- Reports 65% Net Profit Growth
The board of United Capital Plc, on Wednesday published its unaudited financials for the half-year ended June 30, 2024, highlights of which included the 38% growth in gross earnings, which was out-paced by the 65% rise in profit after tax for the period.
The company joined the league of interim dividend paying companies for the first time, as the board recommended an interim dividend of 90 kobo per share, in addition to the two bonus shares for every one held by existing shareholders whose names appear in the register of members as of July 31, 2024, while payments will be made electronically on August 9.
Gross earnings for the period stood at N15.15bn, up from the previous N11.014bn, boosted by net operating income which grew from N9.267bn in the corresponding period of last year to N12.763bn. Of this amount, fee and commission income, which contributed N6.308bn, up from N3.672bn; investment income dropped marginally to N4.692bn from N4.962bn; while net trading income grew from N622.599m to N1.762bn. Other income pooled N1.98bn from N1.128bn; just as net gain on financial assets at fair value through profit or loss fell to N403.222m from N627.784m.
Total expenses grew to N6.667bn from N5.745bn, the lion’s share of which was the N4.668bn in other operating expenses, compared to the previous N3.032bn; just as personnel expenses increased from N1.357bn to N2.287bn. Impairment for credit losses turned positive at N451.582bn, as against the previous negative N1.194bn.
Operating profit before income tax, therefore, stood at N8.48bn, up from N5.268bn; share of accumulated profit of associates leaped from N274.535m to N576.863m; resulting in profit before income tax of N9.057bn from N5.543bn. Income tax expense soared from N854.16m to N1.32bn; resulting in net profit of N7.736bn from N4.689bn, which translates to Earnings Per Share of N2.58, up from N1.56 each.
Total assets for the period grew to N1.185tr, compared to N931.948bn at the end of last financial year December 31, 2023, lifted by the investment securities valued at N589.403bn, down from N693.984bn; just as cash and cash equivalents soared from N145.255bn in December 2023 to N494.146bn.
Total liabilities stood at N1.065tr from N841.234bn at the end of last full-year, lifted by managed funds worth N786.724bn, which increased from N600.106bn; while borrowed funds dropped from N200.822bn to N180.988bn.
Commenting on the performance, the Group Chief Executive Officer, Peter Ashade, expressed pleasure “that United Capital Plc closed the first half of the year on a strong note as evident in our impressive earnings growth and performance across key financial parameters.”
This, the company noted, affirms its “commitment to wealth creation and superior value delivery to our shareholders.”
The directors assured stakeholders about the company sustaining its “performance in 2024 having kicked off the second half of the year 2024 in a robust financial position with close to N1.3trillion funds under management comprising trusts, mutual funds, and other professionally managed investments for our clients across diverse segments.”
The Group said it is strongly positioned to deliver on its “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.”