UNITY BANK NOT HIT BY NAIRA BUT.....

Unity Bank PLC is not directly threatened as such by the continuing downswing in the value of the Naira but more by the depression in the economy made more biting by Naira's fate.

According to the nine months figures to September released recently what Unity Bank needs desperately is increased income because most streams are delivering less

Over all gross income by September was down 28.5% to N35173.9m driven by 39% drop in mainstream interest income to N21150.6m; and 81.5% decrease in fee and commission to N1300.5m.

Amongst the traditional income sources, only other operating income recorded 10.7% rise to N5085.1m.

In fact, Naira value drop ended with an effective prop for Unity Bank as asset revaluation as a result of this chipped in N5472.9m compared to N1072.1m previously.

Equally helpful was 91.7% drop in impairment provision to  just N144.6m but interest expense decrease by 19.4% to N11525m; that is far short of the interest income dive; did not quite help too.

As for factors more under management control there was more glaring success. Personnel cost eased to N10312.7m from N10504.1m and other operating expense at N7935.5m was about a quarter down.

Unfortunately, the dive in income was too major to handle and so, Unity Bank ended September with N3806.2m profit before tax representing 63.2% decline on previous level.

Indeed, because even this profit was lower than the paper profit from asset revaluation, obviously Unity Bank PLC would have ended with loss but for the revaluation.

UNITY BANK PLC: Nm Nine months
                          2016.          2015
Gross income 35173.9.    49200.9
Interest inc.     21150.6.   35158.9
Interest exp.   11525.0.    14304.8
Fee & Comm.  1300.5.       7173.6
Revaluation     5472.9.       1072.1
Other op. Inc.  5085.1.        4592.6
Credit loss         144.6.        1744.8
Personnel       10312.7.     10504.1
Other op. Exp  7935.5.      10575.6
Profit b4 tax.    3805.2.     10347.8

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