Categories: Finance

United Capital Grows Profit After Tax by 57 Percent in 2020

United Capital Grows Profit After Tax by 57 Percent in 2020

Despite COVID-19 and a tough business environment, United Capital grew Profit After Tax by 57 percent in the year ended December 31, 2020.

The company disclosed in its audited financial statements filed with the Nigerian Stock Exchange (NSE) on Monday.

United Capital posted N12.87 billion gross earnings in 2020, 50 percent high when compared to N8.59 billion achieved in 2019.

Net operating income rose by 58 percent from N7.90 billion in 2019 to N12.49 billion in 2020. While operating expenses grew by 35 percent to N4.93 billion in the year under review, up from N3.64 billion in 2019.

Profit Before Tax jumped by 61 percent from N4.95 billion filed in 2019 to N7.95 billion in 2020.

United Capital grew Profit After Tax to N7.81 billion in 2020, 57 percent more than the N4.97 billion recorded in 2019.

Earnings Per Share also jumped from 83 kobo in 2019 t0 130 kobo in 2020.

Other Key Financial Highlights of United Capital

  • Total Assets: N224.75 billion, compared to N150.46 billion as at December 31 2019 (48% growth year-on-year)
  • Total Liabilities: N198.32 billion, compared to N130.88 billion as at December 31 2019 (52% growth year-on-year)
  • Shareholders Fund: N24.43 billion, a 25% increase year-on-year relative to N19.59 billion as at December 31 2019.

Commenting on the United Capital performance for 2020, the Group CEO, Mr. Peter Ashade, said “I am pleased to inform all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in Revenue, PBT and PAT and solid performance across key business parameters.

“This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.

Discussing the result further added that “Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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