2022 Financial Year: United Capital Plc posts N9.65bn Profit After Tax

United Capital Plc (NGX: UCAP) has posted a profit after tax of N9.65 billion for the 2022 financial year ended 31st December, 2022.

The Company stated that in spite of economic oscillations in the year in review, it recorded impressive margins, with its Gross Earnings growing by 49% year-on-year to N26.90 billion, Profit Before Tax rising by 13% year-on-year to N13.50 billion, Total assets growing by 33% year-on-year to N601.92 billion while Shareholders’ Funds increased by 8% year-on-year to N32.99 billion.

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The company went on to say that it has proposed to maintain a dividend of N1.50 for every 50 kobo ordinary share as a show of confidence to shareholders.

Commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say:

“We navigated a tough terrain to sustain our earnings growth and deliver decent returns to shareholders while strengthening our organisational resilience to factors militating against business growth especially in emerging economies during the year 2022.

Our operating environment despite the undulating landscape, continues to present windows of opportunities for all our businesses in the locations we operate. This is accentuated by the 49% growth in revenue to N26.90billion which helped offset increased operating expenses resulting from very high inflation and severely impacted macroeconomic environment which we anticipated in Q4-2022.

We remain upbeat about sustaining our performance in 2023 having kicked off the year in a robust financial position with close to N1trillion funds under management comprising trusts, mutual funds, and other professionally managed investments for our clients across diverse segments.

The Group is better positioned to deliver on our growth objectives while remaining competitive and sustainably profitable. We will continue to prioritise activities that create and preserve value for all our stakeholders into the foreseeable future.”

KEY PERFORMANCE HIGHLIGHTS

Income Statement:

Gross Earnings: N26.90 billion in FY 2022, compared to N18.07 billion in FY 2021 (49% growth year-on-year).
Operating Income: N24.39 billion in FY 2022, compared to N16.24 billion in FY 2021 (50% growth year-on-year).
Operating expenses: N13.72 billion in FY 2022, compared to N5.94 billion in FY 2021 (131% growth year-on-year).
Profit Before Tax: N13.50 billion in FY 2022, compared to N11.92 billion in FY 2021 (13% growth year-on-year).
Profit After Tax: N9.65 billion in FY 2022, compared to N11.26 billion in FY 2021 (14% decline year-on-year).
Earnings Per Share: 161 Kobo. (2021: 188kobo). This represents 14% decline year-on-year.

Statement of Financial Position:

Total Assets: N601.92 billion, compared to N453.60 billion as at FY 2021 (33% year-on-year growth).
Total Liabilities: N568.93 billion, compared to N423.05billion as at FY 2021 (34% year-on-year growth).
Shareholders’ Fund: N32.99 billion, compared to N30.55 billion as at FY 2021 (8% year-on-year growth).

Comparing FY 2022 with FY 2021, the following are worthy of note:

Gross Earnings: Total revenue increased by 49% year-on-year driven by growth in fee and commission income (+32% year-on-year), Investment Income (+55% year-on-year) and Net trading income (+107% year-on-year). This comprises of N13.81bn from Investment Income (2021: N8.90bn), N8.12bn from fee and commission income (2021: N6.15bn) and the rest from trading and other income.
Operating Income: Total operating income grew 50% year-on-year to N24.39 billion in FY 2022, from N16.24 billion in FY 2021. Consequently, PBT rose 13% year-on-year to N13.50 billion in FY 2022, from N11.92 billion in FY 2021.
Total Assets: The company’s total assets grew by 33% year-on-year majorly driven by 179% growth in cash and cash equivalents during the year under review.
Total Liabilities: United Capital’s total liabilities increased by 34% year-on-year largely driven by 26% year-on-year growth in manage funds during the year under review.
Shareholders’ Fund: United Capital’s Shareholders’ funds grew by 8% year-on-year driven by 2% growth in retained earnings.
Proposed Dividend: The Board of Directors proposed a dividend of N1.50 per share, amounting to a total of N9billion dividend to be paid to shareholders upon approval by members at the next Annual General Meeting. The dividend is payable to shareholders whose names appear on the Register of Members at the close of business on March 27, 2023.

About the Company

United Capital Plc (previously called UBA Capital Plc) was incorporated and domiciled in Nigeria, as a Public liability company, on 3 August, 2012, to act as the ultimate holding company for the United Capital Group.

The Company was listed on the Nigerian Stock exchange on 17 January, 2013. The Company changed its name to United Capital Plc following the approval of the resolution by shareholders on the 16th December, 2014.

The principal activities of the Group are mainly the provision of investment banking services, portfolio management services, securities trading and trusteeship.