Nigeria: United Capital Grows Full Year's Profit By 61% to N8 Billion

25 February 2021

Foremost pan-African financial and investment services group, United Capital Plc, an associated company of the UBA Group has defied the headwinds in the operating environment to record double-digit growth across major income lines for the year that ended December 31, 2020.

Despite the COVID-19 pandemic and the resultant challenging operating environment, United Capital also recorded a 50 per cent growth in gross earnings to close at N12.87 billion in December 2020, compared to N8.59 billion in 2019.

On an account of a significant 54 per cent increase in investment in financial assets, United Capital's total assets also rose by 48 per cent to N224.75 billion in the period under review, compared to N150.46 billion recorded at the end of the 2019 financial year. Shareholders' funds also grew to N24.43 billion rising by 25 per cent from 19.59 billion in 2019.

The investment banking institution leveraged on increased efficiency to deliver an impressive 61 per cent growth in profit before tax (PBT) to N7.95 billion compared with N4.95 billion at the end of 2019.

Similarly, profit after tax (PAT) stood at N7.81 billion, showing an increase of 57 per cent above the N4.97 billion it closed in 2019.

On the back of the strong performance, the directors of United Capital have proposed a dividend of 70 kobo per share, amounting to a total of N4.2 billion dividend to be paid upon ratification by shareholders at its forthcoming annual general meeting.

The 70 kobo dividend per share, which is higher than the 50 kobo per share declared in 2019, is payable to shareholders whose names appear on the register of members at the close of business on March 5, 2021.

Commenting on the company's performance, the Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade, expressed delight in the performance, which according to him is cheering news despite the challenges that most companies faced in the year 2020.

He said: "I am pleased to inform all stakeholders that United Capital delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in revenue, PBT and PAT and solid performance across key business parameters.

"This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges."

Speaking on its plan for the 2021 financial year, Ashade said: "Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021."

United Capital Plc is a leading pan-African financial and investment services group, with a mission to provide bespoke and innovative value-added services to its client. The group aims to transform the African continent by providing innovative and creative investment banking solutions to governments, companies, and individuals.

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