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Unity Bank has reported that its 2016 after-tax profit fell by 53 percent as its loan loss provisions rose significantly amidst Nigeria’s economic challenges. The bank said after-tax profit fell to N2.18 billion compared to N4.69 billion in the previous year. The decline in profit was caused by a 32 percent increase in impairment charges to N35.95 billion.

However, gross earnings rose 8 percent to N84.02 billion, compared to N78.19 billion in 2015. The revenue growth was driven mainly by transaction-based income and foreign exchange revaluation gains.

“The key performance indicators point to increasing resilience in the face of challenging economic headwinds that characterised the operating environment in 2016,” said Tomi Somefun, Managing Director/Chief Executive Officer of Unity Bank. “Despite the harsh operating environment, the bank remains stable having driven strategic choices to inspire greater market confidence and leveraging cost optimisation strategies, presence in the Northern markets which served as a bulwark, just as the deepening of our presence in Lagos/Southwest also balanced its outlook in the Southern markets."

Unity Bank said total assets rose 11 percent to N492.68 billion as against N443.32 billion in the previous year. The growth in assets was due to a significant growth in loans and advances to customers. Basic earnings per share rose to 18.68 kobo per share from 12.34 kobo per share in 2015. No dividend has been announced for the 2016 financial year.

“The direction for the bank in the coming years is to diversify the earnings base and target growth in double digit territory by aggressive pursuit of new business opportunities in the retail & Small and Medium Enterprise (SME) businesses, agribusiness, financial inclusion, digital banking, increase portfolio mix and drive more traffic to our channels with strong collaboration from our institutional and financial investors that are poised to add a new phase of business revolution to our growth model,” Somefun said.

Unity Bank’s stock was flat at 64 kobo per share at the Nigerian Stock Exchange on Thursday.