The board of directors of Unity Bank is repositioning the bank as a major institution to underpin Nigeria’s growth, even as its managing director resigned, weekend.
This is after a successful recapitalisation and re-branding exercise that evolved the bank into a profitable and customer-focused financial services company.
Sources tell BusinessDay that Henry James Semenitari, the bank’s managing director, who resigned on Friday, would be replaced by “someone from within, who meets all the Central Bank of Nigeria (CBN) requirements.
“The board made a pre-emptive move based on the future direction of the company after a successful stint as MD by Semenitari with strong support of the board and executive management.”
With an average professional banking experience of 24 years each, led by Thomas Etuh (chairman) and Aminu Babangida (vice-chairman), the Unity Bank board has a combined 120 years of experience with highly talented leadership, to drive growth and continued improvement in services to customers while upholding the principle of responsible banking practices.
Furthermore, none of the banking regulatory institutions in the country – CBN, NDIC or SEC – has raised any concern over happenings in the bank.
The NDIC 2014 annual report, recently released, gave a clean bill of health to the bank in particular, and Nigerian banks in general.
Unity Bank concluded a rights issue and private placement of N39.224 billion in 2014, which was largely oversubscribed.
The lender on Friday reported net income rose 11 percent to N8.23 billion in the half year 2015 period, despite the tight money and tough macro environment.
Lenders are struggling with a 40 percent slump in oil prices in the past year and the depreciation of the currency by the CBN.
The CBN also decided to set a unified cash reserve ratio for public- and private-sector funds at 31 percent, to improve the transmission of monetary policy.
Unity Bank’s fee and commission income increased by 23 percent to N4.66 billion, to offset the dip in interest income in 2015 from the earlier period.
Total assets increased by 4 percent to N429.6 billion, while cash and cash equivalents stood at N23.46 billion as of June 30, 2015.
The bank came into existence from one of the largest mergers in Nigeria’s banking history, and has developed competences in investment, corporate and retail banking, since commencing operations in January 2006, following the merger of nine financial institutions.
It is now one of the leading retail banks in Nigeria, with 256 business offices and cash centres spread across the 36 states of the federation.
Sources also say the the bank board has employed the services of audit and consulting firm, PriceWaterhouse Coopers (PwC) to improve processes and strategies in its SME, agriculture and rural development sectors.
