United Capital Declares 35 kobo Per Share Dividend as PBT Drops 13%

By Modupe Gbadeyanka

One of Africa’s leading investment banking groups, United Capital Plc, has announced its audited 2017 full year financial results, showing a turnover of N8.9 billion and profit before tax of N5.5 billion, for the year ended December 31, 2017.

The company delivered an annualized Earnings Per Share of 73Kobo and declared a dividend of 35 Kobo per share.

Despite the uncertain economic environment of 2017, United Capital generated gross earnings of N8.9 billion, a slight decline of 1 percent from N9 billion in 2016.

However, operating income improved by 5 percent from N6.7 billion in 2016 to N7 billion in 2017, while the profit before tax declined by 13 percent from N6.4 billion to N5.5 billion owing to non-recurrent foreign exchange revaluation gains of N1.3 billion realised in 2016.

In 2016, the group recognized one-off foreign exchange gains of N1.3 billion following the devaluation of the Naira.

From the financial results, the firm’s shareholders’ funds improved by 18 percent from N14.2 billion to N16.8 billion despite a drop in total asset by 15 percent attributable to significant payouts to bondholders by the trustee business.

Despite sustained macroeconomic challenges in, United Capital Plc has maintained its position as a market leader delivering innovative solutions to its clients across its businesses.

“The rise in group operating income was driven by efficient execution of key mandates in investment banking, trusteeship and securities brokerage and by the introduction of innovative products such as the Nigerian Eurobond Fund and the Wealth for Women Fund and by improvements in operations and IT capabilities, ensuring the optimization of value and retention of a significant proportion of earnings.

“United Capital continues to pursue a clear and consistent strategy, which will always deliver a strong performance for shareholders, and we remain positive about our future opportunities within the Nigerian and African market,” stated Group Chief Executive Officer, Oluwatoyin Sanni.

Highlights of 2017 successes in key business areas include, but are not limited to the launch of two new Mutual Funds – Wealth for Women Fund and Nigerian Eurobond Fund; Financial Advisory services to the UBA $500 million Eurobond; Issuing House and Joint Trustee Mandate to the LASG N100 billion Bond Issue; Received an ‘A-’ Credit Rating from top Pan African Credit Rating Agency, Agusto & Co, an upgrade from the firm’s ‘BBB+’ rating the previous year (2015); and awarded Most Outstanding Company of the year 2017 by the Peral Award Board.