Abuja — Unity Bank Plc has assured shareholders of impressive performance and returns including cash dividends by the end of the running financial year, which will mark the first report of the bank following the recapitalization exercise it plans to open soon.

Unity Bank plans to raise fresh N60 billion from the capital market to beef up its capital. The bank was adjudged by the CBN/NDIC examiners as in a liquid position.

A statement from the bank said the Managing Director Mallam Falalu Bello, said Unity Bank has commenced recovery efforts and is strengthening operations including all its systems and processes to ensure no stone is left unturned in leapfrogging the profitability of the bank.

"For the financial year ended September 30, 2009, Unity Bank raised gross earnings by about N2 billion to N35.9 billion from N33.8 billion in the previous year. Analysts have expressed the opinion that the growth in earnings of the bank reflects expansion in its market share, which they said is commendable considering the cut- throat competition in the industry and also the fact that the feat was achieved in a year the banking sector was hit by tough economic situation" it said.

The bank made a post tax profit of N2.7 billion for the year ended September 30, 2008. However, by the impact of the global and local financial turmoil, it's bottom-line for the period ended September 30, 2009 recorded a loss of N8.7 billion. To be in that position, Unity Bank had provided for risk assets to the tune of N7.7 billion in the review year, a development industry analysts said was not bad, stressing it would impact positively on the bank's financials in the next accounting year.

"When a bank makes a provision on a particular year, it does not mean that the money is lost. The regulators enforce loan loss provisions to balance reality and uncertainty such that the books of account do not begin to create false impression about the organisation.

When recoveries are made in future, the money buoys the books again and the assets so recovered can make further money for the bank. To me, provisioning is not bad as painted in some quarters," said Casmir Ogbu, an economist and financial analyst.

According to Unity Bank's Group Company Secretary, Aisha Abraham, "The loss made by Unity Bank is attributed to the provision made in line with the joint CBN/NDIC examination and stress test. Recovery efforts are being made to significantly improve the bank's profit by the end of the financial year."