Unity Bank’s annual profit rises to N3.33bn

Unity Bank Plc has declared a profit before tax of N3.33 billion in the financial year ended December 2021.

The figure indicates a 49.9 per cent increase from the N2.22 billion recorded in 2020.

In its 2021 full-year result filed with the Nigeria Exchange Group (NGX), the bank also posted 8.1 per cent growth in gross earnings to N50.28 billion from N46.52 billion in 2021.

The financial statement showed improvement in its bottom line as profit after tax rose by 52.1 per cent to N3.17 billion from N2.09 billion recorded in the corresponding period of 2021.

The development comes on the heels of a faster than expected recovery from the disruptions of the COVID-19 pandemic, which provided an opportunity for the lender to expand its retail footprint through strategic product offerings that appealed to broader segments of the market.

Another key highlight of the agribusiness-focused lender’s financial performance is the growth of its assets, which rose by 9.5 per cent to close at N538.87 billion from N482.02 billion in 2020, cumulating three years of consecutive high growth. 

Commenting on the result, Tomi Somefun, managing director/CEO, Unity Bank Plc, said that the key performance indicators have continued on a trajectory of healthy balance sheet growth, asset quality and profitability achieved on the back of deft diversification of the bank’s earnings base that balances out fairly in asset creation, investments and trade activities and riding on the innovative customer-centric product offerings for both the retail and consumer segments of the market.

Somefun expressed optimism that given the increased focus of the bank on growing its retail footprints supported by significant investment being made in technology to expand its digital banking space, the growing contribution of the channels and platforms delivery will further boost the multiple streams of income in the coming years. 

She further stated, “the Bank’s growing profile in agribusiness has now placed it on a pedestal that enables it to attract significant value chain businesses for the continuous growth of its Retail and SME Banking whilst the Bank consistently deploys product development/marketing initiatives to further grow the brand franchise, maximise the benefits and boost retail growth to double digits”.

The bank’s assets also increased by 39 per cent and 67.9 per cent in 2019 and 2020, respectively, to see a rebound in its profitability for two successive years.

In the year under review, the lender said it grew its loan portfolio significantly, increasing by 33.2 per cent to N269.27 billion from N202.08 billion, following the bank’s aggressive focus on boosting its liquid assets base.

Another top-line performance of the audited financial statements recorded was growth in the lender’s net operating income, which rose to N28.41 billion from N21.3 billion in the corresponding period of 2020, representing a 10.9 per cent increase. This is even as the net interest income recorded a significant jump of 12.2 per cent to N20.05 billion from N17.74 billion in the corresponding period of 2020. Earnings per share closed at 27.15 kobo.