By Peter Egwuatu

Unity Bank Plc has stated that its renewed strategy following the completion of its consolidation has started bearing fruits as it recorded a tremendous growth from a loss position of N33.64 billion in 2013 to a profit position of N13.6 billion in 2014, just as the Net Interest Margin, NIM improved over the last three years.

The Managing Director/ CEO, Unity Bank Plc, Mr. Henry James Semenitari, who disclosed this at the bank’s presentation of its Fact Behind its financials for the year 2014 at the Lagos floor of the Nigerian Stock Exchange, NSE said “Our renewed and growth strategies are strictly that of operational efficiency derived from our business model and strategic intent. The result has led to improvement in all key indices as already shown in our 2014 result.”

He stated that the growth is expected to continue in the foreseeable future, stressing that the bank has focused on emerging middle market businesses and entrepreneurs, in line with its vision of retail bank of choice. Speaking to the capital market community, Semenitari said “Our focus on the rural economy is premised on its strategic importance to first level agriculture, entrepreneurship and attainment of financial inclusion strategy of reaching out to the unbanked populace.”

According to him “We successfully completed our rights issue and special placement of about N40 billion. The offer was oversubscribed.” While commenting on the bank’s financial performance, he said “The bank has recorded 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. Our weighted average cost of funds improved to 5.4 per cent in 2014, from 8 per cent in 2013, on account of the growth in low cost deposits.”

Other performance indicators according to him include the Net Interest Income, NIM which has grown steadily over the last three years, just as the liquidity position being stabilizing. “ We have recorded significant drop in costs, illustrating efficiency gains” he added.

On the outlook for the bank, Semenitari said “Our projections for 2015 include : NIM 70 per cent; Return on Equity 23 per cent; Return on Assets 4 per cent; Capital Adequacy 10 per cent; Liquidity Ratio 40 per cent and cost of funds 5 per cent. The future is bright as agriculture remains a major strategic focus of the bank based on its historic strength.”