The company revealed this in its unaudited financial
statements for the period ended September 30, 2021, submitted to the Nigerian
Exchange on Friday.
Summary of the scorecard shows that total revenue grew by
60% year-on-year to N11.33 billion, resulting in pretax profit increased 72%
year-on-year to N7.09 billion, whilst total assets grew by 80% year-to-date to
N400.75 billion.
The company’s revenue was driven largely by 112% year on
year growth in fee and commission income and a 43% increase in Investment
Income amidst low-interest rate environment that pressures yield on fixed
income instruments.
In its year on year analysis, the company said revenue hits
N11.33 billion in 9M 2021, compared to N7.07 billion in 9M 2020, rising by 60%
amidst the tough operating environment.
Operating Income however settled at N11.08 billion in 9M
2021, compared to N6.76 billion in 9M 2020, represents an uptick of 64% in the
period.
On the other hand, United Capital’s operating expenses
printed at N4.24 billion in 9M 2021, representing an uptick of 44% when
compared to N2.95 billion in 9M 2020 amidst a steep inflation rate in the
country.
Its earnings position was however stronger as the company’s
pretax profit closed the period at N7.09 billion, rising by 72% compared to
N4.12 billion in 9M 2020.
Offsetting its tax provision, profit after tax printed at
N5.97 billion in 9M 2021, compared to N3.46 billion in 9M 2020. This resulted
in annualized earnings per share of133 Kobo as against 77 kobo in the
comparable period in 2020.
Total assets grew 80% to N400.75 billion from N222.75
billion as of 2020 driven by 89% jump in the company’s total liabilities which
settled at N373.86 billion, compared to N198.32billion as at 2020
The company’s shareholders’ fund was N26.89 billion at the
end of the period, compared to N24.43 billion as at financial year2020,
recording 10% year-to-date growth.
Looking at the proportion of cost-to-income, United Capital
said the company continue to maintain improvement in operational efficiency.
The cost-to-income ratio for the period declined by 10.25
percentage points largely attributable to the impressive 64% growth in revenue
relative to a 44% uptick in operating expenses.
In terms of profit margin, United Capital also recorded an
improvement. PBT margin increased by 7.32 percentage points to 62.60% in 9M
2021 compared to 58.33% in 9M 2020 as PBT grew by 72% year-on-year during the
period under review.
PAT margin also increased, gaining 7.47 percentage points to
52.65% in 9M 2021 compared to 49.00% in 9M 2020 as PAT increased by 72%
year-on-year during the period.
United Capital said the company’s total liabilities
increased by 89% year-to-date majorly due to a 150% year-to-date increase in
manage funds. Shareholders’ funds increased by 10% year-to-date driven by 8%
growth in retained earnings despite 4.20 billion dividends payout during the
period under review
Commenting on the Group’s performance the Group CEO, Mr.
Peter Ashade, had this to say: I am pleased to inform our stakeholders that
United Capital ended the third quarter of the year with another outstanding
performance.
“We delivered increased revenue of 60% year-on-year, PBT
growth of 72% year-on-year to N7.09b and total asset growth of 80%
year-to-date. During the period under review, United Capital successfully
listed three series of commercial papers worth N19.72 billion on the FMDQ
Securities Exchange.
“The CPs were issued under the company’s N50 billion
commercial paper issuance program. This has further positioned us as a company
to provide a wider range of wholesale financing solutions to our clients and
complement the funding base and support for all our businesses.
“Another remarkable point to note was the Nigerian Stock
Exchange’s reclassification of United Capital shares from Low Price Stock Group
to Medium Price Stock Group in August 2021 driven by steady growth in the
company’s share price over the past months due to our consistent impressive
performance over the years.
“I want to assure our stakeholders that we are optimistic
about sustaining this exciting performance in the last quarter of the year and
beyond. We remain focused on our transformation agenda and continue to provide
best-in-class solutions to all client segments. We are also committed to
delivering superior returns as we seek to always delight our shareholders”.
#United Capital Records 72% Profit Growth to N7.09 Billion
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