Unity Bank Plc Quarter 1, 2022 Results


Gross income of Unity Bank Plc gained 18.2% year-over-year to NGN13.6 billion in the first quarter of the 2022 financial year. Interest and similar income was responsible for a rise in gross income;  interest income jumped 23.5% to close at NGN11.9 billion as at 31st March 2022. 87.8% of gross income was attributable to interest and similar income in the first 3 months of 2022 compared to 84% in the corresponding period of the previous year. Fee and commission income dropped 6.1 percentage points to NGN1.5 billion. Gross loans moved up from NGN227.5 billion to NGN304.6 billion while provision for impairment declined marginally from 1.7% to 1.1%. The bank was able to grow its deposits from customers.  However, the bank's total equity remained negative owing to accumulated losses.

Jan.-Mar. 2022 ( NGN'Millions)Jan.-Mar. 2021 ( NGN'Millions)% Change
Gross Income13,602.811,503.918.2%
Profit Before Tax944.9784.320.5%
Profit After Tax869.3721.520.5%
  • Shareholders' wealth eroded owing to losses accumulation over the years

Shareholders' value has deteriorated owing to the difficulty in making profits regularly. There is not enough profit or reserve to wipe off accumulated losses. Return on equity was negative and investors were neither compensated by dividends nor capital appreciation. Total equity was -NGN273.9 billion at the end of quarter 1, compared to NGN276.2 billion declared at the 2021 year-end.

  • Net interest margin dropped while PBT and PAT margin improved slightly

Net interest margin fell from 41.8% in quarter 1 of 2021 to 38.7% in the corresponding period of 2022; this was due to the fact that loan expansion outpaced deposit growth. However, both Profit Before Tax and Profit After Tax margins gained 10 basis points each.

  • Undercapitalisation

Unity Bank Plc is inadequately capitalised. It falls short of regulatory capital requirements.

Unity Bank Plc is a national bank that began operations in 1987. It provides retail, corporate and investment banking services in over 200 locations across Nigeria.  READ THE FULL REPORT ON UNITY BANK PLC HERE

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