Tomi Somefun
Tomi Somefun, the CEO of Unity Bank PLC

Unity Bank Plc, in a press release in response to a story by Nairametrics, has maintained it was on course with its recapitalization plans.

According to the bank, it was at

Advanced stages of the recapitalization program, with ongoing engagement with a number of potential investors. The Bank is confident that significant achievements will be recorded very shortly.

The bank also stated it was on the verge of becoming one of the leading financial institutions in the country, and that the expected injection of new funds would significantly boost its operations.

With the injection of funds expected to significantly boost its operations, the new capital will equally enhance Bank’s liquidity position as well as business growth and profitability.

Furthermore, with the exception of a negative capital base, underlying financial indices largely point to the potential existing for the Bank, including a liquidity ratio of 35%

Ongoing Reforms

The bank also stated that several reforms that had taken place and were ongoing.

  • Sale of toxic non-performing loan portfolio. This led to a de-risking of the Financial Position, creating a balance sheet completely healthy and free of NPLs. NPL is currently at 0%.
  • With a marginal Loan-to-Deposit Ratio of 3.6%, there is significant room for growth and the attendant income boost.
  • Improvement and automation of key processes
  • Optimization of the branch and other channel networks: This involves branch re-design, relocation or closures in some instances. This is geared to improve cost efficiencies while setting the Bank up to tap market potential in more viable market segments. This is still an ongoing exercise.
  • Invigorating our technology platforms to improve service quality, enhance customer analytics, and adapt rapidly towards changing market dynamics:
Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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