Unity Bank Plc management has pledged to retain its long- term business model and growth strategy on agriculture, SMEs and rural economy following its recovery from the non-profitability of the post-merger years in 2014 with over N13 billion profit and the successful completion of rights issue and special placement of about N40 billion.
Speaking at the Facts Behind the Figures on the Nigerian Stock Exchange (NSE), Wednesday, the bank’s Managing Director, Mr. Henry James Semenitari, explained that its growth strategy “borders on strict operational efficiency, derived from business model and strategic intent.”
He said, through people, processes such as product differentiation, value proposition and procedures that will impact sustainability.
Making three years projection, Semenitari stated that the bank hoped to attain a PBT of N20.3 billion by the end of 2015; N26.1 billion in 2016 and N30.4 billion in 2017.
Its loan growth was projected to be N228.7 billion for 2015 to N250.5 billion in 2016 and N282.8 for 2017.
The banks three year financial projection on total asset was to grow from N228.7 billion in 2015 to N250.5 billion in 2016 and N282.8 billion for the financial year ended 2017. While its shareholders funds looks to advance from N93.3 billion in 2015 to N138.3 billion in 2017.
Net interest Margin (NIM) was projected to grow by 10 percent, while return on equity was to grow by 23 percent, and NPL ratio amongst others was proposed to grow by 10 per cent for the financial year 2015.
The bank had recorded a N13.64 billion profit before tax for the period ended 31st December 2014, after its loss of N33.64 recorded in the same period of 2013.
The bank also recorded an improvement of 219 per cent in operational efficiency with a cost to income ratio reduction from 284 per cent as at December 2013 to 69 per cent as at 31st December 2014.
Weighted average cost of funds also improved to 5.4 per cent in 2014 from 8 per cent in 2013 on account of the growth in low cost deposits.
Total Assets of the bank increased from N403.6 billion in December 2013 to N413.3 billion in December 2014.
Semenitari said 2014 could be termed as a year of recovery to which steady progress should be expected, saying, “Our growth strategy is strictly that of operational efficiency derived from our businesses model and strategic intent. This would result in improvement in all key indices as already shown in our 2014 result.”