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  • Business - Banking & Finance
  • Updated: November 23, 2020

Unity Bank's Investors' Confidence Unstable Amid Q3 Earnings

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Olalekan Fakoyejo
Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....

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Unity Bank's investors' confidence is fluctuating in the stock market, as the lender's share price continues to rise and fall. During trading last week, Unity Bank closed the stock market lower than the share price it opened the capital market with. Investors dumped their shares same day Unity Bank released its earnings report.

Unity Bank had opened the market with NGN0.86 kobo per share on Monday, November 16, 2020, but closed the market with NGN0.79 kobo per share on November 20, as investors' confidence dropped with the release of Unity Bank's financial performance.

READ ALSO: Sterling Bank Releases Q3 Report, Earnings Decline

Within the week, while the share price remained flat on Tuesday, November 17, the share price declined further the next day, hitting NGN0.80 kobo, before rising to NGN0.85 kobo on Thursday, November 19. However, on November 20, 2020, investors run to the stock market to sell off Unity Bank's shares, causing the share price to drop to NGN0.79 kobo, Unity Bank's lowest for the week.

Unity Bank Earnings Report

Unity Bank released its financial statements, disclosing that the lender's earnings grew by 3% to hit NGN11,04 billion in the third quarter of this year, surpassing the NGN10,7 billion the company generated in the corresponding period of last year Q3.

Interest Income, however, dropped slightly, as it declined to NGN8.86 billion in Q3 2020, failing to surpass the NGN8.88 billion Unity Bank recorded during the same period of 2019 third quarter. Meanwhile, the Interest Expense of Unity Bank grew to NGN5,2 billion in Q3 this year, moving pass the NGN5.1 billion the bank posted in Q3 2019.

Unity Bank financial statements showed that Net Interest Income declined by -3%, moving from the NGN3.7 billion it recorded in Q3 2019, to NGN3.6 billion during the three months of 2020 third quarter, which falls between July to September.

READ ALSO: Access Bank Earnings Decline Amidst EndSARS Controversy, Boycott

Total Operating Income rose to NGN5.7 billion during the third quarter of this year, rising above the NGN5.5 billion Unity Bank recorded in the corresponding period of this year's third quarter; this reflects a 4% increase when both quarters are compared.

AllNews gathered that Unity Bank's Profit Before Tax also rose by 6% in Q3 of this year, to hit NGN590.3 billion, surpassing the NGN559.3 billion the lender recorded as PBT during the same period of 2019 third quarter.

Unity Bank also reported that its Profit After Tax rose during Q3 2020, as the bank recorded NGN543.1 billion, surpassing the NGN514.6 billion Unity Bank posted as profit after tax in the corresponding period of 2019 Q3.

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Olalekan Fakoyejo
Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....

More From this Author

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