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Unity Bank Gross NPLs of N361bn Considered for Outright Sale

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Tuesday, July 18, 2017 2:25PM / Unity Bank 2016 Annual Financial Statements

Included in loans and advances are gross non-performing loans of N361 billion which have been considered for outright sale & management to an institutional asset management company.


The Bank executed a Transaction Implementation Agreement (TIA) and a Sales and Purchase Agreement (SPA) with the company in December 2016. The initial consideration has also been agreed and the Bank has received a good faith payment which is a percentage of the initial consideration, prior to the conclusion of the audit in February 2017.


However, the transfer of loan rights to the purchaser is expected to be completed by April 2017 after all contractual obligations in the signed agreements has been fulfilled by both parties.


The carrying amount of the non-performing loans would be reclassified to held-for-sale financial assets in the event that the criteria for reclassification are satisfied.

 

 

31 December

31 December

 

2016

            2015

 

N’000

N’000

Loans and advances

 

 

Loans and advances to customers by customer type:

 

 

Government lending

11,463,555

10,537,355

Corporate lending

172,870,601

163,285,976

Consumer lending

190,740,346

132,618,407

Interest receivable  

3,684,098

5,455,809

Gross Loans

378,758,599 

311,897,547

Less: Allowance for impairment losses   

(101,544,079)

(65,754,418)

 

277,214,521

246,143,129

Current

235,815,191

201,855,718

Non-Current

41,399,330

44,287,411

 

277,214,521

246,143,129

 
Analysis on the bank’s figures as at December 31, 2016 reveals that the gross NPL of N361bn constitutes about 95% of the bank’s gross loan and 73% of its total assets while the bank’s shareholders’ fund of N83bn as at the period under review constitute 23% of the gross NPLs. 

Gross Loans

378,758,599

 
     

NPLs

361,000,000.00

95%

     

Total Assets

492,681,647.00

73%

     

Total Equity

83,106,980.00

23%

Figures are in N’000 

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