Unity Bank Gross Earnings Increased By N57 Billion In 2022 As Customer Deposits Increase
Unity Bank Plc offered its shareholders something to smile about despite the economic difficulties that many businesses experienced in the 2022 fiscal year as its profitability improved throughout the time under review.
According to the company’s 2022 audited full-year financial statements, which were submitted to the Nigerian Exchange (NGX) Limited, gross earnings increased by 13.1% to N57 billion from N50.2 billion in 2021, with pre-tax profit at N1.1 billion and net profit at N941.4 million.
A quick analysis revealed that the total comprehensive income increased by 262.1% to N1.2 billion from N744 million in the corresponding period of 2021, with the loan book growing by 7.5% to N289.4 billion from N269.3 billion and improving interest and similar income to N48.9 billion from N43.2 billion.
The revenue from fees and commissions increased significantly as well, increasing by 25.7% from N6.1 billion to N7.68 billion.
In addition, client deposits experienced modest growth, rising by 1.6% to N327.4 billion from N322.2 billion as the lender works to expand its retail footprint through the introduction of products aimed at various market segments.
Unity Bank also issued its unaudited financial results for the first quarter of 2023, continuing its upward trend with a 21% increase in earnings after tax to N1.04 billion from N869.2 million. In comparison to the N13.6 billion reported a year earlier, its gross earnings for the quarter increased by 17% to N15.9 billion.
The Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun, commented on the financial statements and said that despite the economic headwinds and volatility that characterized the operating environment in the 2022 financial year, the bank’s focus on regaining momentum is still reflected in the key performance indicators.
“There are highs and lows as we look at the gross earnings, with 13.7 per cent growth, increase in liquid assets by 7.5 per cent and deposits recording moderate growth of 1.6 per cent, while maintaining steady growth in profitability,” she said.
“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business,” she further added.
She ensures that the bank will put its attention on our strategic decisions and important development drivers as the new fiscal year begins in order to push all the indices and elevate growth to double-digit territory.
“The performance posted for Q1’23 in terms of the PBT, gross earnings, and other key indicators are strong reinforcement of adequate measures being adopted and a testament of our resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the financial year,” Mrs Somefun said.
She continued: “Since late 2022, the Bank has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding.”
“As part of our transformation journey, we will double down on these investments in the coming months to achieve our aspirations of (1) significantly reducing customer pain points and simplifying customer experience; (2) increasing the rate of customer acquisition; (3) expanding the frontiers of partnerships; and (4) ultimately developing new and sustainable income lines for the bank.”
She claims that as the bank broadens its offering of products and services to meet the changing demands of its prized clients, it will continue to focus on quick process automation, cost and resource efficiency, targeted value chain linkages, and brand awareness.
Analysts think that the bank’s expanding retail base, which is driving its repositioning strategy, is in line with market expectations, and that this is reflected in the growing demand for the bank’s products.
