Unity Bank Plc released its 2013 FY results showing a loss per share of 78kobo a huge decline from the 21 Kobo posted a year earlier. Here are highlights of the result;
- Net Interest Income increased 19% t0 N30billion compared to N25billion a year earlier
- Net interest margin was however 57% compared to 61% a year earlier signifying a rise in cost of deposits
- Loan write offs was a major issue during the year as well as the bank wrote of loans amounting to N22.5billion during the year. N18.8billion of these write offs was carried out in the last quarter of the year
- This sent operating income tumbling down to N18.2billion a 49% drop from N36billlion a year earlier.
- Operating expenses aloe rose 75% to N51.8billion (2012: N29.6billion) helping condemn the bank into a loss before tax of N33.6billion.
- Cost to income ratio by our estimate was a whopping 127%
- Loan losses basically wiped out 75% of Net Interest Income.
- A tax credit of N11billion helped reduce the losses with the company posting a loss after tax of N22.8billion (2012 PAT: N6.1billion)
- Retained earnings ballooned 685% to N58.7billion
- Return on average equity was -56.7%