By Esther Agbo
United Capital reported a 65 percent increase in post-tax profit, reaching N7.74 billion in the first half of 2024, up from N4.69 billion in the same period in 2023, according to its half-year financial statement filed with the Nigeria Exchange Limited on Wednesday.
The company’s gross earnings rose by 37.5 percent to N15.15 billion, compared to N11.01 billion in the first half of 2023. However, investment income declined by 5.4 percent, dropping from N4.96 billion in H1 2023 to N4.69 billion. Conversely, fee and commission income surged by 71.8 percent to N6.31 billion.
Net trading income increased significantly from N622.6 million in 2023 to N1.76 billion, and other income grew by 75.5 percent from N1.13 billion to N1.98 billion. As a result, United Capital’s total operating income reached N12.76 billion, a 37.9 percent increase from N9.26 billion in 2023.
Despite the revenue growth, the company faced higher personnel expenses, which rose by 68.5 percent to N2.29 billion from N1.36 billion in the prior period. Other operating expenses also increased by 53.9 percent from N3.03 billion to N4.67 billion.
Other operating expenses rose by 53.9 percent, increasing from N3.03 billion to N4.67 billion. Impairment for credit losses improved significantly, reversing to N451.58 million from a previous charge of N1.19 billion in 2023, with the firm’s total expenses rising to N6.67 billion from N5.75 billion in 2023.
The share of accumulated profit from associates increased by 110.2 percent, climbing from N274.54 million to N576.86 million. This contributed to a profit before income tax of N9.06 billion in 2024, up 63.4 percent from N5.54 billion in 2023.
The company’s comprehensive income for the period reached N34.87 billion, marking a 42 percent increase from N24.55 billion in 2023, driven by fair value gains on investments.
United Capital’s gross revenue increased by 71 percent year-on-year to N45.90 billion in 2023, fueled by a 63 percent rise in net trading income and an 865 percent year-on-year surge in other income. Last year, the financial services firm grew its pre-tax profit by 28 per cent to N17.30 billion, while post-tax profit rose by 18 percent to N11.42 billion.