Unity Bank suffers 63% drop in profit Q3

Unity Bank Plc has announced a 63 per cent decrease in profit after tax from N9.3 billion to N3.4 billion for the third quarter ended September 30. According to the company’s filing with the Nigerian Stock Exchange, the bank grew customers’ deposit to N263.91 billion at the end of the quarter ended September, indicating an increase of N32.5 billion or 14 per cent from N231.4 billion, as at December 31, 2015; a development that analysts have interpreted as a measure of customers’ growing confidence in the bank and increased business momentum.
The bank posted a profit before tax of N3.8 billion for Q3 2016, despite the challenging operating environment and economic challenges, a 63 per cent below N10.3 billion recorded in Q3 2015. Total assets size stood at N476.15 billion for the quarter ended 30 September, representing an increase of 7.4 per cent or N32.6 billion over N443.3 billion recorded as at December 31, 2015.
Furthermore, the various cost optimisation strategies and other operational overhauls, which were embarked upon by the new management of the bank saw operating expense plummet by 14 per cent or N3.1 billion to N19.6 billion against N22.8 billion recorded in Q3 2015.
While commenting on the result, the Managing Director, Unity Bank Plc, Mrs. Tomi Somefun, noted that “economic headwinds stifled business growth during the period, accompanied by increased inflation and foreign exchange illiquidity.”
She added, “Nevertheless, the bank remains firmly committed to delivering value to our stakeholders as the bank made profit on the back of an efficient balance sheet and cost containment initiatives.”
In addition, she emphasised that the bank has continued to maintain and sharpen its focus on executing strategic choices aimed at creating a large diversified bank with a strong retail/SME base, development of array of products and consolidating market confidence to boost its growth