Time ticking for Unity Bank as it projects a N20.7 billion loss

Unity Bank Nigeria Plc is projecting a pre-tax loss of N20.7 billion in the second quarter of 2024 highlighting the financial challenges faced by the bank.

The bank faces a negative shareholder fund of N190.2 billion per its financial statement and has been exploring capital-raising options.

In a press release seen by Nairametrics, Unity Bank is also projected to close with a cash position of N49.6 billion.

Key highlights

• Gross earnings: N24.8 billion
• Net Interest revenue: N6 billion
• Net operating income: N13.2 billion
• Pre-tax loss: N20.7 billion

Unity Bank is facing a dire financial challenge with a negative shareholders fund of around N190 billion.

• In its 9 months earnings, the bank reported a retained loss of N428 billion while it still maintains customer deposits of around N433 billion.
• Nairametrics reported the bank was exploring merger discussions with other banks as the apex bank’s recapitalization plans get closer. 
• The bank is running a race with time as the central bank prepares to announce a capital raise.

Unity Bank’s share price was trading at N2 per share at the time of writing this story.

Recommended reading: Unity Bank records N38.2 billion gross earnings in Q3’23