Unity Bank Plc has notified the investing public of a revaluation loss due to the Naira devaluation, as a result of the acute shortage of Forex, which created an inclement business environment and set in an economic headwind.
Despite this challenge, Unity Bank Plc posted gross earnings of N59.3 billion for the full year ended December 31, 2023, representing a growth of 3.84% year-on-year.
The Bank’s audited financials, submitted to the NGX Group Limited, also showed improvements across key performance indicators. Customer deposits appreciated by 23% to N402.9 billion from N327.4 billion, indicating sustained retail growth and customer confidence.
Other key highlights of the full-year results include total assets of N472.5 billion, net fee and income commission of N5.2 billion and an increase in interest income by 9.6% to N53.7 billion from N48.8 billion.
Commenting on the results, the Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Oluwatomi Somefun, noted that the Bank had issued a profit alert to reflect the revaluation loss arising from Naira devaluation.
“The Bank had issued a profit alert to reflect revaluation loss arising from Naira devaluation which was due to the acute shortage of Forex that created an inclement business environment and, on the aggregate, set in an economic headwind,” Mrs. Somefun said.
However, she emphasized that the key performance indicators are rebounding from the low level of growth and negative trends that characterized the year.
“As we begin to see the margins being closed, it is an indication that the measures being taken to revamp all aspects of the business is being well received by the market: be it workable recapitalization plan, aggressive drive for asset creation, product innovation, or digital banking,” Mrs. Somefun stated.
“We will need to covet the improvements and further build upon it. As a corporate brand, we have a lot that is keeping us going: the positive sentiments and optimism, the growing franchise of the business and steady growth in different segments of the retail market across all the geo-political zones of Nigeria.”
She added, “We have the right indicators to reclaim lost grounds – innovating with the development and soon to be launched an omnichannel digital app to improve reliability, customer experience, support diverse products functionality which will impact earnings, income and profitability.”
Despite the Bank’s efforts to revamp its business, the revaluation loss due to Naira devaluation raises concerns about Unity Bank’s financial stability. This development has sparked fears that Unity Bank may be facing financial difficulties, prompting concerns about its ability to meet its financial obligations.
The Bank’s financial woes may be a sign of deeper underlying issues, which could impact its ability to provide services to its customers.
As the Bank continues to navigate the challenging economic environment, it remains to be seen whether it can recover from its current financial difficulties.
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