The Managing Director, Unity Bank of Nigeria Plc, Mr. Ado Wanka, on Thursday said that plans had reached an advance stage for the bank to raise tier 1 capital in order to boost its operations.

Wanka, who stated this at the bank’s sixth Annual General meeting in Abuja, noted that the move would help to enhance the bank’s long term solvency and financial stability.

He, however, failed to give the amount, which the bank was targeting from investors, but added that the bank had successfully improved its tier two capital to N11.4bn.

Tier one is the core capital of a bank and it is made up of its equity and reserves. It is also a term that is used to describe the capital adequacy of a bank.

He said, “In a bid to improve its drive towards achieving its strategic objectives, the bank has successfully raised tier two capital to the tune of N11.4bn.

“We will continue our bid to shore up the bank’s capital base in order to sustain a vibrant and financially strong and stable bank. In this direction, arrangements have reached advanced stage for the raising of tier one capital in order to further enhance the bank’s long term solvency and financial stability.”

The Unity Bank boss said despite the tough operating environment in the banking industry, the bank was able to close the 2011 financial year profitably.

For instance, he said the bank’s total deposit base grew by 20.4 per cent from N221.7bn in 2010 to N266.9bn, while total assets rose from N118.6bn to N122bn within the period under review.

He said as part of its strategic initiative, the bank would, before the end of the year, open non interest banking windows for its customers.

Also speaking at the event, the Chairman of the bank, Mr. Barau Danbatta, said going forward, the bank would build a superior customer service environment that would make it the preferred choice for banking services.

He said the reform in the banking industry by the Central Bank of Nigeria was expected to put the bank on the path of sustainable growth in the 2012 financial period.

At the AGM, the bank proposed to the shareholders a bonus share dividend of one for every 10 held.

This was approved by the shareholders and the amount is expected to be paid by the bank from its share premium account.

Source: Punch/Ifeanyi Onuba