Unity Bank announces 63% drop in profit after tax in Q3

Unity Bank Plc has announced 63 per cent decrease in profit after tax for the third quarter (Q3 2016) ended September 30, 2016 from N9.3 billion to N3.4 billion.

The bank posted a profit before tax of N3.8 billion for Q3 2016, despite the challenging operating environment and economic challenges, a 63 per cent below N10.3billion recorded in Q3 2016.

According to the company’s filing with the Nigerian Stock Exchange (NSE), the bank grew customer’s deposit to N263.91billion at the end of the quarter ended September, 2016 indicating an increase of N32.5billion or 14 per cent from N231.4 billion as at December 31, 2015; a development that analysts have interpreted as a measure of customers’ growing confidence and increased business momentum.

Total assets size of N476.15 billion for the quarter ended 30 September 2016 representing an increase of 7.4per cent or N32.6billion over N443.3billion recorded as at December 31, 2015.

Furthermore, the various cost optimization strategies and other operational overhauls which were embarked upon by the new Management of the Bank saw operating expense plummet by 14per cent or N3.1billion to N19.6billion against N22.8billion recorded in Q3 2015.

While commenting on the result, the MD/CEO of Unity Bank Plc, Mrs. Tomi Somefun, noted that “economic headwinds stifled business growth during the period accompanied by increased inflation and foreign exchange illiquidity. Nevertheless, the Bank remains firmly committed to delivering value to our stakeholders as the Bank made profit on the back of an efficient balance sheet and cost containment initiatives”.

In addition, she emphasized that the bank has continued to maintain and sharpen its focus on executing strategic choices aimed at creating a large diversified bank with a strong retail/SME base, development of array of products and consolidating market confidence to boost its growth trajectory”.

According to analysts, with the bank’s repositioning efforts and consistent focus to tap into the emerging opportunities in the enlarged financial services space within Nigeria, Unity Bank is poised to deliver quality banking services to emerging sectors in Retail/Small and Medium Enterprises, Commercial and the Agricultural value chain.

The bank currently has over 240 branches spread across all the six geo-political zones of the country and leveraging on its e-banking platforms and other delivery channels to meet customers’ expectations.

The bank is said to be building strong infrastructure for retail banking and the ongoing transformation initiatives will surely consolidate Unity Bank as a retail bank of choice, culminating in superior financial performance and value to all stakeholders.