Shareholders support Unity Bank to raise N40bn

Shareholders of Unity Bank Plc on Wednesday at the bank's 7th Annual General Meeting in Abuja approved the proposal of the bank to raise its share capital from N30bn to N40bn.

The approval, which was unanimously given by the shareholders would enable the bank to issue from its authorised share capital 20 billion units of ordinary shares at 50 kobo each.

The additional shares so issued would have equal rights with the existing shares of the company, to be used for branch expansion, information technology and infrastructure.

Others are employees' training, additional deployment of Automated Teller Machines and Point of Sales' terminals.

Speaking at the event, the Chairman of Unity Bank, Nu'umanDanbatta, said the bank had been repositioned to deliver its strategic objective of growing its assets and deposits in a significant manner.

This, he noted, would be achieved through cost optimisation and implementation of its new retirement policy aimed at rejuvenating its workforce.

'Our ultimate aim is to have a highly trained and committed workforce to drive our business and we will put a lot effort into attracting and retaining the best people,' he said.

On its financial performance for the 2012 year, he said despite the 'stiffer competition and stringent regulatory environment,' the bank posted impressive performance.

For instance, Danbatta noted that customer deposits grew by 1.19 per cent from N266.88bn in 2011 to N270.06bn in 2012.

Loans and advances also rose by 60.37 per cent from N117.86bn to N189.04bn during the same period while shareholders' funds grew by 17.43 per cent from N43.82bn in 2011 to N51.46bn in 2012.

Overall, he said the total assets of the bank increased by six per cent from N372.92bn to N375.72bn while profit rose by 86.74 per cent from N3.46bn to N6.58bn.

The Managing Director, YakubuWanka, said the bank was well positioned to take advantage of the opportunities in the financial markets.

Explaining what the new capital would be used for, he said, 'The new capital will be deployed towards increasing the lending and investment capacity of the bank.

'Branch expansion, information technology, infrastructure, employees' training and additional deployment of Automated Teller Machines and Point of Sales' terminals are some areas where the additional capital will be invested.'