United Capital Reports 88.7% Increase In Net Profit

United Capital Plc, a prominent financial and investment services company, has reported a remarkable 88.7 percent increase in net profit for the nine months ending September 2024, according to its recent earnings report.

This impressive performance highlights the company’s resilience in a challenging business environment characterized by rising inflation, volatile currency exchange rates, and a fast-changing macroeconomic landscape.

The group’s revenue soared by over 60 percent to N28.2 billion, driven primarily by substantial increases in fee and commission income, along with notable exchange gains. Chief Executive Officer, Mr.  Peter Ashade, emphasized the firm’s strong performance, stating: “United Capital group recorded an impressive performance in Q3 2024 despite the challenging and uncertain business environment.”

A significant highlight of the quarter was the historic issuance of Nigeria’s first-ever domestic federal government (FGN) US dollar bond, successfully raising over $900 million and achieving an exceptional subscription rate of 180 percent. This milestone marks a crucial achievement for United Capital and stresses its leadership in the investment banking sector.

In August, United Capital further expanded its portfolio by launching UCee Microfinance Bank, its seventh subsidiary, reinforcing its commitment to broadening its service offerings. The group, which was a unit of United Bank for Africa until 2014, continues to enhance its position in the financial services industry.

Despite a rise in total expenses from N8.3 billion to N11.4 billion during the review period, the company reported a profit before tax of N18.7 billion, up 92.7 percent year-on-year. Profit after tax also surged, increasing to N16 billion from N8.5 billion in the same period last year. The profit margin improved significantly, standing at 56.8 percent compared to 48.4 percent a year earlier, reflecting effective cost management and operational efficiency.

Moreover, the share of accumulated profits from associate companies rose dramatically by 260 percent to N1.7 billion. United Capital holds a 25 percent stake in both Heirs Insurance Limited and Heirs Assurance Limited, further diversifying its investment portfolio.

The company’s total assets increased by more than one-third to N1.3 trillion, compared to the end of the previous year. However, the stock has faced challenges, shedding 21.3 percent in value so far this year.

In recognition of its growth, Financial Times had ranked United Capital 67th on its list of Africa’s fastest-growing companies for 2023, highlighting the firm’s significant impact on the continent’s financial landscape.