FULL YEAR RESULTS: Unity bank, Omoluabi Savings & Loans


UNITY BANK PLC: A YEAR TO FORGET.

For Unity bank PLC, financial year 2015 was a year better to forget.
According to the full year figures released not too long ago, it was of drops when increase would have better and increases when drops were more appropriate.
There were some exceptions though. At least fee and commission income increased by 4.94% to N9251.7m ; loss through fair valuation of financial instruments dived from N280.1m in 2014 to N20.9m and net trading income closed 84.8% up at N2688.6m.
But none of these could effectively neutralise very marginal 0.12% increase in interest income to N62711.2m accompanied by 14.2% increase in interest expense to N19619.2m
Not to talk of 56.1% increase in impairment provision to N27122.2m, 5.65% rise in other operating expenses to N13076.1m and 3.68% increase in personnel cost to N14395.5m.
Hence from a marginal 1.91% increase in gross earnings to N78826.9m, Unity bank ended with 82.8% decline in profit before tax to N2342.7m from 2014's N13639.4m
In other words, within 2015, Unity bank lost its 2014 double digit 17.6% profit margin to settle for only 2.97%.

UNITY BANK PLC: (Nm)
                            2015.           2014
Gross earnings 78826.9.    77348.5
Interest income 62711.2.   62635.5
Interest expense 19619.7. 17184.6
Fee & comm.       9151.7.     8816.0
Net trading.          2688.6.    1454.6
Fair value income (20.9).   (280.1)
Other op. Income 4175.2.   4442.4
Impairment.         27122.2. 17369.5
Personnel cost.    14395.5. 13884.0
Other op. Expense 13076.1 12376.4
Profit before tax       2342.7.13639.4
Profit margin %         2.97.       17.6

OMOLUABI SAVINGS & LOANS: ONE LONE RANGER

The loss of N161.5m reported by Omoluabi Savings and Loans PLC for 2015 year would have been much higher but for the lone ranging decrease in other operating expenses recorded.
It dropped by 50.3% to N67.2m from N135.2m aided of course, by 77% drop in less weighty impairment provision on quoted stocks to N6.61m and 88.4% decline in equally light weight interest expense to N0.11m.
The core of the years aches came from 16.1% decline in total income to N214.1m atop 7.28% decrease in interest income to N202.5m
This resulted from 53.2% decrease in investment income to N2.24m, 73.5% drop in fee and commission to N3.15m and 69.1% tumble in other income to N6.25m.
To cap it all, personnel cost rose by 18.8% to N54.4m and impairment provision on loans jumped to N258.1m from N39.4m.
The net result? Well Omoluabi Savings and loans landed rather squarely in the loss league as against N62.7m profit in 2014,

OMOLUABI SAVINGS & LOANS: Nm
                            2015.          2014
Total income.    214.14.       255.2
Interest income 202.5.         218.4
Interest expense 0.11.           0.95
Fee & Comm.      3.15.          11.9
Investment inc.   2.24.            4.79
Other income.      6.25.           20.2
Personnel.           54.4.            45.8
Other op. Exp.     67.2.           135.2
Stocks loss pro.   6.61.           28.8
Loan loss pro.    258.1.           39.4
Profit B4 tax.      (161.5).        62.7
Profit margin %  (75.4).          24.6

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