United Capital Plc (NGX: UCAP) has reported a 89% year-on-year growth in profit after taxation for the Nine months period ended September 30, 2024.
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The investment banking services company released it’s unaudited financial statements for the period earlier in the week, posting strong earnings performance.
Gross earnings grew by 61% year-on-year to N28.17 billion, profit before tax rose by 93% year-on-year to N18.73 billion, profit after tax grew by 89% year-on-year to N15.98 billion, total assets increased by 36% year- to-date to N1.26 trillion while Shareholders’ Funds grew by 27% year-to-date to N115.03 billion. Earnings per share rose by 89%, from 355 kobo to 188 kobo.
The growth in Gross earnings came from significant boost in fee and commission income which grew from N5.74 billion in 2023 to N10.50 billion. Other income also grew from N941.57mn to N6.25 billion.
Commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say:
“United Capital group recorded an impressive performance in Q3 2024 despite the challenging and uncertain business environment characterised by rising inflationary trend, volatile currency exchange rate amid the fast-changing macroeconomic landscape. Our performance is a testament to the resilience of our business model, strong risk management culture and effective execution of our well-crafted strategies.
The group delivered Gross Earnings of N28.17 billion with 61% year-on-year growth, Profit before Tax of N18.73 billion on the back of a strong year-on-year growth of 93%, Shareholders’ value improved by 27% from N90.71 billion to N115.03 billion.
In September, we successfully led the historic issuance of Nigeria’s first-ever Domestic FGN US Dollar Bond, raising over $900 million and achieving an outstanding 180% subscription rate. Through our focused business development initiative, we launched UCee Microfinance Bank making the business our seventh (7th) subsidiary.
As we proceed into the last quarter of the year, we are determined to sustain this performance with focus on delivering superior value to our shareholders. We remain committed to our vision of being the leading investment and finance hub across Africa, deploying innovation and technology to exceed client expectations.
Finally, I would like to sincerely appreciate our Board, shareholders, customers and staffs for their unwavering support and strong dedication.”
KEY PERFORMANCE HIGHLIGHTS
Income Statement:
❖ Gross Earnings: N28.17 billion in 9M 2024, compared to N17.51 billion in 9M 2023 (61% growth year-on-year)
❖ Operating expenses: N11.14 billion in 9M 2024, compared to N8.26 billion in 9M 2023 (35% growth year-on-year)
❖ Profit Before Tax: N18.73 billion in 9M 2024, compared to N N9.72 billion in 9M 2023 (93% growth year-on-year)
❖ Profit After Tax: N15.98 billion in 9M 2024, compared to N8.47 billion in 9M 2023 (89% growth year-on-year)
❖ Annualized Earnings Per Share: 355 kobo in 9M 2024, compared to 188 kobo in 9M 2023 (89% growth year-on-year) Statement of Financial Position:
❖ Total Assets: N1.26 trillion, compared to N931.95 billion as at December 31, 2023 (36% year-to-date growth)
❖ Total Liabilities: N1.15 trillion, compared to N841.23 billion as at December 31, 2023 (37% year-to-date growth)
❖ Shareholders Fund: N115.03 billion, compared to N90.71 billion as at December 31, 2023 (27% year-to-date growth)
Comparing 9M 2024 with 9M 2023, the following are worthy of note:
- Gross Earnings: United Capital’s gross earnings grew by 61% year-on-year to N28.17 billion in September 2024 compared to N17.51 billion in September 2023 largely driven by growth in Fee and Commission income (+83% year-on-year), Net trading income (+154% year-on-year) and other income (+564% year-on-year).
- PBT and PAT: During the period under review, profit before tax grew by 93% year-on-year to N18.73 billion while profit after tax increased by 89% year-on-year to N15.98 billion driven by 61% growth in gross earnings against 35% growth in total expenses.
- Total Assets: United Capital’s total assets rose by 36% year-to-date to N1.26 trillion in September 2024 compared to N931.95 billion in December 2023 majorly driven 199% growth in cash and cash equivalents during the period.
- Total Liabilities: The company’s total liabilities increased by 37% year-to-date to N1.15 trillion in September 2024 compared to N841.23 billion in December 2023 largely attributable to 28% year-to-date growth in managed funds and 59% year-to-date growth in borrowed funds.
- Shareholders’ Fund: United Capital Shareholders’ funds grew by 27% year-to-date to N115.03 billion in September 2024 compared to N90.71 billion in December 2023 majorly driven by 44% year-to-date growth in fair value reserve.
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.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur