Unity Bank plc is to raise fresh N10 billion capital through share allotment following an endorsement by the bank’s shareholders on Wednesday.
The bank’s board of directors had proposed the additional capital to enable them to expand the bank’s business and remain competitive. The fresh funds will bring the bank’s share capital to N40 billion.
The unanimous endorsement by the shareholders as part of the special resolutions tabled before them on Wednesday at the bank’s seventh annual general meeting in Abuja.
The N10 billion to be raised through share allotment would mean creating an additional N10 billion divided into 20 billion ordinary shares of 50 kobo each ranking in tandem with the existing shares of the company.
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Nu’uman Barau Danbata, chairman, board of directors of Unity Bank presided over the meeting and presented the bank’s operational report in the last one year.
Danbata told the shareholders that in spite of stiffer competition and stringent regulatory environment, Unity Bank posted an impressive performance.
For the year ended December 31, 2012, customer deposit grew by 1.19 percent from N266.88 billion as at the end December 2011 to N270.06 billion in December 2012 while loans and advances grew by 60.37 percent from N117.86 billion to N189.04 billion during same period.
Shareholders’ funds also recorded a leap by 17.43 percent from N43.82 billion in 2011 to N51.46 billion in 2012. The company’s overall assets grew by 6 percent from N372.92 billion in December 2011 to N375.72 billion in December 2012.
On the income side, profit for the year grew by 86.74 percent from N3.46 billion to N6.58 billion while gross earnings grew by 19.17 percent and 76.89 percent from N34.60 billion to N41.24 billion in 2012.
