarily as a result of the management drive to build strong processes in its operations by leveraging on key business alliances that attract better efficiency in resource allocation and growing scales in the network.
Commenting on the result, the MD/CEO, Mrs Tomi Somefun said: “The most gratifying aspect of our 2018 performance is that the bank has made a dramatic turnaround from losses in the previous year to a promising profit position in 2018FY.
“This was made possible by growth in the business throughputs and transaction-based banking with its attendant strong non-interest income.
“We equally recorded significant growth in our customer acquisition through enhanced customer-centric products that we rolled out during the year riding on our rebranded channels and platforms which were well accepted by the youth.
“We leveraged on our exceptional competencies in agribusiness and rural economy niche market which contributed to substantial growth in loans through on-lending schemes to farmers in the last quarter of 2018, all of which buoyed our performance for the year under review”.
“Also, the two-prong customer-centric banking approach being deployed to deliver quality banking services to emerging sectors in Retail/Small and Medium Enterprises and the Agricultural value chain are impacting positively on the bank’s bottom-line. In furtherance of our vision to be the Retail Bank of Choice, the bank revamped its digital strategy to provide convenient, simple and efficient platforms that are already attracting the next generation of Nigerians and expand the volume of loyal customers that have kept faith with us through the years. These are designed to guarantee double digits growth in both earnings and profits for the bank in the near future,” she stated.
The bank is aggressively and creatively pushing the frontiers of its business by creating robust platforms to support emerging digitalization of strategic businesses as well as corporate service units aimed at unlocking inherent potentials that will enable the bank effectively ride on economic headwinds and target opportunities in the markets.
Analysts are of the view that the full impact of the initiative on the account and shareholder’s value began to manifest at the fourth quarter of 2018 and early 2019, thereby gradually regaining investors’ confidence in the mid-tier lender after a period of uncertainty prevailed in the preceding year.
A statement from the bank further adds that the board of the bank expects that barring unforeseen circumstances, the trend of the results achieved in 2018 would be surpassed in 2019.
With the margins steadily looking up, the outlook for the future holds even brighter prospects for the bank even at this period that the bank closes its recapitalization programme and sets a new phase of its strategic pursuit.
The bank’s board further expects that barring unforeseen circumstances, the trend of the results achieved in 2018 would be surpassed in 2019.
By Aduragbemi Omiyale
An initiative aimed to challenge business leaders and innovators to transcend current horizons has been introduced by Stanbic IBTC Bank through a thematic campaign known as There is Possible, Then There is More.
The idea is to a mindset of amplified possibility, sustained growth, and transformative partnerships, with Stanbic IBTC Bank positioned as a pivotal enabler.
With this campaign, Stanbic IBTC Bank is positioning itself as a trusted ally for Nigerian CEOs who want to do more, become more, and achieve more.
The Executive Director for Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, said, “As a bank, our mission is to not only meet the financing needs of Nigerian CEOs, but to inspire them to reach for more.
“We understand the challenges they face and the aspirations they hold, and we are equipped to support their ambitions, and extend them even further thereby, helping them to achieve exponential growth.”
He emphasised that, “This campaign is evidence of our commitment to being more than just a bank; we want to be the partner that propels our customers beyond their goals.
“We empower our clients with the tools and resources necessary for success by fostering collaboration and mutual growth and this proactive approach underscores our commitment to supporting business leaders and inspiring them to dream bigger and achieve greater heights in their respective industries.”
Business Post reports that the campaign officially debuted with a striking teaser, with An Open Letter to All CEOs on key digital platforms, digital out-of-home screens, and social media feeds. For days, the public speculated. This week, the letter was finally revealed—and with it, a most human and resonant message.
The Open Letter to CEOs is more than just an advertising creative campaign; it is a genuine call to action.
In it, Stanbic IBTC Bank acknowledges the resilience and achievements of Nigerian business owners even in the face of adversity. But it also dares to ask: What more could be achieved with the right support, partnership, and financial foresight?
Overall, Stanbic IBTC Bank’s vision reflects a deep understanding of the crucial role that financial institutions play in the broader economic ecosystem—one where banks serve as catalysts for growth and achievement.
From trade financing to investment advice, capacity development to transactional banking, Stanbic IBTC Bank offers a suite of solutions designed specifically to meet the evolving needs of today’s CEOs — from start-ups and SMEs to established corporations and multinationals.
By Adedapo Adesanya
The acquisition of the National Bank of Kenya by Access Bank Plc may linger a bit because securing the approval of the Central Bank of Nigeria (CBN) may be a challenge despite its Kenyan counterpart giving its blessings to the transaction.
Recall that on Monday, the Central Bank of Kenya (CBK) and the National Treasury approved the deal which will see KCB sell 100 per cent of NBK at 1.25 its book value to the Nigerian lender which had both signed an agreement for the purchase in March 2024.
Though the CBK has given its approval, the CBN also needed to authorise the acquisition for it to be completed.
Reports suggest the deal appears to have halted as the Nigerian apex bank flagged it for regulatory breaches and failure to receive proper notice.
It also said there were missing disclosures and a non-compliant structure and has asked both parties to resubmit the deal.
This development put a snag in Access Bank’s second acquisition in Kenya for the Nigerian bank after it bought Transnational Bank Limited in 2019.
Access Bank has plans to double the share of assets outside its home market by 2027 and has seen deal build on the bank’s growing operations in the Democratic Republic of Congo and Rwanda.
However, one of these may not happen as the CBN reportedly wants Access Bank to exit the Democratic Republic of Congo and shut down its London office as part of broader efforts to streamline Nigerian banks’ foreign operations.
Access Bank has been on a Mergers and Acquisition (M&A) streak across the continent, acquiring Grobank in South Africa, BancABC in Botswana and Mozambique, Diamond Bank in Nigeria, and Finibanco Angola in line with the visions of its late founder, Mr Herbert Wigwe.
It also has plans to buy Standard Chartered subsidiaries in Cameroon, The Gambia, and Tanzania (it has already completed acquisitions in Angola and Sierra Leone) as well as an 80 per cent stake in Finance Trust Bank (FTB) of Uganda which was announced in January 2024 and has gotten partial approval from Uganda’s financial authorities but has pending approval from the CBN and Bank of Uganda.
At the time of this report, both the CBN and Access Bank could not be reached by Business Post for comments on this development.
By Dipo Olowookere
Additional shares of First HoldCo Plc worth about N149.6 billion have been listed on the Nigerian Exchange (NGX) Limited.
The fresh equities were introduced to the stock exchange on Monday, April 7, 2025, to increase the total issued and fully paid-up share of the financial services provider to 41,877,841,591 ordinary shares of 50 Kobo each.
Before now, First HoldCo had a total of 35,895,292,792 ordinary shares of 50 Kobo each but this increased with the addition of another 5,982,548,799 ordinary shares of 50 Kobo each.
The new equities were from the rights issue of the organisation, which saw shareholders getting one new stock for every existing six stocks held at the close of business on Friday, October 18, 2024.
The exercise, which was oversubscribed by 25.46 per cent, was part of the strategies to meet the new minimum capital requirement of the Central Bank of Nigeria (CBN) for its banking business, First Bank of Nigeria Limited.
The banking arm of First HoldCo is in the tier one category in Nigeria and it is required to have at least N500 billion as its capital base because of its operations outside the country.
Business Post reports that the fresh 5,982,548,799 ordinary shares of First HoldCo listed on the bourse last Monday was at a unit price of N25, amounting to N149.6 billion.
Confirming this development, the NGX in a notice said, “Trading licence holders are hereby notified that additional 5,982,548,799 ordinary shares of 50 Kobo each at N25.00 per share of First HoldCo Plc were on Monday, April 7, 2025, listed on the daily official list of Nigerian Exchange (NGX) Limited.
The additional shares listed on NGX arose from First HolCo Plc’s rights issue of 5,982,548,799 ordinary shares of 50 Kobo each at N25.00 per share
“With the listing of the additional 5,982,548,799 ordinary shares, the total issued and fully paid-up shares of First HoldCo Plc have now increased from 35,895,292,792 to 41,877,841,591 ordinary shares of 50 Kobo each.”
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