Culled—Proshare
July 18, 2017/Unity Bank 2016 Annual Financial Statements
Included in loans and advances are gross non-performing loans of N361 billion which have been considered for outright sale & management to an institutional asset management company.
The Bank executed a Transaction Implementation Agreement (TIA) and a Sales and Purchase Agreement (SPA) with the company in December 2016. The initial consideration has also been agreed and the Bank has received a good faith payment which is a percentage of the initial consideration, prior to the conclusion of the audit in February 2017.
However, the transfer of loan rights to the purchaser is expected to be completed by April 2017 after all contractual obligations in the signed agreements has been fulfilled by both parties.
The carrying amount of the non-performing loans would be reclassified to held-for-sale financial assets in the event that the criteria for reclassification are satisfied.
| 31 December | 31 December | |
| 2016 | 2015 | |
| N’000 | N’000 | |
| Loans and advances | ||
| Loans and advances to customers by customer type: | ||
| Government lending | 11,463,555 | 10,537,355 |
| Corporate lending | 172,870,601 | 163,285,976 |
| Consumer lending | 190,740,346 | 132,618,407 |
| Interest receivable | 3,684,098 | 5,455,809 |
| Gross Loans | 378,758,599 | 311,897,547 |
| Less: Allowance for impairment losses | (101,544,079) | (65,754,418) |
| 277,214,521 | 246,143,129 | |
| Current | 235,815,191 | 201,855,718 |
| Non-Current | 41,399,330 | 44,287,411 |
| 277,214,521 | 246,143,129 |
Analysis on the bank’s figures as at December 31, 2016 reveals that the gross NPL of N361bn constitutes about 95% of the bank’s gross loan and 73% of its total assets while the bank’s shareholders’ fund of N83bn as at the period under review constitute 23% of the gross NPLs.
| Gross Loans | 378,758,599 | |
| NPLs | 361,000,000.00 | 95% |
| Total Assets | 492,681,647.00 | 73% |
| Total Equity | 83,106,980.00 | 23% |
Figures are in N’000
