Unity Bank: Profit moves stronger despite challenges in banking sector
By Philemon Adedeji
Introduction
For the 2021 Financial year, Unity Bank Plc recorded more sales than it did in the corresponding year. Such better sales however translate in huge profit. In fact profit before tax for the year was higher than that of corresponding year. The interplay between a higher turnover and a higher profit had a upsizing impact on the bank’s profitability ratio
Growth Indices
For its 2021 financial year, the group recorded a 8.64 per cent growth rate in its turnover (This simply means that the rate of sales figure rose significantly better than it did in the previous year).
The turnover grew to N50.2 billion up from N46.5 billion in the preceding year
Profit before tax growth Rate followed which revealed an impressive performance, the growth rate cannot be compared with turnover because of large increase in terms of percentage
Profit before tax obligations for 2021stood at a N3.33 billion up from a profit of N2.22 billion in the corresponding year, and translating into a 49.9 per cent appreciation.
Total assets deployed by the group for 2021 year appreciated to N538.9 billion, 9.5 per cent more than the N492 billion assets deployed in 2020. The increase in equity is as compared to a growth rate in the corresponding year
Profitability Ratio
In a standalone analysis, Unity Bank recorded profitability for the 2021 Financial year. However, when compared to its preceding years’ result, almost all the parameters revealed upward performance.
Firstly, to achieve a profit margin of the bank, increasing to 6.6 per cent in 2021 from 4.4 per cent in 2020.This simply means for every N100 earned by the bank in the course of the year, N6.60 of it translated to profit higher than N4.80 in the corresponding year.
Also, The return on assets (ROA) recorded by group moved higher to a 0.6 per cent in 2021 from 0.4 per cent in 2020. According to the analysis, every N100 worth of assets employed by the bank in the course of 2021 could only contribute N0.60 to the preOtax profit more than that of N0.40 in 2020.
For the 2021 financial year, Unity Bank equity valued at N276.2 billion and for every N100 deployed, the Bank made profit after tax of N0.11 in the previous year, better than and as compared to an after tax profit of N0.8 in the preceding year.
