Unity Bank Plc to Suffer Financial Loss of N20.7 billion

Unity Bank Plc released its financial earnings projections for the second quarter of 2024 on Monday. The company’s pre-tax record was a loss of N20.7 billion.

The bank’s negative performance has continued to erode shareholders’ funds, with a loss of N190.2 billion as reported on its financial statement, despite the risk of a potential merger.

In the press release obtained by West Africa Weekly, Unity Bank projects a closing cash position on its book at N49.6 billion, showing its financial strength and liquidity.

The bank also recorded a projected loss in December last year, a negative performance for 1st quarter (Q1) for this year amidst its fight to stay afloat in the financial markets.

In its second quarter (Q2), Unity Bank projects a capital loss of post-tax N21.58 billion, a pre-tax of N20.7 billion, a net operating loss of N13.23 billion, and an impairment credit loss of N941.85 million.

However, a projected N2090 billion loss in revaluation only indicates the revaluation and impairment credit losses would depreciate the bank’s profit to the negatives while it puts its gross earnings at N24.89 billion.

Essentially, Unity Bank’s projected net cash flow from operating and investing activities is expected to be at a loss of N255.28 billion. In contrast, the loss in net cash flow is to be provided and used in its investing activities at N276.92 billion.

Meanwhile, despite the current Managing Director/Chief Executive Officer, Tomi Somefun, pinning Unity Bank Plc’s financial struggle on the devaluation of the naira, the leading cause remains relative to the former Managing Director, Thomas Etuh, as earlier reported. This sets the precedent for the investigations of financial regulatory bodies, including CBN and Asset Management Corporation of Nigeria, AMCON.

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Mayowa Durosinmi

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Mayowa Durosinmi is a Nigerian investigative reporter for West Africa Weekly with reports focusing on politics, human rights, security and health in West Africa and the Sahel region.

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