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Unity Bank explains the initiative behind the Resolution of its Legacy NPLs

Proshare

Thursday, July 11, 2017 7:00AM / Unity Bank Plc

In its bid to clean up its loan book,
Unity Bank Plc has taken far-reaching measures and initiatives for the resolution of its Non-Performing Loans (NPL) being long outstanding from legacy. 


The initiative has seen the Bank execute a Sales and Purchase Agreement (SPA) for its NPLs in a deal consummated recently with an independent private-led Assets Management Company.


The sale that culminated in the resolution of the NPLs was orchestrated in strategic landmark purchase consideration and framework that has brought a new lease of life to Unity Bank and provided significant returns to shareholders.
 


On the backdrop of this sustainable development, the Bank's share price has been appreciating in the stock market resulting in capital gains for shareholders and investors.

Analysts see the NPLs resolution initiative and series of recoveries being made by the Management of the Bank as two-pronged approach to boost the Bank's financial performance and creation of wealth for all existing and prospective shareholders.
 

To sustain its long-term value creation for its stakeholders, the Bank is also reengineering its enterprise risk management process to galvanize the growth vision as it taps into opportunities in the market and mitigate shocks to realize its short/long-term corporate goals. Consequently, the Bank embarked on strong actions to de-risk its balance sheet through a process of cleaning the legacy non-performing loans.

Part of the exercise has equally translated to the sale and purchase of legacy NPLs thus paving way for the creation of new quality assets and launching of new products in identified market segments to attract capital receipts, fee income from increased level of transactions and interest income to sustain the growth trajectory.

Related News 

1.       Unity Bank Gross NPLs of N361bn Considered for Outright Sale

2.      UNITYBNK Declares N657.74 million PAT in Q1'17 Result, (SP: N0.58k) – May 02, 2017

3.      Unity Bank Plc Announces Filing of its 2016 Audited Financial Statement – April 06, 2017

4.      UNITYBNK Declares N2.18 billion PAT in 2016 Audited Result, (SP:N0.64k) – April 05, 2017

5.      Unity Bank Plc Appoints Mr Mohammed Shehu as the New Company Secretary – March 22, 2017

6.      UNITYBNK Declares N3.42 billion PAT in Q3'16 Result, (SP: N0.62k) – October 24, 2016

7.      UNITYBNK Declares N2.35 billion PAT in Q2'16 Result, (SP: N1.02k) – August 01, 2016

8.     UNITYBNK Declares N4.69 billion PAT in 2015 Audited Result, (SP: N0.75k) – May 12, 2016

9.      Unity Bank Plc Relocates Corporate Head Office from Abuja to Lagos – January 18, 2016

 

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