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Nigerian Unity Bank to sell its stake of UnityKapital

February 4, 2014

Nigerian Unity Bank plans to sell its 50.3% stake in the insurance company UnityKapital Assurance in order to meet the central bank's requirement that all banks in the country have to divest from non-banking subsidiaries or adopt a holding company structure, AllAfrica reported. The financial advisory firm Capital Assets is the financial advisor to the deal. Last year, Unity Bank's shareholders agreed to divest NGN 5.4bn ( EUR 24.6mn ) worth of assets in non-banking subsidiaries. Unity Bank's net profit climbed 23.5% y/y to NGN 3.7bn in the first half of 2013, bolstered by robust growth of income from lending, according to the latest available data. The bank's pre-tax profit also rose 23.5% y/y to NGN 4.4bn in H1. The bank has said it planned to open 50 new branches by the end of 2014 in the country. Currently, the bank runs 242 branches throughout Nigeria and employs over 5,000 people. Unity Bank also plans to use agents in Nigeria's rural areas where it has no branches.

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Source: IntelliNews - Weekly Reports

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