Unity Bank Grows 2021 Net Profit By 52.09%

Amid Partial AMCON Divestment

The board of Unity Bank Plc, on Friday presented its delayed audited financials for the full-year ended December 31, 2021, wherein it says it is yet unable to propose the payment of a dividend, despite a 52.09% growth in profit before tax as gross earnings inched marginally by 8.07% in the period.

This is just as the financials also revealed a 0.02% year-on-year drop in the stake of the Asset Management Company of Nigeria (AMCON) in the bank from 34.24% at the end of 2020, to 34.22%. Specifically, AMCON’s indirect holding reduced from 4,002,702,685 units in the prior year-end, to 4,000,845,460 shares, while still remaining the largest single shareholder of the bank.

According to the audited financials presented through the Nigerian Exchange Limited portal, gross earnings improved by N3.758bn or 8.07% from N46.526bn in the 2020 full-year, to N50.284bn; boosted by interest income of N43.181bn, compared to N39.119bn. The biggest contributor to interest income was the N33.074bn from customer loans and advances, up from N23.004bn; followed by financial investments- (comprising bonds- amortised costs of N5.607bn, which rose from N4.316bn; and treasury bills income of N1.88bn, up from N1.447bn). Interest expense increased from N21.372bn to N23.127bn, boosted by expenses due to banks that rose from N10.172bn to N11.739bn; deposits from customers which fell from N7.263bn to N5.119bn; and other borrowed funds of N6.256bn, an increase from the previous N3.92bn; resulting in a net interest income of N20.054bn, up from the previous N17.747bn.

Fee and commission income rose from N5.218bn to N6.117bn, helped mainly by the N3.043bn from electronic banking, compared to N2.642bn, the bulk of which was the N2.062bn ATM income, up from N1.903bn. Net trading loss dropped from N3.817bn to N1.307bn, after foreign exchange loss stood at N1.489bn from a gain of N434.297m; just as there was a zero net trading loss on financial instruments, compared to the prior year’s N3.817bn. Other operating income slowed down from N2.188bn to N985.717m. Total operating income stood at N25.849bn from N21.336bn; net remeasurement of ECL allowance on financial assets dropped to N2.563bn from N4.127bn, resulting in a net operating income of N28.413bn, up from N25.464bn.

Personnel expenses was kept under control at N10.536bn, from N10.408b; depreciation of property and equipment increased marginally from N1.695bn to N1.934bn; amortization of intangible assets stood at N50.905m, from N47.223m; and other operating expenses from N11.089bn to N12.559bn. Total operating expenses, therefore increased to N25.081bn from N23.241bn.

These left profit before tax at N3.332bn from N2.223bn; while profit after tax rose by N1.086bn from N2.086bn N3.173, closer to its 2019 full-year level. The net profit also represented earnings per share of 27.15 kobo, an improvement over the previous 17.85 kobo each.

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