LAGOS – Unity Bank Plc on Saturday projected a Non-Performing Loan (NPL) target ratio of five per cent in 2015 and becoming retail bank of choice by 2020.
The Managing Director of the bank, Mr Henry Semenitari, made the announcement on Saturday in Lagos.
Semenitari said that the bank would achieve the NPL target through aggressive loan recovery strategy.
He said that with a current NPL ratio of 20.4 per cent, Unity Bank planned to embark on tier-2 capital raising exercise in 2015 to boost liquidity and ensure enhanced growth.
The managing director said that the bank would achieve the target through enhanced aggressive recovery, right corporate governance structure, expertise and modernised information technology structure.
Semenitari said that the bank would sustain revenue drive and focus on the business objective to ensure enhanced return to all stakeholders.
He, however, assured shareholders that the bank would increase its profitability for better returns in the next financial year.
“The impact of our recovery would be felt next year. There must be a drop in NPL. We must achieve this, it is a whole battle.”
He said that the bank had established clear relationship with customers and embarked on thorough account re-activation to increase clientele base.
The Unity Bank boss said that the bank would emerge as best retail bank of choice in 2020 with strong networks, enhanced customer base, strong product offerings and efficient work force.
Semenitari said that the bank would target Small and Medium Enterprises (SMEs) businesses and increase exposure in the agriculture sector with more agricultural products.
He stated that the bank would offer SMEs an opportunity to grow their businesses and generate employment.
Semenitari said that the bank would also focus on the rural economy to propagate rural economy in line with the Federal Government’s financial inclusion strategy.
“You cannot grow Gross Domestic Product without rural populace to boost rural economy banking,” Semenitari said.
He said that the capital raising exercise of about N40 billion, comprising rights issue and special placement, embarked upon by the bank in 2013 was over-subscribed.
Semenitari said that the proceeds of the offer would be used for branch expansion, upgrading of information technology and human capital development.
The News Agency of Nigeria (NAN) reports that the bank posted gross earnings of N48.14 billion for the third quarter ended Sept. 30, 2014, compared with N45.30 billion achieved in the preceding period of 2013.
Its profit before tax rose to N12 billion against N1.20 billion posted in 2013, while profit after tax stood at N11.02 billion, compared to N1.15 billion in 2013.
Also, the bank’s interest income during the period under review stood at N25.69 billion from N20.8 billion in 2013. (NAN)