Unity Bank, a publicly listed Nigerian bank, is currently in talks with Providus Bank regarding a potential business combination.
According to sources familiar with the matter speaking to Nairametrics, discussions have been ongoing for weeks, although opinions on the progress vary.
Some suggest the talks are in the advanced stages, hinting at uncertainty.
Sources within Providus Bank even suggest an “acquisition” of Unity Bank, adding a more definitive direction to the negotiations. However, formal approval from the central bank is still pending.
Both banks believe a business combination would be mutually beneficial, considering their distinct business models.
Unity Bank, with its extensive reach and balance sheet, contrasts Providus Bank’s modernity, agility, and financial stability.
Despite ongoing discussions, the central bank’s formal endorsement is awaited.
Unity Bank has faced acquisition speculation before and recently reported a loss before tax of N47.9 billion, with negative equity of N190.2 billion, potentially impacting shareholders in a business combination.
In contrast, Providus Bank reported a strong net asset of N45.2 billion in its 2022 audited financial statements.
Unity Bank’s balance sheet is N423.3 billion, while Providus Bank’s is N735.8 billion, with customer deposits of N504 billion compared to Unity Bank’s N434 billion.
As of now, the Nigerian Exchange Group (NGX) hasn’t received official notification of any business combination, and no press release has been published.
Unity Bank’s publicly listed shares closed at N1.07 per share, showing a 9% increase on Wednesday and a remarkable 122% growth over the past year.
