United Capital Plc (NGX: UCAP) has announced its Unaudited Financial Results for the period ended June 30, 2022. Gross Earnings was up by 33% year-on-year to N9.11billion, PBT grew 40% year-on-year to N5.24billion, and PAT rose by 41% year-on-year to N4.44billion.
Speaking on the unaudited financial results, The Group Chief Executive Officer, Mr. Peter Ashade stated:
“United Capital is in a stable growth phase amid the challenging operating terrain in 2022. We expect to navigate the undulating business landscape in the remaining half of the year towards increasing value delivery to all stakeholder.”
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Looking ahead and commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say;
“Going into H2, we see vistas of emerging business opportunities within our operating environment and will be collaborating with diverse business leaders and stakeholders across critical economic sectors to deliver new solutions and grow all our businesses in line with our corporate strategy.”
KEY PERFORMANCE HIGHLIGHTS
Income Statement
- Gross Earnings: N9.11billion in HY 2022, compared to N6.85billion in HY 2021 (33%
growth year-on-year) - Net Operating Income: N8.11billion in HY 2022, compared to N6.81billion in HY 2021
(19% growth year-on-year) - Operating expenses: N4.06billion in HY 2022, compared to N3.11billion in HY 2021
(30% growth year-on-year) - Profit Before Tax: N5.24billion in HY 2022, compared to N N3.74billion in HY 2021 (40%
growth year-on-year) - Profit After Tax: N4.44billion in HY 2022, compared to N3.14billion in HY 2021 (41%
growth year-on-year) - Annualized Earnings Per Share: 148 kobo. (HY 2021: 105 kobo)
Statement of Financial Position:
- Total Assets: N531.79billion, compared to N453.60billion as at December 2021 (17%
year-to-date growth) - Total Liabilities: N505.27billion, compared to N423.05billion as at December 2021 (19% year-to-date growth)
- Shareholders Fund: N26.53billion, an 13% year-to-date decrease relative to December 2021’s value at N30.55billion.
Comparing HY 2022 with HY 2021, the following are worthy of note:
- Gross Earnings: United Capital’s gross earnings rose 33% year-on-year to N9.11billion in HY 2022 compared to N6.85billion in HY 2021 largely attributable to growth in Fee and Commission income (+24% year-on-year), Investment Income (+9% year-on-year) and net trading income (586% year-on-year).
- Cost-to-Income ratio: During the period under review, the Group cost-to-income ratio declined by 0.85 percentage points to 44.58% from 45.43% in HY 2021 largely driven by 33% growth in revenue against a 31% growth in operating expenses which was driven by 31% growth in other operating expenses, 55% growth in personnel expenses and 14% growth in impairment allowance. This shows improvement in
operational efficiency. - PBT Margin: United Capital recorded improvement in Profitability margin during the period under review as PBT margin grew by 2.98 percentage points to 57.56% in HY 2022 compared to 54.57% in HY 2021.
- PAT Margin: The company PAT margin also improved, gaining 2.85 percentage point to 48.69% in HY 2022 compared to 45.84% in HY 2021 as PAT increased by 41% year-on-year during the period.
- Total Assets: During the period under review, Total assets grew by 17% year-to-date to 531.79billion in HY 2022 compared to 453.60billion in FY 2021 majorly driven by 318% growth in cash and cash equivalents.
- Total Liabilities: Total liabilities grew by 19% year-to-date to N505.27billion in HY 2022 compared to N423.05billion in FY 2021 largely driven by 20% year-to-date growth in Managed fund and 45% year-to-date growth in other liabilities.
- Shareholders’ Fund: Shareholders’ funds declined by 13% year-to-date to N26.53billion in HY 2022 compared to N30.55billion in FY 2021 due to N9billion dividend payout during the period under review.
Following the release of the H1 2022 result, United Capital Plc will be e hosting an Investors and Analysts
conference call on Wednesday 27th July 2022 to discuss it’s performance and overall outlook for the rest of 2022.
About United Capital Plc (UCAP)
United Capital Plc (previously called UBA Capital Plc) was incorporated in Nigeria, as a public liability company, on 3 August, 2012, to act as the ultimate holding company for the United Capital Group.
UCAP was listed on the Nigerian Stock Exchange on 17 January, 2013. It changed its name to United Capital Plc following the approval of the resolution by shareholders on 16th December, 2014.
The principal activities of the Group are mainly the provision of investment banking services, portfolio management services, securities trading and trusteeship.
UCAP has 6 billion outstanding ordinary shares and a market capitalization of N35.880 billion. It shares were trading at N12.80 at the close of trading on Tuesday on The Nigerian Exchange Limited.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
