Nigeria’s Unity Bank Forecasts Q4 Loss After Tax of N1.8 Billion

Unity Bank Plc is not quite optimistic for the rest of 2020. The company issued a forecast earlier today, projecting a loss after tax of N1.8 billion for the fourth quarter of the year.

According to the earnings forecast, a copy of which was obtained by Business Elites Africa, Unity Bank projected Gross Earnings of N4.9 billion, Net Operating Income of N324.6 million, Operating Expenses of N1.9 billion, and Pre Tax   Loss of N1.7 billion.

It should be noted that the forecast did not offer any explanation for the projected loss. However, possibilities abound that the COVID-19 pandemic has dealt a devastating blow on the bank, even though it had reported a profit after tax of N1.03 billion in H1 2020; a 7% increase compared to N967.5 reported in H1 2019.

Last year, the Unity Bank had surprisingly reported a profit growth after many years of financial woes. Profit after tax stood at an impressive N3.4 billion, compared to N7.7 billion loss recorded in 2018. Analysts thought this was finally the turnaround the company’s investors have long been waiting for. Unfortunately, 2020 has had its challenges.

Unity Bank Plc was incorporated in 1987 and later listed on the Nigerian Stock Exchange where its stock price has remained unchanged at N0.57 for a while. The bank is headquartered in Lagos, with Oluwatomi Ayodele Tomefun serving as its Chief Executive Officer.