Unity Bank remains on life support with negative capital adequacy ratio, negative shareholders equity and needing regulatory forbearance to continue operations and meet working capital needs.

The mid-tier Nigerian lender just released full year 2021 and first quarter 2022 financial statements which indicates that as at 31 December 2021, the Bank’s total liabilities exceeded its total assets by N273.9 billion.

The Bank also did not meet the required minimum Capital Adequacy Ratio (CAR) and the minimum capital requirement of N25 billion for a national bank as required by the Central Bank of Nigeria (CBN).

Unity Bank reported a profit after tax of N3.1 billion for the year ended 31 December 2021 and the capital adequacy ratio stood at -86.18%.

The Bank therefore did not meet the minimum capital requirement and the CAR as stipulated by the Central Bank of Nigeria (CBN) for a Bank with a National banking license which is 10%.

Read more: https://moneycentral.com.ng/markets/article/zombie-unity-bank-on-life-support-with-86-18-capital-ratio-as-cbn-loans-n50bn/