Unity Bank grows profit by 150% in Q3 2019, posts gross earnings of N31.3Bn

Unity Bank PLC has announced its Q3 2019 results recording impressive growth in earnings, profitability, total assets, loans and other financial measures.

The Bank’s profit accelerated to N1.611bn for the 3rd quarter ended 30th September, 2019 representing 150 percent increase compared to N644m recorded in the comparative period ended 30th September, 2018. Its gross earnings also grew 20 percent from N26.1bn to N31.3bn during the same period under review.

Similarly, Profit After Tax (PAT) increased by 147% to N1.482bn in Q3 2019 from N601m in the comparative Q3 2018. This result was achieved on the back of improved underlying business efficiency and strong, sustainable earnings capacity riding on its strategic growth focus.

In its unaudited financial statements, released to The Nigerian Stock Exchange for Q3, 2019, the Bank recorded significant improvements across key financial metrics such as the loans & advances, financial instruments, savings and its total deposits portfolio despite the challenging macro-economic environment where it operates. The Bank recorded a 38% increase in earning assets base particularly the growth in its gross loans by 124% leading to higher income to the Bank.

In the same vein, operating expenses declined by 10% indicative of continued process improvements, operational efficiency, lean structure and optimization measures embarked upon by the Bank. The Bank’s stringent cost optimization strategies and process automation enable it cut off wasteful expenditure, as service delivery improved. All of which were achieved using internally developed solutions and collaborations with its strategic partners, thus further saving costs.

The Managing Director/CEO, Mrs. Tomi Somefun, commenting on the Bank’s third quarter results said: “Diversifying our stream of income into other assets and trade activities have been impactful and have led to increased earnings for the Bank.”

She further stated that despite the uncertainties that characterized the business environment, doubled-down by double digit inflation rate all year, the resilience of the Bank has seen it ride the waves and remain consistent with its strategic business continuity framework and its commitment to excellent service delivery to its customers. The opportunities in the Agribusiness also continue to provide backbone to diversify earnings base in the retail market and leveraging on the value chains the Agribusiness offers in building scales and growth.

Speaking on prospects for the organization, she asserted that “the Bank is completely out of the woods and facing even brighter prospects ahead particularly counting on experiences gained from the past and putting in place dynamic strategy to further penetrate the market, maintain quality of assets creation, grow multiple income streams and bottom-line”.

Analysts are of the view that the resurgence and strong positive outlook for the Bank is attributable to the business model which is increasingly resonating with many segments of the retail market.