Post Views: 443 The management of Unity Bank Plc, on Friday said filing of its audited financials for the year ended December 31, 2017 was delayed by ...
The management of Unity Bank Plc, on Friday said filing of its audited financials for the year ended December 31, 2017 was delayed by some corporate actions, particularly discussions with prospective investors.
This, the bank said in a statement by Mohammed Shehu, its company secretary, necessitated extensive reviews by our primary regulator (the Central Bank of Nigeria)”
As a result, the bank said it consulted extensively with both the Nigerian Stock Exchange (NSE) and CBN, following which it obtained extension of up to October 31, 2018.
The statement further assured stakeholders of the bank “that discussions with our prospective investors are progressing according to plan and will be concluded shortly, following which necessary regulatory approvals would be sought and announcement made.
A review of the bank’s balance sheet however paints an even gloomier picture, given the total assets of N156.506bn, down by N336.175bn or 68.23% from N492.681bn in the 2016 full year. Total liabilities declined to N398.699bn, from N409.574bn, with customer deposits falling to N252.31bn from N264.196bn.
The 2017 financials show that the Asset Management Corporation of Nigeria (AMCON) is the biggest shareholder, with 4.024bn shares, or 34.42%; followed by Pan African Capital Nominee with 1.48bn units, representing 12.67%; while Thomas A. Etuh holds 1.053bn or 9.01%. Other shareholders above 5%, according to the bank, include Ibad Limited, 717.722m units or 6.14%; El-Amin (Nigeria) Ltd, 615.889m shares, representing 5.54%; bringing the cumulative stake of the majority shareholders to 67.76%, same as in the corresponding period of 2016.
According to the audited financials presented to the NSE on Thursday, Unity Bank’s external auditors- Ahmed Zakari & Co, drew attention to the bank’s ongoing recapitalization plans, with prospective investors already undertaking due diligence on the bank. The recapitalization is geared towards reversing Unity Bank’s negative capital adequacy ratios, based on IFRS and CBN Prudential Guidelines impairment criteria.
The auditors also noted plans to clean up its Non-Performing Loans (NPLs) portfolio, with the disposal of N436bn toxic loans comprising commercial, insider related and intervention loans.
On the NPLs sale, the board said in the notes to the account, that CBN approval had been obtained as part of its recapitalisation strategies, “to dispose all its NPLs to an institutional assets management company.
“Consequently, upon payment of the initial consideration by the debt buyer, Loans and advances with a gross amount of N436bn have been derecognized, along with the associated IFRS impairment and Regulatory Risk Reserves. This follows the conclusion of the transaction in line with a Transaction Implementation Agreement (TIA) and a Sales and Purchase Agreement (SPA) signed with the institutional assets management company,” it added.