United Capital Sets N2trn Assets Goal on Strong H1 Performance

By Adedapo Adesanya

United Capital Plc has unveiled an ambitious roadmap to surpass N2 trillion in total assets by the end of 2026, following a strong first-half performance that saw gross earnings rise by 58 per cent to N37.9 billion and profit before tax increase by 80 per cent.

The company disclosed this during its H1 investor relations call on Wednesday, where executives outlined plans to drive growth through digital transformation, Pan-African expansion, and disciplined capital management.

Speaking during the call, Group Managing Director of United Capital Plc, Mr Peter Ashade, said the company is undergoing a major “retooling” process to position itself for long-term growth beyond Nigeria.

“We are equipping from people, technology, governance, and our structure as we retool because what we see ahead is bigger than where we are today,” Mr Ashade said.

He noted that the firm’s long-term vision is to build a platform that allows clients to trade seamlessly across its African footprint, including Nigeria, Côte d’Ivoire, Ethiopia, Rwanda, Senegal and Burkina Faso.

Mr Ashade added that the company has deliberately reduced its borrowing in favour of expanding its managed funds business, which it considers its biggest growth opportunity.

“We have decided deliberately to reduce our borrowing so that we can focus on growing managed funds to about 71 per cent of our funding size, which is where we see the greatest opportunities for the group,” he said.

He disclosed that managed funds have recorded significant growth, while total assets have already exceeded the N1 trillion mark.

“Our target for this year is to do over N2 trillion in terms of total assets,” he added.

Providing a breakdown of the financial performance, Group Chief Financial Officer, Mr Shedrack Onakpoma, said profit before tax rose to N24.78 billion, significantly outpacing revenue growth as a result of improved operational efficiency.

“We are building a resilient and thriving institution of great repute that focuses on sustainable value creation and delivery across multiple markets,” Mr Onakpoma said.

“The numbers tell a story of innovation and how we are building a lasting legacy that goes beyond mere revenue growth or short-term profitability.”

Addressing shareholders’ concerns over the company’s 30 kobo interim dividend, the firm’s Chief Economist, Ayodele Akunwunmi, said the decision reflects a long-term capital allocation strategy anchored on the residual dividend theory.

“Residual dividend theory says that a company must finance all profitable investments available from internally generated cash flows before paying the residual to shareholders,” Mr Akunwunmi explained.

“By financing our expansion this way rather than borrowing money that would dilute earnings, we have the opportunity to grow the bottom line and potentially double profitability in the future.”

He urged shareholders to focus on the company’s broader value creation strategy, arguing that prioritising investment today would generate stronger returns over the long term.