United Capital’s Revenue, PAT Drop 17% in H1 2019

By Dipo Olowookere

The revenue generated by United Capital Plc in the first six months of this year depreciated by 17 percent to N3.2 billion from N3.9 billion, the financial statements released by the company have revealed.

A breakdown of this showed that in the period ended June 30, 2019, the firm raked a total of N1.689 billion from investment income compared with the N1.774 billion realized as at June 30, 2018.

Also, there was a decline in the fee and commission income in the period under review, going down to N772.3 million from N930.4 million, while the net trading income went down to N52 million from N121.2 million, with the net interest margin appreciating to N308.2 million from N272.9 million.

A further analysis of the results by Business Post showed that the net operating income generated by the company fell to N2.8 billion from N3.1 billion, while the other income reduced to N419.9 million from N758.5 million, with the firm closing H1 2019 with a N1.5 million net loss on financial assets against the N24 million gain in net gains in H1 2018.

In the first six months of this year, United Capital said it spent N622.3 million on personnel expenses compared with N633.7 million used on the same purpose in the first six months of last year, while the total expenses stood at N1.3 billion in H1 2019 against N1.5 billion in H1 2018.

In the period under consideration, United Capital said its profit before tax went down by 17 percent to N1.987 billion from N2.394 billion, while the profit after tax also declined by 17 percent to N1.669 billion from N2.011 billion.

The earnings per share (EPS) went down during the period under review to 28 kobo from 34 kobo.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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