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


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.

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