UNITY BANK PLC: UNITED AGAINST SLIDE.

Obviously, but for united effort put together by streams of income other than from main stream banking, the nine months to September would have ended with great slide by Unity Bank PLC.
According to the figures released recently, interest income decreased by 9.32% to N35158m from N38140m while to make this much more unpalatable, interest expense increased by 9.40% to N14304.7m from N13075.9m.
The stage was thus set for huge drop in profitability especially as overheads other than personnel cost increased by 27% to N10575.6m from N8323.4m.
However, drop in profit before tax came to only 13.9% to N10349.8m as strong earnings from other streams combined to cushion the net interest depression.
Forex income closed at N1072.6m compared to N43.6m previously; net trading income more than doubled to N1203.6m from N389.9m; income from other sources ended September 89.5% up at N4592.6m from N2423.8m and fees and commission chipped in widows growth of 10.2% from N6511.8m to N7173.6m.
In addition, personnel cost eased by 0.23% to N10504.1m; and main book provisions for asset value loss also decreased. Of particular interest was the 20% drop in loan loss provision to N1744.9m although loans and advances to customers went down 9.57% to N240333.9m.
HENCE:
* As the year draws to a close the ace still lies in growing interest income to become less the one other income streams steer the boat against.
* The 3.87% drop in borrowed funds should help reduce associated cost but somehow too, customers deposits drive may be needed as well.

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