Unity Bank Plc has announced its audited financial result, which showed gross earnings of N78.8 billion for the financial year ended December 31, last year, compared with N77 billion earned during same period of 2014.
However, the Profit After Tax (PAT) dropped to N4.6 billion from N10.6 billion PAT recorded in 2014 financial year.
The bank said 2015 performance was achieved in spite of the challenging operating environment characterised by a continued lull in the economic activities in the economy as well as major regulatory headwinds like the implementation of Treasury Single Account (TSA) that cut earnings during the period.
The bank said its new management inherited huge legacy of non-performing loans from the general commerce and manufacturing subsectors and believes that the impairment charge in Year 2015 was necessary in order to give new breath of life to the institution.
It said the new management is embarking on enormous tasks to position the lender for proper clean-up and de-risking of its balance sheet, to create huge businesses that will help drive its growth and transformation initiatives.
The bank also grew its assets by seven per cent from N413 billion in 2014 to N443 billion in 2015, amid shrinking economic indicators, measurement and regulatory policies that affected deposit portfolio during the year under review.
While commenting on the result, its Managing Director/CEO, Tomi Somefun noted that “with the bank’s repositioning efforts and consistent focus to tap into the emerging opportunities in the enlarged economic space within Nigeria, it is committed to deliver quality banking service to emerging sectors in retail/Small and Medium Enterprises, commercial and the agricultural value chain.
The bank, she said, is building strong infrastructure for retail banking and attracting youths for its sustainable banking business by developing customer-centric products to meet the needs of its esteemed customers and build new clientele base.
“With the bank’s capital raising exercise, the year ahead is bright as the effects of the on-going transformation initiatives will surely consolidate Unity Bank as “a retail bank of choice”, culminating in superior financial performance and values to all stakeholders,” she said.
She disclosed that the bank relocated its head office to Lagos from Abuja in March this year, a step that has led to positive impacts felt by its businesses nationwide.
“The bank is now in a better position to tap into the core commercial hub of Lagos by leveraging on the huge retail spin-offs/opportunities and harness the diverse business potentials provided by population, port and patents for excellent service delivery to its esteemed customers. It has started to witness increased businesses from the corporate, commercial and retail segments of the market with a strong resurgence,” a statement from the lender said.