By Aduragbemi Omiyale
In the third quarter of 2022, a retail lender, Unity Bank Plc, improved its gross earnings by 17 per cent to N42.2 billion from the N36.2 billion recorded in the same period of 2021.
A review of the Agric-focused lender’s unaudited nine-month results released to the Nigerian Exchange (NGX) Limited showed that this growth was influenced by the introduction of new products that are focused on deep penetration and driving volume in the retail market space.
The lender also substantially grew its interest income to N36.3 billion from N31.4 billion in the same period in 2021, creating a 15 per cent uptick from the value of the Bank’s loan asset portfolio.
The bank’s increased investment in digital banking platforms empowered its retail potential to deliver an impressive 17 per cent growth in fees and commission to N5.3 billion, closing September 30, 2022, from N4.6 billion recorded in the corresponding period in the year 2021.
While maintaining the retail expansionary and customer-centric business model, Unity Bank Plc continued its growth momentum as total loans and advances as of September 30, 2022, reported N284.2 billion, which represents a 6 per cent spurt from the N269.3 billion recorded in the corresponding period of 2021, even as the lender maintains strict compliance with the prevailing prudential guidelines.
Other key highlights of the 9-month financials included customer deposits of N334.7 billion, representing a 4 per cent increase from N322.3 billion in the corresponding period. The position underscores the increasing market uptake for the bank’s product innovation and mass-market-oriented retail focus that continues to boil wide acceptance across various segments of the mass market.
The lender’s performance comes on the heels of a fragile recovery from the global pandemic buffeted by economic headwinds, including rising inflationary trends, interest rate hikes, foreign exchange volatilities, etc., which have impacted the overall economic outlook in the country and the rest of the world severely.
Also, Unity Bank reported a profit before tax of N2.206 billion and a post-tax profit of N2.029 billion, 5 per cent higher than the N1.9 billion recorded in the same period of 2021.
Commenting on the results, the Managing Director/CEO of Unity Bank Plc, Mrs Tomi Somefun, said that the outlook for the full year 2022 remains positive, reflecting optimism, stability, and growth in key performance indicators.
She noted that the growth trajectory recorded in the bank’s revenue (17%), Profit (5%), and deposit (4%), etc., is a testament to the positive sentiment in the market, especially at a time the market is experiencing a downturn with high inflationary trend and volatility which impacts negatively on the operating environment.
She stated that “as we take further bold and audacious steps to round up the year on a stronger note, the Bank will create more initiatives even in the very short term to broaden its retail focus, ride on novel technology and digital Banking to push aggressively on product marketing in addition to major activations in identified market segments to attract sustainable streams of income for the bank.”
“The outlook for our financial position for the current year is bright as the bank is increasingly innovating with products and collaborative strategies to diversify our portfolio businesses while taking advantage of robust technological resources to take on mass market & the unbanked sector, thereby boosting income and liability generation and financial inclusion of the banking ecosystem,” she said.
In the view of analysts, the growing retail franchise of the lender will create a sustainable income with a stronger foothold in the market, which will impact business growth and the financial position of the bank.
Adedapo Adesanya