United Capital gross earnings grow 21% F to N11bn in HY 2023

By Onome Amuge.

Foremost pan-African investment banking and financial services group, United Capital Plc. maintained its multi-year success streak as its gross earnings rose by 21 per cent year-on-year from N9.11 billion in half year (HY)  2022 to N11.01 billion in HY 2023, according to its unaudited financial results for the period ended June 30, 2023.

Further analysis of the company’s financials for the reviewed period showed that profit before tax (PBT) rose 6 per cent year-on-year to N5.54 billion,compared to  N5.24 billion in the corresponding period of 2022.  Profit after tax (PAT)  was up by 6 per cent year-on-year to N4.69 billion from N4.44 billion in HY 2022,

Notably,  total assets  grew 34 per cent year-to-date to N805.77 billion  compared to N601.92 billion as at December 2022, largely attributable to 43% per cent growth in cash and cash equivalents and 36 per cent growth in investment securities.

Meanwhile, the company’s total liabilities grew by 33 per cent year-to-date from N568.93billion as at December 2022 to N757.24 billion, driven by 16 per cent year-to-date growth in managed funds and 215 per cent year-to-date growth in other liabilities.

Net operating income stood at N9.26 billion in HY 2023, compared to N8.11 billion in HY 2022 , representing  a 14 per cent  growth year-on-year, while operating expenses rose 41 per cent year-on-year from N4.06 billion in HY 2022 to N5.75 billion in HY 2023.

United Capital shareholders fund grew by 47 per cent year-to-date to N48.54 billion in HY 2023 compared to N32.99 billion in FY 2022 largely attributable to increase in fair value reserve during the period under review.

Commenting on the group’s performance, Peter Ashade,  the group chief executive officer, said the  strong H1-2023 result as witnessed in the company’s earnings growth, among other parameters, reinforces its strong start to the year 2023 amid the very challenging operating environment in the first half of the year.

“Going into the second half of the year 2023, we continue to see emerging opportunities across all our business entities especially as new political dispensations settle in across the country,” he said.

Ashade noted further that the company is uniquely positioned to work with all agencies of government to implement the economic development objectives in line with the policy direction of the new administration which leans heavily on the capital markets and financial services industry.

“We will navigate the undulating business landscape in the remaining half of the year by harnessing opportunities that economic reforms will present to the financial services sector towards increasing value delivery to all shareholders,” he added.