Overnight Recuitment: Has Unity Bank Received Fresh Capital?

First national bank

If the information making the news that Unity Bank has just recruited 200 new employees less than 48 hours after it fired about 215 employees, then the narrative that the bank must have raised fresh capital might be reliable.

The rationale issued by the bank for the ‘flush’ was that it is re-positioning its system for better efficiency. However, the most probable reason behind the quick recruitment of fresh staff is pointing to the fact Unity Bank might be on the verge of raising equity investment.

Last month, it was rumoured that the bank received about NGN100 billion from an unnamed investor. The bank has not deny nor confirm the information. Unity Bank is one of the banks with low capital adequacy ratio.

Sterling Bank, Heritage Bank and Skye Bank have had to raise funds through alternative means. The bank has not announced how its plans on capital raising, however, because it is quoted on the Nigerian Stock Exchange, NSE, the bank should be making public its plans on its way forward.

In its H1 2016 result, the bank posted a net profit of NGN2,3 billion as against NGN7,8 billion net loss for the period last year.

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