United Capital Plc, a financial and investment services company, reported a 39% increase in profit after tax to N2.31 billion for the first quarter (Q1) of 2022, the company disclosed in its unaudited financial statement.
Gross earnings grew by 35% year-on-year to N4.21 billion, while profit before tax appreciated by 36% in the same period to N2.69 billion. Net operating income rose by 14% from N3.12 billion in Q1 2021 to N3.55 billion in Q1 2022.
United Capital Financial Highlights
❖ Gross Earnings: N4.21 billion in Q1 2022, compared to N3.12 billion in Q1 2021 (35% growth year-on-year)
❖ Net Operating Income: N3.55 billion in Q1 2022, compared to N3.10 billion in Q1 2021 (14% growth year-on-year)
❖ Operating expenses: N1.64 billion in Q1 2022, compared to N1.15 billion in Q1 2021 (44% growth year-on-year)
❖ Profit Before Tax: N2.69 billion in Q1 2022, compared to N N1.97 billion in Q1 2021 (36% growth year-on-year)
❖ Profit After Tax: N2.31 billion in Q1 2022, compared to N1.66 billion in Q1 2021 (39% growth year-on-year)
❖ Annualized Earnings Per Share: 154 kobo. (Q1 2021: 111 kobo) Statement of Financial Position:
❖ Total Assets: N463.93 billion, compared to N453.60 billion as at FY 2021 (2% year-to-date growth)
❖ Total Liabilities: N440.08 billion, compared to N423.05 billion as at FY 2021 (4% year-to-date growth)
❖ Shareholders Fund: N23.85 billion, an 22% year-to-date decrease relative to FY 2021’s value at N30.55 billion.
Commenting on the company’s performance, Professor Chika Mordi, the Board Chairman, said “United Capital is on a remarkable growth path as reflected in our strong financial results in Q1-2022. We remain uniquely positioned to increase value delivery to all our stakeholders.”
Also, speaking on the group performance in the first quarter was the Group Chief Executive Officer, Mr. Peter Ashade. He said “As a financial market player, capital market operator, investment manager, and consumer lender, we play a unique role in expanding service offerings in the financial services ecosystem while creating and distributing wealth amongst diverse stakeholders.
“United Capital is on a sustainable growth trajectory driven by increasing patronage and expanded activities across all our businesses, and market segments that we serve. We kicked-off the year 2022 on a sure footing and we are poised to deliver new services and expand into new markets to grow our businesses in line with our three-year growth strategy.”
Nigerian Stock Exchange Bounces Back, Gains N132 Billion in Market Cap
The Nigerian Exchange Limited rebounded on Wednesday with the market capitalization surging by N132 billion.
This uptick was propelled by the positive performance of key stocks, including Seplat Energy (+10%), Meyer Plc (+9.79%), Sunu Assurance (+9.56%), Nestle (+9.52%), and Consolidated Hallmark Holdings Plc (+9.24%).
The All-Share Index closed rose by 0.34% to 71,283.34 points, reflecting investors’ optimistic sentiment, particularly in medium and large-cap stocks with solid fundamentals while the market capitalization increased to N39.007 trillion.
Despite a decline in total deals and volume by 19.14% and 32.55% to 6,579 deals and 360.60 million units respectively, the total value for the day increased by 17.64% to N6.61 billion.
Among the gainers, Seplat, Meyer, Sunu Assurance, Nestle Plc, and Consolidated Hallmark Holdings Plc stood out, closing at N2.310, N3.59, N1.49, N1.150, and N1.30 per unit, respectively, after gains ranging from 10% to 9.24%.
The losers’ chart was led by Guinea Insurance, down 10%, followed by Omatek (-9.88%), Abbey Mortgage Bank (-9.68%), Neimeth Pharma (-9.45%), and Tantalizer (-8.62%).
Performance across sectors was predominantly bullish, with the Insurance, Consumer Goods, Oil/Gas, and Industrial Goods indexes recording notable advancements of 1.17%, 0.89%, 6.06%, and 0.01%, respectively.
However, banking stocks emerged as the only laggard for the day, declining by 0.56%.
GT Bank (GTCO) dominated trading activities, emerging as the most traded security in terms of volume and value, with 56.91 million units worth N2.19 billion traded in 261 deals.
This positive momentum signals a renewed fervor in the Nigerian stock market.
Market Sheds N132 Billion as Union Bank Bows Out from NGX Official List
The official delisting of Union Bank of Nigeria from the Nigerian Exchange Limited (NGX) on Monday triggered a notable N132 billion loss from the market capitalization.
NGX Regulations Limited, the regulatory arm of the Nigerian Exchange Group, confirmed the delisting in a notice to trading license holders.
Union Bank’s shares were suspended on November 14, leading to the delisting, which resulted in a market cap loss.
On its last day on the NGX Daily Official List, Union Bank had a market cap of N193.65 billion, with shares closing at N6.65 per unit.
Titan Trust Bank Limited, Union Bank’s core investor, had earlier announced plans to acquire minority shareholders’ shares, leading to the delisting.
Despite the delisting impact, the All-Share Index closed positively at the end of Monday’s trading, rising by 0.17% or 123.33 points to 71,353.81.
However, the market cap closed at N39.040 trillion, N132 billion lower than the N39.172 trillion recorded on the previous Friday.
Key performers in the market included AccessCorp, United Bank for Africa, Zenith Bank Plc, and Universal Insurance Plc.
Positive investor sentiments resulted in 32 gainers and 20 losers. Notable gainers included First Bank of Nigeria Holding, John Holt, and Tantalizer, each gaining 10%.
ETranZact led the losers’ chart with a 9.09% dip, and Unity Bank, amidst reported business combination talks with Providus Bank, landed on the losers chart with a 9.24% loss.
The volume of transactions on the NGX slightly increased to 746.67 million units from 582.77 million units traded on Friday.
Banking stocks, including AccessCorp, UBA, and Zenith Bank, were the major drivers of the day’s trend, accounting for volume and value in the market.
Nigerian Stock Market Records Marginal Decline, MTN and Dangote Sugar Lead Losers
The Nigerian Exchange Limited witnessed a marginal downturn as market capitalization slipped by N35 billion on Wednesday.
The All-Share Index and Market Capitalization both depreciated by 0.09% to close at 71,003.98 points and N39.047 trillion, respectively.
Despite this dip, market breadth remained positive with 36 gainers and 15 losers.
Major contributors to the decline included MTN Nigeria (-0.63%), Dangote Sugar (-1.64%), Lafarge Africa Plc (-1.34%), United Bank for Africa (-0.24%), and FBN Holdings (-4%).
Gainers were led by RT Briscoe, Daar Communications, and Unity Bank, each posting a 10% gain. Meanwhile, MeCure Industries, Multiverse, and Secure Electronic Technology saw increases of 9.96%, 9.82%, and 9.52%, respectively.
On the downside, C&I Leasing, Prestige Assurance, International Breweries Plc, UPDC Real Estate Investment Trust, and FBN Holdings recorded losses of 7.58%, 7.55%, 5.56%, 4.60%, and 4%, respectively.
Sectoral performance varied, with the Banking and Insurance sectors posting marginal gains of 0.19% and 0.75%.
In contrast, the Consumer Goods and Industrial Goods sectors experienced losses of 0.19% and 0.08%, while the Oil/Gas index remained unchanged.
Market activity showed improvement, with total deals rising by 1.95% to 6,677 trades. The total traded value for the day surged by 128.85% to N7.37 billion, although the total volume declined by 12.81% to 428.44 million units.
Veritaskap led in trading volume, while MTN Nigeria dominated in terms of value, amounting to N2.81 billion.
The fluctuation in market indices underscores the dynamic nature of the Nigerian stock market, influenced by both local and global economic factors.
Investors are carefully navigating these shifts to optimize their portfolios in a constantly evolving market landscape.
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