United Capital reports 64.21% increase in profit to N3.1bn
By Kayode Tokede
United Capital Plc has reported 64.21 percent to N3.14billion increase in its consolidated statement of profit or loss and other comprehensive income for the half year period ended June 31, 2021 from N1.9billion reported in prior period.
The company in its results on the Nigerian Exchange Limited (NGX) on Thursday reported 64.9 percent growth in profit before tax to N3.74billion in H1 2021 from N2.27billion in H1 2020.
Key drive to United Capital growth in profits was 54.1 percent growth in revenue to N6.85billion in H1 2021 from N4.44 billion reported in H1 2020.
United capital’s total assets closed June 30, 2021 at N320.23billion from N222.75billion reported in full year ended December 31, 2020.
The company had reported Profit before tax of 61 percent to N7.95billion in 2020 from N4.95billion in 2019, signifying solid growth in the overall profitability of the Group.
The Group’s Return on Average Equity for the 2020 financial year stood at 35 percent, one of the highest among listed financial services institutions, highlighting strong value creation for our shareholders.”
Speaking to the Company’s outlook for the 2021 financial year, the Group CEO, Peter Ashade, stated “Our financial performance, in what was a year of protracted disruptions, is a testament of our unwavering commitment to our clients’ needs, come what may. For us at United Capital, we are optimistic about the year 2021 as it presents greater opportunities for innovation, growth, and expansion beyond our current ecosystem.”
In addition to its outstanding financial performance, United Capital Plc also recorded landmark achievements during the year. The company’s corporate ratings improved from BBB+ to A- with a stable short-term and long-term outlook reflective of an investment-grade institution. Its flagship digital platform, InvestNow, recorded over N1billion in processed investors assets with its newly commissioned consumer finance business line disbursing 64,536 instant loans valued at N3.14billion, leveraging a 100% digital model.
Major contributors to the company’s overall performance are its subsidiary businesses – Investment Banking, Asset Management, Securities and Trustees.
This was highlighted in the company’s emergence as the top 3 largest Fund Manager from 10th position in 2019 with its Mutual Fund Assets Under Management exceeding N162billion at the end of 2020 from N39billion as at year-end 2019.
