Investment banking group, United Capital Plc, on Wednesday presented its unaudited financials for the nine months ended September 30, 2024, showing robust 61% growth in revenue in the period, while profit growth was faster 89% in what may suggest the possibility of juicier dividend payout to shareholders at year-end.
Gross earnings for the period rose to N28.165bn from N17.507bn, the bulk of which was the N10.509bn earned from fee and commissioned income, up from N5.744bn, lifted by other fees and commissions income of N8.393bn, compared to the previous N4.718bn; with financial advisory fees garnered N2.116bn, up from N1.026bn.
Interest from placements and bonds grew from N3.601bn to N11.604bn; income from loans stood at N8.739bn from N4.45bn; dividend income from securities investments dropped from N2.423bn to N1.231bn. Loss on disposal of investment was N479.068m, compared to a profit of N97.172m; while income from managed funds soared from N36.239bn to N56.031bn; totaling N77.127bn from N46.811bn in the corresponding period of last year.
Interest expense on management funds and other borrowings amounted to N68.711bn, up from N37.863bn, following which net investment income dropped marginally to N8.416bn, from N8.947bn. Net trading income inched from N1.345bn in the corresponding period to N3.414bn.
Net operating income rose to N22.339bn from N16.038bn.
Other income for the period soared from N941.571m in the same period of last year to N6.256bn; just as net loss on financial assets at fair value through profit or loss stood at N430.811m, compared to net gain of N527.692m.
Personnel expenses increased to N3.642bn from N2.152bn, boosted by staff cost of N3.542bn, up from N2.093bn; other operating expenses soared to N7.734bn from N4.866bn; and depreciation of property and equipment dropped marginally from N143.665m from N145.217m. Amortisation of intangible and right of use assets grew from N98.212m to N191.98m; while recoveries amounted to N569.172m, compared to the previous impairment for credit losses amounting to N1.0bn. A total expenses at N11.143bn, an increase from the previous N8.262bn, resulted in operating profit before income tax of N17.022bn; up from N9.245bn.
The company’s share of accumulated profit of associates grew to N1.708bn from N474.662m. Profit before income tax rose to N18.731bn from N9.72bn; while income tax expense of N2.746bn, rising from N1.249bn resulted in a profit after tax of N15.984bn from N8.47bn; translating to earnings per share of N3.55, compared to the previous N1.88 each.
Commenting on performance, Peter Ashade, United Capital’s Group Chief Executive Officer, described it as impressive despite what he called “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,” he stressed.
Ashade recalled that the group in September successfully led the historic issuance of Nigeria’s first-ever Domestic FGN US Dollar Bond, raising over $900m, achieving an outstanding 180% subscription rate.
As part of the group’s “focused business development initiative, we launched UCee Microfinance Bank making the business our seventh subsidiary.”
Going forward into the last quarter of the year, he expressed the group’s determination “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,” he stressed, expressing appreciation to the various stakeholders for their unwavering support and strong dedication.
