Unity Bank eliminates non-performing loans

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Unity Bank Plc said it has derisked its balance sheet to get rid of toxic legacy assets and pave the way for improved return on shareholder value in the coming years.

The bank said the ratio of its non-performing loans stood at zero per cent, describing it as a clear indication of the management’s excellent risk assessment.

In its 2017 annual report, the bank said N16bn goodwill that arose from legacy merger issues had been written-off, adding that the one-off derisking strategy cleaned up the bank’s books and impacted the bottom line, leading to a net loss of N14.2bn in 2017.

The bank’s financial statement, which was made available to the Nigerian Stock Exchange, showed that its profit for the nine-month period to September 2018, which stood at N585.84m, declined by 76.07 per cent, when compared with the N2.44bn that was made during the same period in 2017.

An analysis of the financial statement showed that the bank’s N26.12bn gross income for the period was 59.8 per cent lower than the N65.02bn that was made in the corresponding period of 2017.

Presenting the facts behind the figures, the bank said although financial performance declined in 2017, it took the bold action to tackle the lingering effects of legacy problems.

In a statement on Friday, Unity Bank said its new board and management took firm and strategic actions in a bid to eliminate the drag in the bank, which was in the form of huge legacy non-performing loans.

 

Source: PUNCH.

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