Nigeria: United Capital Grows Nine-Month Profit By 26% to N4.1 Billion

21 October 2020

United Capital Plc has reported improved results for the nine months ended September 30, 2020 despite the challenging economic operating environment.

Gross earnings rose 33 per cent from N5.32 billion in 2019 to N7.07 billion in 2020.

Net operating income jumped by 58 per cent from N4.29 billion to N6.76 billion, while operating expenses increased 44 per cent from 2.05 billion to N2.95 billion.

Consequently, profit before tax (PBT) rose 26 per cent to N4.12 billion, from N3.27 billion in 2019. Profit after tax grew by same margin from N2.75 billion to 3.46 billion.

Commenting on the results, the Group Chief Executive Officer (CEO), Mr. Peter Ashade, said:

Notwithstanding the challenges the group has remained nimble. "We continued to implement our business growth and continuity plans premised on a solid risk assessment framework to ensure we remained focused on providing best-in-class solutions to all client segments.

"These contributed to the impressive growth across our businesses leading to 33 per cent growth in revenue and 26 per recent increase in both PBT and PAT during the nine-month period.

He explained that in Q2,the group successfully issued N10 billion Series 1 Bond under the N30 billion Medium-Term Debt Programme - the first to be issued by an investment banking firm in Nigeria -which was oversubscribed by about 24 per cent.

He said the company had begun yield the fruit of that strategic decision.

According to him, going into the last quarter of the year, they are encouraged by the increasing market confidence in their brand even in the wake of the most globally devastating pandemic of the last century.

"We know the operating environment is turbulent, but we are committed to deliver superior returns to our shareholders, as we drive growth and profitability across all our businesses," Ashade said.

He said in line with their initial strategy for the 2020 business year, "we shall continue to push further our market diversification and cost-optimisation initiatives as well as implement phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders."

Meanwhile, trading at the stock market was slightly positive yesterday, as the Nigerian Stock Exchange (NSE) All-Share Index rose 0.03 per cent to close at 28,665.82 points. The total volume of trades increased by 3.5 per cent to 297.31 million shares, valued at N2.93 billion and exchanged in 4,736 deals.

More From: This Day

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.