Managing Director, Unity Bank Plc, Mrs Tomi Somefun in a quote attributed to her said the bank is trying to build momentum while reflecting key performance indicators despite economic headwinds and volatilities that characterized the operating environment in the 2022 financial year. Based on this, the directors have a reasonable expectation that the bank will continue in operational existence for the foreseeable future and as such realise its assets and settle its liabilities in the normal course of business,” the notes to its 2022 financial statement read. “The directors are confident that they would be able to recapitalise the bank upon the upturn of economic activities within the next one year. Nonetheless, they said that they have reached an advanced stage with both local and multinational investors in the fund mobilisation for the bank. Directors of the bank admitted in their notes to the financial statements that the bank is nearing a recapitalisation and there is uncertainty regarding the process. What Unity Bank’s 2022 financials sayįor the year 2022, the bank’s interest income grew by 13% to ₦48.9 billion in 2022 from ₦43.1 billion in 2021 but its profit after tax (PAT) fell by 70% to ₦941.3 million in 2022. As stated in Note 35, these events or conditions, along with other matters as set forth in Note 35, indicate that a material uncertainty exists that may cast significant doubt about the bank’s ability to continue as a going concern,” the note in the financials read. As at same date, the bank’s total liabilities exceeded its total assets by ₦274.9billion and the bank did not meet the required minimum Capital Adequacy Ratio (CAR) of 10% and the minimum capital requirement of ₦25.00 billion for a national bank as required by the Central Bank of Nigeria (CBN).

“We draw attention to Note 35 of the financial statements, which indicates that the bank made a profit of ₦941.4million for the year ended 31 December 2022. Analysts from KPMG wrote a note regarding this situation in its books, highlighted it as a “growing concern.” On the part of its total liabilities, the bank recorded ₦785 billion in 2022, as against ₦815 billion recorded in 2021. Per its financial statements, the bank recorded total assets of ₦510 billion in full-year 2022, compared to ₦538 billion in 2021. These questions became pertinent after the lender’s total liabilities exceeded its total assets by ₦274.9 billion for the full-year ended December 31, 2022. On paper, everything seems well at Unity Bank, but a worrying note from independent auditors, KPMG, on the financial health of Unity Bank should bother investors.Ī note from independent auditors, KPMG, has raised questions over the financial health of Nigeria’s Unity Bank.

Unity bank