The managing Director of Unity Bank Plc Tomi Somefun has disclosed that the lender has started reaping from its multiple streams of income which include asset creation, investments and other trade activities.
The bank’s boss stated this following the release of its half year results by the Nigeria Stock Exchange, NSE.
The results for the period ending June 2019 indicate upward performance in all core indices, better than the results posted within the same period 2018.
Somefun stated that the Bank’ s increasing focus core areas of strength such as agribusiness and retail, automation of more processes with the aim of cutting down wasteful expenditure and constant improvement of service delivery through the use of internally developed solutions saved the Bank huge sums in cost.
Analysts insist that the bank’s performance is a pointer to increasing prospects to remain strong and stable among its peers.
The agri-friendly Bank recorded a growth in profitability by over 96 percent as its profit before tax stood at N1.052bn as against N536m in the preceding year 2018.
A review of the Bank’s performance also shows significant improvements across key financial metrics such as the earnings assets and gross loans.
The Bank recorded a quantum leap in its earning assets by 62 percent, leading to higher income and grew its gross loans by 456 percent. This increase was also bolstered by increase in investment securities (holdings of Treasury Bills and Bonds) which led to 23 percent growth in interest income.
According to a statement, the bank said gross earnings grew by 17 percent, while operating expenses reduced by 20 percent.
The figures released by the tier two bank also indicates earnings per share improved by 66 percent to 17.99kobo for the period ended June 30, 2019 compared to 10.86kobo in FY 2018; with PBT Margin, Net Assets per share and ROA improving by 1.3 percent, 0.2percent and 0.2percent respectively.
This performance is supported by the bank’s effort to improve asset utilization which reduced the need for asset acquisition, translating to lower depreciation and amortization expenses, with this cost declining by 27 percent from the comparative period of 2018.
Focus on Agribusiness through the bank’s partnership with the Central Bank of Nigeria (CBN) also grew, the release said.
Further strategic initiatives adopted by the bank include the implementation of various staff optimization strategies which led to marginal decline of six percent in personnel costs.
Staff allocation was also better streamlined to leverage capacity for improved productivity, the bank stated.