The Central Bank of Nigeria (CBN) has denied planning to nationalise Unity Bank Plc as alleged by an online news medium.

Reacting to the report, the Acting Director, Corporate Communications Department, CBN, Osita Nwanisobi, described it as, “fake news” and should be discarded in its entirety
“The report is fake news. There is no iota of truth in it. The public should disregard such news,”Directir of CBN said.
The report had claimed that CBNs target examination of Unity Bank showed that the Tier 2 lender is in ”grave financial condition”, with Capital Adequacy Ratio (CAR) and Non- Performing Loans (NPL) ratio that breached prudential standards.CBN
However, analysts note that just last month, the CBN’s Monetary Policy Committee ( MPC) noted in the communiqué it issued at the end of its meeting that the banking industry is in good health.
According to the communique: “the Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR) both remained above their prudential limits at 15.8 and 38.9 per cent, respectively. The Non-Performing Loans (NPLs) at 5.89 per cent in April 2021, showed progressive improvement compared with 6.6 per cent in April 2020.”
Unity Bank’s audited FY’ 2020 results showed improved performance in key parameters. For instance, the Bank’s gross loans portfolio increased by 92.9 per cent to N206.2 billion in 2020 from N106.9 billion in 2019. The bank’s total assets rose by 67.90 per cent when compared with N293.05 billion achieved in the comparative period of 2019. Also, the lender posted gross earnings of N42.71 billion compared with N44.59 billion recorded in the comparative period of 2019, reflective of its business and economic realities of the time.
Its customer deposit portfolio grew by 34.4 per cent to N356.62 billion in 2020, up from N257.69 billion posted in the corresponding period of 2019. Profit after tax stood at N2.09 billion, while profit before tax was N2.22 billion during the year under review amidst the tough macroeconomic environment where it operated. Its net operating income rose to N25.46 billion from N23.21 billion in the corresponding period of 2019, representing a 9.71 per cent increase.
This is even as the net interest income recorded a significant jump, as it rose by 7.60 per cent to N17.75 billion from N16.49 billion in the corresponding period of 2019.
Furthermore, the bank sustained the growth momentum demonstrated in its 2020 full year earnings as it recorded an impressive performance of 43 per cent in both profit before and after tax in Q1 2021.
The Bank’s unaudited Q1 results show that the retail lender profit before tax (PBT) grew by 43 per cent to N784.3million from N550.1 million recorded in the corresponding period of 2020.
The profit after tax (PAT) for the period, which also grew by 43 per cent stood at N721.5million compared to the N506.1million recorded in Q1 2020.
As an outcome of increased focus on supporting local enterprises and industry, the asset portfolio also showed significant growth in loan book of 76 per cent as net loans and advances to customers increased to N223.2 billion, from N126.6 billion recorded in the corresponding period.
The total assets of the bank for the period showed an appreciable growth of 42 per cent to close at N521.5 billion, from N366.8 billion in the corresponding period of 2020.
The balance sheet of the bank had been considerably de-risked with the non-performing loan (NPL) ratio of near-zero per cent, which it has consistently maintained over time. With this, the bank ranks topmost in risk management assessment.
The bank recorded gross earnings of N11.5 billion, representing a marginal decline of three per cent when compared to N11.9billion posted in the corresponding period of 2020. The bank has assuredly intensified its recapitalization efforts by the recent updates the lender provided to the supervisory authority and significant mileage is currently being recorded as part of its corporate transformation and renewal programmes.

RELATED ARTICLESMORE FROM AUTHOR

47 COMMENTS

  7. Great post. I was checking constantly this blog and I am impressed! Extremely helpful info specifically the last part 🙂 I care for such info a lot. I was seeking this particular info for a very long time. Thank you and good luck.

  8. great submit, very informative. I’m wondering why the other specialists of this sector do not notice this. You should continue your writing. I am confident, you have a huge readers’ base already!

  10. Hey, you used to write magnificent, but the last few posts have been kinda boring… I miss your tremendous writings. Past several posts are just a bit out of track! come on!

  12. I’m curious to find out what blog system you have been working with? I’m experiencing some minor security issues with my latest blog and I would like to find something more safeguarded. Do you have any suggestions?

  14. What i do not realize is if truth be told how you’re no longer actually a lot more neatly-appreciated than you might be now. You’re so intelligent. You know therefore considerably in terms of this subject, made me personally consider it from so many numerous angles. Its like men and women don’t seem to be interested unless it?¦s something to do with Girl gaga! Your individual stuffs great. All the time care for it up!

  16. I like what you guys are up also. Such clever work and reporting! Keep up the superb works guys I?¦ve incorporated you guys to my blogroll. I think it’ll improve the value of my site 🙂

  17. Hello, i feel that i noticed you visited my blog so i came to “go back the prefer”.I’m attempting to find issues to improve my web site!I guess its ok to use a few of your ideas!!

  18. Hey would you mind sharing which blog platform you’re using? I’m looking to start my own blog soon but I’m having a tough time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique. P.S My apologies for being off-topic but I had to ask!

  19. Hi, i think that i saw you visited my weblog so i came to “return the favor”.I’m attempting to find things to enhance my site!I suppose its ok to use some of your ideas!!

  20. Aw, this was a very nice post. In thought I wish to put in writing like this additionally – taking time and actual effort to make an excellent article… but what can I say… I procrastinate alot and on no account appear to get one thing done.

  25. Hey there would you mind letting me know which hosting company you’re using? I’ve loaded your blog in 3 different browsers and I must say this blog loads a lot faster then most. Can you suggest a good hosting provider at a honest price? Thanks a lot, I appreciate it!

LEAVE A REPLY

Please enter your comment!
Please enter your name here