In line with its commitment to supporting youth empowerment and technological innovation, and creating opportunities for Nigerian youths to thrive in the digital economy, Unity Bank Plc recently held a high-impact webinar to explore the role of digital technology in sustainable development.

The event drew participants from across Nigeria featuring the Telecommunications, Media and Technology, (TMT) ecosystem including start-ups, players in fintech, content creators, etc.

The event featured two Nigerian technology industry leaders including Mr. Gbolahan Salami, Senior Vice President, Growth, Product, and Strategy at WakaNow, and Mr. Micheal Ogundare, who is the CEO and Co-founder of Crop2Cash. Both speakers shared insightful perspectives on leveraging digital technology to empower the next generation and foster inclusive growth.

Commenting on the International Youth Week webinar, Unity Bank’s Head of Strategy and Innovation, Mr. Ibukun Coker, said that through youth-friendly products, special business grants from the Bank’s youth-focused initiatives such as the Corpreneurship Challenge programme as well as other financing packages, the Bank will continue to accord priority to Micro, Small and Medium-sized businesses in technology.

He added: “Empowering the youth through digital technology is key to unlocking sustainable development in Nigeria. At Unity Bank, we are committed to driving initiatives that bridge the digital divide and equip young people with the skills needed to thrive in today’s fast-evolving economy. This webinar is part of our ongoing effort to support the growth of a digitally inclusive society, ensuring that our youth are well-positioned to harness technology for positive change and economic progress.”

The event provided an opportunity for participants to interact directly with the speakers, with many expressing renewed optimism about their potential to leverage digital technology for personal and societal advancement.

Recall that recently Unity Bank partnered with SkillPaddy in its “Count Her In” tech Programme focused on empowering no fewer than 1,000 female beneficiaries in Software Engineering Training. The IT skill development and empowerment initiative was intended to bridge talent supply gaps while providing individuals with the opportunity to meet their training goals and launch careers in the tech industry. About 40 young girls received full sponsorship from the Bank in the special training initiative, which was conceived as part of activities to commemorate this year’s International Women’s Day 2024.

Despite the challenging environment following the Central Bank of Nigeria’s intervention in January 2024, which led to heightened customer concerns, Union Bank of Nigeria has reported a profit before tax of N79.8 billion on gross earnings of N333 billion during the half year ended June 30, 2024 compared with a profit before tax of N66.5 billion on gross earnings of N210.5 billion during the corresponding period of 2023, representing a growth of 20 percent in profit before tax and 58 percent in gross earnings.

The Bank said in a statement that, “this accomplishment demonstrates the bank’s resilience and commitment to delivering results in uncertain times.”

Commenting on the results, Yetunde B. Oni, Managing Director and Chief Executive Officer of the Bank said: “I am pleased that Union Bank of Nigeria has delivered a progressive financial performance in the first half of the year, with a significant boost in Net Interest Income, Net Operating Income, and Net Trading Income.

“At the beginning of the year, our top priority was to keep the momentum going with a strong focus on stability following the intervention of the Central Bank of Nigeria. We also continued with the planned strategic priorities, which are centred around scaling our digital play, driving hypergrowth in target sectors, optimising our wholesale bank structure, aggressively ensuring recoveries of past-due obligations, and orchestrating a robust ecosystem play through existing and new partnerships.

“So far, we are seeing the direct impact of our strategy on our financial performance. We achieved a substantial increase in Gross Earnings by 58% to ₦333bn compared to ₦210.5bn in H1 2023. Net Operating Income after Impairments increased by 32% to ₦143.6bn from ₦108.5bn in H1 2023, attributed to enhanced interest income, fees, commissions, and margin expansion. Similarly, we achieved Profit Before Tax (PBT) of ₦79.8bn, representing 20% growth compared to ₦66.5bn in H1 2023.

“In pursuit of our strategic priority to scale our digital play, Union Bank successfully launched its digital lending platform, UnionKash. This platform enables existing and new-to-bank customers to access soft loans easily. Since its launch in the first quarter of the year, over 14,000 customers have successfully accessed soft loans through the USSD code *826*41#.

“These achievements reflect the remarkable resilience and dedication of our staff, who have been instrumental in navigating the challenges of a demanding operating environment. Despite the pressures of inflation, exchange rate volatility, and increased operational costs, our team has remained steadfast and committed to delivering excellence. I extend my sincere appreciation to all our employees for their hard work and unwavering dedication, which have been critical to our success in the first half of 2024.

“I also want to express our deep gratitude to our customers, whose loyalty to the Union Bank brand has been unwavering. Their trust and continued patronage have been vital to our success, and we remain committed to serving them with excellence. Additionally, we acknowledge the invaluable support from our regulators as we navigated the complexities of our operating environment.

“In line with the realities of our environment, the bank has initiated the process of recapitalisation. The Banking Sector Recapitalisation Program, introduced by the Central Bank of Nigeria (CBN), mandates banks to increase their minimum paid-in common equity capital to a specified amount by April 2026, per their license category and authorisation. This strategic initiative is not only aimed at aligning our capital adequacy with regulatory standards but also at surpassing them, thereby fortifying our financial stability and positioning us to capitalise on emerging market opportunities.

“As we move forward, our focus remains on building a controlled, compliant, and profitable organisation. We are committed to maintaining strong governance frameworks, ensuring regulatory compliance, and driving sustainable profitability. These pillars will not only fortify our financial stability but also position us to capitalise on emerging opportunities in the market. I am confident that with our continued focus on these priorities, we will sustain our positive momentum and deliver long-term value to our stakeholders.”

Speaking on the H1 2024 numbers, Acting Chief Financial Officer Oluwagbenga Adeoye said:

“Our H1 2024 financial performance is a testament to the Bank’s resilience because it came on the backdrop of a slow start, occasioned by the high inflationary environment, exchange rate volatility, increased power costs and other factors.

“Nevertheless, we were not entirely insulated from these shocks as Non-Interest Income reduced marginally in H1 2024 by 3% to ₦108.3bn from ₦112.1bn in H1 2023 due to foreign exchange revaluation loss. Operating Expenses increased by 52% to ₦63.8bn against ₦42bn in H1 2023, majorly due to the high inflationary environment, increased power cost and increased non-discretionary regulatory cost. Notwithstanding, our Cost to Income Ratio remains below 50% at 44% compared to 39% recorded in H1 2023 on the back of implementing planned cost-efficiency initiatives.

“The Bank continued to grow its loan book cautiously, with gross loans increasing by 24 percent to ₦1.93 trillion compared to ₦1.55 trillion in December 2023, customer deposits grew marginally by one percent to ₦2.36 trillion from ₦2.34 trillion in December 2023, reflecting the impact of socio-economic pressures on our operating environment.

“In the second half of the year, we will focus on improving efficiency and driving our non-interest income. We are confident that we will finish the year strong and sustain the returns on equity and returns on assets, which stood at 40.6% and 3.68%, respectively.”

Further analysis of the Bank’s performance during the reviewed period showed that its net operating income after impairments rose to N143.6 billion from N108.5 billion in 2023, representing a growth of 32 percent, non-interest income reduced marginally by three percent to ₦108.3 billion from N112.1 billion during the corresponding period of 2023 due to foreign exchange revaluation loss.

Operating expenses moved up remarkably by 52 percent to ₦63.8 billion from N42 billion in the corresponding period of 2023, resulting from the inflationary environment, increase in power costs and increase in non-discretionary

regulatory costs.

In the same vein, gross loans increased by 24 percent to ₦1.93trn from N1.55trn in December 2023 while customer deposits went up marginally by one percent to ₦2.36 trillion from N2.34 trillion in Dec 2023, reflecting the impact of the challenges posed by the socio-economic environment on its operations.

About Union Bank Plc:

Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is a household name and one of Nigeria’s long-standing and most respected financial institutions.

The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria.

The Bank currently offers a variety of banking services to both individual and corporate clients, including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance.

The Bank also offers customers convenient electronic banking channels and products, including Online Banking, Mobile

Banking, Debit Cards, ATMs, and POS Systems.

The Chairman of the Committee, Hon. Eze Nwachukwu Eze, other members of the Committee and the Management and Senior staff of AMCON in a group photograph at the end of the retreat in Enugu at the weekend.

The Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Honourable Eze Nwachukwu Eze, at the weekend in Enugu renewed the campaign for all agencies of the Federal Government to join the debt recovery drive of the Asset Management Corporation of Nigeria (AMCON).

Eze said the recovery of such humongous amount of nearly N5 trillion owed AMCON by a few obligors will increase the revenue of President Bola Ahmed Tinubu’s government, and enable the government to deliver the renewed hope Mr President promised Nigerians.

Honourable Eze who led his committee to a retreat in Enugu, the capital of Enugu State attended by the leadership and management of AMCON said the debt recovery agency of the government presently led by Mr. Gbenga Alade must be more brutish in the recovery strategy, which should not allow a few obligors get away with the commonwealth of all Nigerians.

Hon Eze, according to a statement by Mr. Jude Nwauzor, the Head of Corporate Communications Department of AMCON charged AMCON not to be deterred by the personality or position of any obligor when enforcing on their asset.

The lawmaker added, “The new AMCON management have to face the reality of debt recovery, which is not easy, and must not consider social status of obligors in carrying out enforcement actions. In fact, even if you find my name on the list of AMCON obligors, please come after me. The success of AMCON’s mandate is not the responsibility of one institution alone; it requires the concerted efforts of all stakeholders. This includes the government, financial institutions, the regulatory bodies, security agencies, and indeed the private sector.

“We recognise that the economic landscape is evolving rapidly. Global and domestic challenges require us to reassess our strategies and adapt to new realities. Retreats such as this presents us with another opportunity to reflect on AMCON’s journey so far, to identify areas where we can enhance its capacity, and to align our efforts towards ensuring that the Corporation continues to be a key player in our nation’s economic stability.”

According to the lawmaker, the theme of the retreat, “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” is not only timely, but also critically important. The task of managing distressed assets is complex, requiring robust policies, innovative approaches, and unwavering legislative backing. Revitalising, in this context, Eze said, “Means more than just improving existing processes; it involves a rethinking of the entire framework within which AMCON operates. It calls for strategic adjustments that will enable AMCON to be more proactive, agile, and effective in its interventions.

“In this regard, the Committee on Banking and Other Ancillary Institutions is committed to working closely with AMCON and other stakeholders to ensure that our policy framework supports the Corporation’s objectives. We must also consider the broader economic implications of these policies, ensuring that they contribute to sustainable growth and development. As lawmakers, it is our responsibility to provide the legal infrastructure that enables AMCON to fulfill its mandate effectively. This includes reviewing existing laws, proposing new legislative measures, and ensuring that AMCON has the necessary tools to navigate the complexities of asset management.”

Earlier, the Executive Director of Operations Mr Lucky Adaghe who represented the AMCON MD/CEO at the retreat urged the committee to continue to support the Corporation because as the economy tightens up, the assignment of debt recovery has also become even more difficult.

Adaghe said, “The Nigerian economic landscape presents a complex web of challenges for debt recovery, as the country grapples with high inflation, and currency fluctuations. The current economic reforms such as the removal of fuel subsidy, foreign currency exchange unification etc. aimed at diversifying the economy and promoting growth are expected to positively impact debt recovery.

“Initiatives such as the National Development Plan 2021 – 2025, the Economic Recovery and Growth Pan (ERGP), and the Central Bank of Nigeria’s measures to strengthen the banking sector and enhance credit facilities, should improve business operations and increase revenue generation. Reforms will lead to increased employment opportunities, improved infrastructure and a more stable macroeconomic environment, ultimately enhancing debtors’ ability to repay their obligations.

“Even though the AMCON Act has gone through three amendments over the years, the obligors have mastered the operations of AMCON and have been taking advantage of the Court processes to frustrate AMCON. Despite the efforts made by this esteemed Committee in the amendment of the Act to aid our recoveries, some of the amendments are yet to be fully implemented due to some bureaucracy in government.”

Aside from that, Adaghe said, “AMCON obligors hide under legal technicalities to tie AMCON in Courts, exploring the loopholes in the statutes and the legal system. It is important to mention at this stage that the seed sowed by the past committees has yielded the much-needed fruit now awaiting a sickle to harvest the fruits and this will come by way of the support of this Committee to among others – designating specific AMCON Judges in the Federal High Court complexes across the country; accelerated hearing and granting of judgement on AMCON matters within 90 days; MCON courts to sit at least three days in a week, and the provision of issuing bench warrants for recalcitrant and evasive obligors.”

Finally, he said, “To enable AMCON succeed in its National call to duty, AMCON solicits the support of this esteemed Honorable Committee Members in the following areas: Engagement with the Judiciary through the relevant standing committees of the National Assembly on Judiciary towards full activation of the special provisions of the AMCON act as amended; Engagement with other shareholders within the Judiciary for the implementation of the practice direction and Amendment of the Act may be required towards extending Banks contributions to the Resolution Cost Fund to ensure that AMCON outstanding liabilities are extinguished, to avert their crystallisation to the Federal Government.”

Other people who made presentations from AMCON at the retreat include Mr. Joshua Ikioda, the Group Head of Enforcement, Mr Najib Sulaiman, the Head of Strategy and Mr Norbert Enenmoh of the Legal Department. The retreat ran from Friday 16 to Sunday August 18, 2024.