Providus Bank Set to Buy Nigerian Bank with N48 billion Loss Record

• Providus Bank is making plans to buy 35-year-old Unity Bank in Nigeria
• A source said approval in principle has already been received for the deal
• According to its recent financial statement, Union Bank declared a massive loss

Providus Bank Limited, a 7-year-old financial institution is set to buy Unity Bank Plc whose operation commenced in 1988.

Those who are familiar with the financial institutions' operations in the country confirmed this to Legit.ng but noted that the development is yet to be made public.

The proposed acquisition according to THE WILL has already received approval in principle from the Central Bank of Nigeria’s Committee of Governors during Godwin Emefiele’s time in office.

The report stated that the leadership of both banks is engaged in intense talk and will soon make the announcement to the public.

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It noted that the recent changes in the CBN may have slowed down the process of advancing the deal closer to a conclusion.

The financial report indicates bank could be in distress

The financial report by Unity Bank put the bank in a negative position as its profit for the 9-month 2023 declined by 2,461%. This translates into an N48 billion loss compared to the N2 billion profit in the corresponding period of 2022.

Similarly, the bank reported a decline in revenue by 10% for the period from N42 billion to N38 billion. Its net operating income dropped by 204% from positive N22.6 billion to negative N23.5 billion.

Total assets were N423 billion while total liabilities of the bank were N613 billion as of 30th September 2023. This further strengthens the position of deficiency in its balance sheet.

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Its Earnings per share (EPS), which measures the profitability of a company on a per-share basis, recorded a negative 546.56 Kobo

Earlier, Legit.ng reported that Union Bank, one of Nigeria's oldest financial institutions, has announced it is delisting from the Nigerian Exchange (NGX).

The development comes after its core shareholders, Titan Trust Bank Limited, acquired all the shares in the company in May.

"Attend to Their Complaints": CBN Calls Out Banks For Neglecting Customers Amid Refund Claims

The Central Bank of Nigeria (CBN) has asked commercial banks to address customer complaints, Legit.ng reported.

The apex bank called out some commercial banks on social media, specifically X, for neglecting their customers' complaints.

Many of the banks' customers took to social media to ask the CBN to compel them to refund the monies debited from their accounts.

Source: Legit.ng