Shareholders of United Capital Plc, on Tuesday at its annual general meeting approved the distribution of N4.2bn in total dividend payout, which translates to 70 kobo per share as proposed by the board for the year ended December 31, 2020.
The approval followed consideration of the company’s its financial performance for the period under review, highlights of which included gross revenue of N12.87bn, N7.95bn Profit Before Tax and earnings per share of N1.30.
Its flagship digital platform, InvestNow, recorded over N1.0bn in processed investors assets with its newly commissioned consumer finance business line disbursing 64,536 instant loans valued at N3.14bn, leveraging a 100% digital model.
Major contributors to the company’s overall performance are its subsidiary businesses – Investment Banking, Asset Management, Securities and Trustees.
This was highlighted in the company’s emergence as top three largest Fund Manager from 10th position in 2019 with its Mutual Fund Assets Under Management exceeding N162bn at the end of 2020 from N39bn as at year-end 2019. The company also served as the lead issuing house and trustee on various high-profile public and private securities issuances with a total value exceeding N400bn in 2020 among others.
Commenting on the performance, Chairman of the board, Chika Mordi, said the outstanding performance was despite the macroeconomic pressure, as seen in the rise in total revenue by 50% year-on-year, from N8.59bn in 2019.
Profit Before Tax, he noted, was even better, growing by 61% from N4.95bn in the preceding year, signifying solid growth in the overall profitability of the Group.
“The Group’s Return on Average Equity for the 2020 financial year stood at 35%, one of the highest among listed financial services institutions, highlighting strong value creation for our shareholders,” Mordi added.
Speaking to the outlook for the 2021 financial year, the Group Chief Executive, Peter Ashade, noted that United Capital’s performance despite the year of protracted disruptions, 2020 was “is a testament of our unwavering commitment to our clients’ needs, come what may.
“For us at United Capital, we are optimistic about the year 2021 as it presents greater opportunities for innovation, growth, and expansion beyond our current ecosystem,” he added.
Besides the outstanding financial performance, United Capital Plc, according to a statement, also recorded landmark achievements with an improved corporate rating from BBB+ to A- with a stable short-term and long-term outlook reflective of an investment grade institution.
The shareholders also approved the appointment of two new Independent Non-Executive Directors: Titus Oladipupo Fatokun and Hajiya Sutura Aisha Bello.
Photo caption: From left, Independent Non-Executive Director, Hajiya Sutura Aisha Bello; Group CEO, Peter Ashade; Non-Executive Director, Emmanuel Nnorom; General Counsel, Leo Okafor; and Group Executive Director, Sunny Anene, at the Annual General Meeting of United Capital Plc, held in Lagos on Tuesday.
