United Capital reports 93% pre-tax profit increase to N18.73bn in 9 months

Onome Amuge

United Capital Plc, a leading investment banking group in Nigeria has recorded a 93 percent year-on-year increase in profit before tax to N18.73 billion for the nine-month period ending September 30, 2024.

United Capital’s unaudited financial results for Q3 of 2024 further revealed an 89 percent year-on-year increase in profit after tax, rising from N8.47 billion in 2023 to N15.98 billion in 2024.

This strong performance was reflected in the company’s earnings per share, which grew from N1.88 in the nine-month period of 2023 to N3.55 in the same period of 2024

United Capital Plc also reported a 61 percent year-on-year growth in gross earnings for the nine-month period of 2024, rising to N28.17 billion compared to N17.51 billion in the same period of 2023.

This revenue spike, according to the company, was driven primarily by significant increases in three key areas: Fee and commission income, net trading income, and other income, which collectively contributed to the company’s overall growth and solid financial position.

In addition to its strong revenue and earnings growth, United Capital Plc also reported a notable increase in its total assets, which rose by 36 percent year-to-date to N1.26 trillion in September 30, 2024, compared to N931.95 billion at the end of December 2023.

While United Capital Plc recorded revenue growth and asset expansion during the nine-month period ending September 30, 2024, the company’s operating expenses also increased significantly, rising by 35 percent to N11.14 billion, up from N8.26 billion in the corresponding period of 2023.

United Capital’s shareholders’ funds experienced notable growth in the nine-month period ended September 30, 2024, increasing by 27 percent to N115.03 billion compared to N90.71 billion at the end of December 2023.

The significant growth in shareholders’ funds was primarily driven by a 44 percent increase in the company’s fair value reserve, a key component of shareholders’ equity that reflects the company’s unrealised gains and losses from its investments in financial instruments.

Peter Ashade, the group chief executive officer of United Capital Plc, expressed his satisfaction with the company’s performance during the third quarter of 2024, stating that the company achieved an impressive performance in Q3, 2024 despite the challenging and uncertain business environment characterised by rising inflationary trends, volatile currency exchange rates, and a rapidly shifting macroeconomic landscape.

The company’s performance, he stated,  is a testament to the resilience of its business model, strong risk management culture and effective execution of its well-crafted strategies.

Commenting further on the company’s performance during the period under review, he said, “The group delivered gross earnings of N28.17 billion with 61 per cent year-on-year growth, profit before tax of N18.73 billion on the back of a strong year-on-year growth of 93 per cent, and shareholders’ value improved by 27 per cent from N90.71 billion to N115.03 billion.

“In September, we successfully led the historic issuance of Nigeria’s first-ever Domestic FGN US Dollar Bond, raising over $900 million and achieving an outstanding 180 per cent subscription rate.”

He also remarked that the company, through its focused business development initiative, was able to launch UCee Microfinance Bank, making the business its seventh subsidiary.

“As we proceed into the last quarter of the year, we are determined to sustain this performance with focus on delivering superior value to our shareholders. We remain committed to our vision of being the leading investment and finance hub across Africa, deploying innovation and technology to exceed client expectations.

“Finally, I would like to sincerely appreciate our Board, shareholders, customers and

staff for their unwavering support and strong dedication,” he concluded.