H1 2020: United Capital reports 16% increase in profit


By Kayode Tokede

United Capital Plc announced its Unaudited Financial Statements for the period ended June 30, 2020 with profit After Tax gaining 16 per cent to N1.91 billion in H1 2020, compared to N1.65 billion in H1 2019.

The results released to the Nigerian Stock Exchange (NSE) on Thursday showed profit before tax of N2.27 billion in H1 2020, compared to N1.99 billion in H1 2019, a 14 per cent YoY Increase.

During the period under review, the Group showed significant growth in key indicators despite the challenging global economic climate.

Total Revenue in H1 2020 soared to N4.45billion from N3.24billion in H1 2019, an increase of 14.10per cent.

The total revenue of United Capital Plc surged 37.26per cent in H1 2020 compared to its revenue of H1 2019.

This significant increase is on the back of a strong year-on-year increase of 347.65 per cent increase in net interest margin, 85.03 per cent increase in net trading income and 77.15 per cent increase in fee and commission income.

United Capital report total assets increase of 46.03per cent, being well financed by a 54.04per cent increase in Liabilities and a slight decline in Shareholders Fund by 7.47per cent.

Total Assets appreciated by 46.03 per cent between H1 2020 and 2019 financial year, significantly on account of over 242.09 per cent increase in cash and cash equivalent holdings and 9.29per cent increase in trade and other receivables.

While commenting on the group’s performance the Group CEO, Mr. Peter Ashade, in a statement had said, “The COVID-19 pandemic has lasted than envisaged and caused greater speculations of global recession and slower global recovery from the pandemic.

“The Nigerian economy has been greatly affected by the pandemic as seen in the increasing depreciation of the exchange rate, inflation rate and other economic indicators.

“As we stated at the release of our last quarter result, our business was not immune to these challenges; however, the Group was able to endure the challenges- Thanks to the well-articulated and diligent implementation of our plans set out last year.

“With our well-articulated plans, business continuity plan in economic crisis and solid risk assessment framework we were able to deliver an increased revenue of over 37.26 per cent, increased PBT of 14.10 per cent and PAT increase of 15.98 per cent.

“During this same period, we successfully issued our N10 billion Series 1 bond under the N30 billion Medium-Term Debt Program – The first to be issued by an investment banking firm in Nigeria – which was oversubscribed by about 24 per cent.”

“Going into the remaining half of the year, we remain assiduously committed to deliver greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time.”

Discussing the result further he stressed that; “In line with our initial strategy for the 2020 business year, we shall continue to push further our market diversification and cost-optimization initiatives as well as implement phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders.”