The management of Unity Bank Plc, at the weekend assured that its recapitalization project is currently at an advanced stage, especially after conscious steps to ensure a juicy deal to existing and potential investors.
Following this strategic engagements with potential investors, the bank in an explanatory note, expressed extreme confidence “that significant achievements will be recorded very shortly,” helped by steps the board and management have so far taken.
These it added, include a deliberate and full de-risking of its balance sheet with the sale of its entire N436bn Non-Performing Loans.
Due to the loan book clean-up, it continued, existing and potential investors will have in a zero per cent Non-Performing Loan (NPL) ratio, made even better by the decision to write off its entire N14.2bn legacy goodwill and legacy loans in the 2017 full-year report.
The loan book clean-up, means the fresh capital to be invested would be unencumbered and make Unity Bank a leading financial institution in the country, with strong liquidity and enhanced working capital, among others.
“Along with the sale of NPLs, the Bank’s risk framework has been overhauled, with greater investment in risk analytics, processing, collateral coverage, amongst other measures. This is to ensure that the problems of the past do not recur and that a healthy risk portfolio is maintained going forward,” it stressed.
The progress being made on the ongoing capital raising, the management assured, puts Unity Bank “firmly on course to achieve sustainable growth and sound performance.”
These strategic initiatives, amongst others, the bank explained, “are geared towards a complete transformation of Unity Bank and setting her up on the path of strong and sustainable growth and profitability.”
Also, while describing the decision to clean up the observed issues pushing it into a negative capital base as “courageous,” Unity Bank said there was a good side, because it delivered “a leaner, smarter and dynamic bank with a healthy balance sheet.
As part of the strategic decision, it said, the bank has undertaken “process reviews and automation towards achieving improved service delivery and a customer-centric outlook.”
This, it continued, is in addition to investment in technology and product line up, which has now properly positioned it “to leverage on current and emerging market trends, improve service delivery and boost e-business.”
Going forward, the management spoke of plans is implementing and shaping Unity Bank to become dynamic and serve the customers of the future, with a revised market focus on “providing significant support for the economic growth plan of the Federal Government, key area of focus for the bank are identified in the area of agriculture and agro-allied financing; Financial Inclusion with specific attention to: Youth & Digital Banking and Women Financing; (as well) MSME Banking.”
There are also ongoing plans for bold and specific steps that eliminate wastage, and significantly improve efficiency in such areas as improvement and automation of key processes; optimization of branch and other channel network; invigorating our technological platforms to improve service quality, enhance customer analytics, and adapt rapidly towards changing market dynamics.
The audited financials for the 2017 full year shows 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.