United Capital Sustains Growth in H1 2018, Records N2b Profit

By Modupe Gbadeyanka

Leading Pan-African Investment Banking Group, United Capital Plc, on Thursday announced its unaudited 2018 half year financial results, showing gross earnings of N3.9 billion and Profit Before Tax of N2.4 billion, a slight increase from half year 2017.

United Capital sustained growth in earnings and profitability despite a challenging macroeconomic environment.

In spite of higher oil prices, CDP growth came in slower than expected in Q1 2018 as activities in the services sector of the Nigerian economy continue to constrain overall growth.

Also, events in the global space reversed the pace of foreign portfolio inflow into the local market amid rising interest rates in the United States and increased trade tension.

Average yield in the fixed income market moderated to 13.4 percent in June 2018, down by 0.69 percent compared with December 2017, lowering earnings yields for most financial services outfits.

Additionally, the equities market closed the period flattish as the euphoria which greeted the beginning of the year fizzled out in the later part as investors took a flight to safety.

Nevertheless, the group sustained growth in revenue and profitability, buttressing the firm’s commitment to delivering superior value to shareholders always.

Major highlights of the financial statements showed that gross earnings increased to N3.88 billion in contrast to N3.87 billion in H1 2017, while operating expenses closed at N1.49 billion against N1.5 billion in H1 2017.

Furthermore, the profit before tax was N2.39 billion compared with N2.38 billion in H1 2017, while the profit after tax stood at N2.01 billion in contrast to N1.99 billion in H1 2017.

A look at the balance sheet indicated that the total assets of the company stood at N135.3 billion against N136.6 billion as at FY 2017.

Also, the Funds under Management closed at N68.8 billion as at June 30, 2018 against N70.5 billion as at December 31, 2017, while the Shareholders’ Funds stood at N18.3 billion in the period under review in contrast to N16.8 billion as at FY 2017.

Commenting on the results, the Group CEO of United Capital, Mr Peter Ashade, stated that, “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, notwithstanding the challenging macro-economic environment.”