United Capital Posts N11.3bn Earnings in Nine Months
By Dipo Olowookere
In the first nine months of 2021, United Capital Plc increased its gross earnings by 59.2 per cent or N4.2 billion to N11.3 billion from N7.1 billion in the same period of last year.
This was majorly buoyed by growth in the investment income, which raked in N6.3 billion compared with the N4.4 billion achieved in the same period of last year.
A cursory look into the investment income showed that revenues from dividend income from securities investments and profit on disposal of investment mainly helped the income line, while revenue from managed funds also supported significantly by contributing N4.2 billion compared with N2.4 billion a year ago.
These revenue streams ensured that the impact of the decline in the earnings from interest from placements and bonds was not felt. In the period under consideration, the revenue line recorded N673.6 million versus the N1.5 billion it generated in the first nine months of last year, which was affected by the COVID-19 pandemic.
In the financial statements filed to the Nigerian Exchange (NGX) Limited on Friday, United Capital said it generated N4.4 billion as fee and commission income in Q3 of 2021 as against the N2.3 billion a year ago, while the net trading income raked in N15.6 million versus N125.3 million.
In terms of the expenditure side of the results, Business Post observed that the personnel cost gulped N1.3 billion in contrast to N1.2 billion it gulped in the first nine months of 2020, while the other operating expenses increased to N2.1 billion from N1.3 billion. These and others pushed the total expenses higher to N4.2 billion from N3.0 billion.
As a result, the company, as of September 30, 2021, reported a profit before tax of N7.1 billion compared with N4.1 billion it closed at the same period of last year, while the post-tax profit stood at N6.0 billion as against N3.5 billion a year ago.