Unity Bank Plc., a commercial financial institution with 215 branches in Nigeria, has finalized arrangements to establish seven microfinance institutions (MFIs) in Kano and Jigawa, two states in the North West geopolitical zone of the country. The bank also plans to establish two MFIs each in the North East, North Central and South South zones of the country. These regions represent 19 of the 36 states which comprise Nigeria. The bank will use its subsidiaries BON Trustees Ltd. and First Venture Ltd. to launch the proposed MFIs.
“The establishment of these microfinance banks [will] be done in the next two years, and we are also interested in promoting many of them in other parts of the country,” said Managing Director and CEO of the bank, Falalu Bello. He announced the plan at the annual general meeting of the bank on October 25.
This was the first general meeting of the bank since its consolidation from nine legacy banks: Intercity Bank Plc., Bank of the North Ltd., Tropical Commercial Bank Plc., First Interstate Bank Plc., Pacific Bank Ltd., CentrePoint Bank Plc., Societe Bancaire Nigeria Ltd., NNB International Bank Plc. and New Africa Bank Plc.
On consolidation Unity Bank had total assets of NGN 110 billion (USD 927.1 million), total deposits of NGN 55 billion (USD 463.5 million), gross loans of NGN 40 billion (USD 337.1 million) and shareholders funds of NGN 29.4 billion (USD 247.8 million). Since that time, the bank has noticed a significant improvement in its financials. It operates at industry standard with assets increasing by 195 percent as of March 2007.
Chairman of the board of Unity Bank, Akin Mabogunje, announced at the general meeting that the bank has recorded a profit after tax of NGN 1.37 billion (USD 11.5 million) in the last financial year. This represents about a 235-percent growth when compared with the previous year’s profit of NGN 409.6 million (USD 3.45 million).
The bank’s total assets and contingencies also rose to NGN 139.68 billion (USD 1.18 billion) in the year under review, up from NGN 38.56 billion (USD 325 million) the past year. This represents an increase of 262 percent.
Additional Resources:
Business Day: “Unity Bank to establish seven micro-finance banks in Kano, Jigawa.” By Adeola Ajakaiye. November 4, 2007.
Business Day: “Unity Bank declares N1.37 billion profits.” By Adeola Ajakaiye. October 31, 2007.
Unity Bank Plc.
Unity Bank: Corporate Profile
AllAfrica.com: “Nigeria: Unity Bank to Raise N60b Through IPO.” By Justus Nduwugwe. October 17, 2007.
Bloomberg.com: Currency Calculator
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