By Aduragbemi Omiyale
In the fourth quarter of 2024, one of the leading retail lenders in Nigeria, Unity Bank Plc, expects to record a profit after tax (PAT) of N4 billion and a pre-tax profit of N4.2 billion.
The financial institution gave this projection and others in its earnings forecast released to the Nigerian Exchange (NGX) Limited, where it trades its securities.
The mid-level bank also projected to post gross earnings of N27 billion between October and December 2024, according to the notice sighted by Business Post.
Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.
This is because the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024.
An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0 per cent to N7.2 billion within the quarter compared with N6.5 billion in Q3, 2024.
Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3 per cent projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.
The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.
It noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.