The Central Bank of Nigeria (CBN) yesterday described as fake news, a media report that it was considering nationalising Unity Bank Plc.
CBNs spokesman, Osita Nwanisobi, in a statement, advised customers and other stakeholders of the bank to disregard the report, describing it as the handiwork of mischief-makers.
He said, The report is fake news; there is no iota of truth in it”, adding that the public should disregard such news.
The report had claimed that the apex banks target examination of Unity Bank showed that the Tier-2 lender is in ‘grave financial condition’, with Capital Adequacy Ratio and Non- Performing Loans Ratio that breach prudential standards.
According to the communique: the Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR) both remained above their prudential limits at 15.8 and 38.9%, respectively. The Non-Performing Loans at 5.89% in April 2021, showed progressive improvement compared with 6.6% in April 2020.
Unity Banks audited full year 2020 results showed improved performance in key parameters. For instance, the Banks Profit after Tax stood at N2.09 billion, while Profit before Tax was N2.22 billion during the year under review. Its Net Operating Income rose to N25.46 billion, from N23.21 bn in the corresponding period of 2019, representing a 9.71% increase.
Also, the bank’s posted gross earnings of N42.71bn, compared with N44.59bn recorded in the comparative period of 2019. Its Customer Deposit portfolio grew by 34.4% to N356.62 bn in 2020, up from N257.69 bn posted in the corresponding period of 2019.
Analysts have pointed out that just last month, the CBNs Monetary Policy Committee, (MPC), noted in the communiqu it issued at the end of its meeting that the banking industry is in good health.
