United Capital Plc Surpasses Expectations with 21% YoY Growth

United Capital Plc, a leading pan-African investment banking and financial services group, recorded a 21% year-on-year gain for the period ended June 30, 2023

The company posted N11.01 billion in gross earnings while the company’s Profit Before Tax (PBT) also grew by 6% year-on-year to N5.54 billion, indicating sustained profitability and effective cost management.

United Capital Plc reported a Profit After Tax (PAT) of N4.69 billion, representing a 6% increase compared to the previous year.

In terms of financial position, United Capital Plc demonstrated remarkable growth in Total Assets, which increased by 34% year-to-date to N805.77 billion.

Examining the financial ratios, the Price-Earnings (P/E) Ratio for United Capital Plc stood at 10.08 for the first half of 2023, indicating the market’s confidence in the company’s future earnings potential.

The Earnings per Share (EPS) also showed positive growth, rising to 156 kobo, compared to 148 kobo in the same period last year.

Highlights United Capital of Income Statement

❖ Gross Earnings: N11.01billion in HY 2023, compared to N9.11billion in HY 2022 (21% growth year-on-year)
❖ Net Operating Income: N9.26billion in HY 2023, compared to N8.11billion in HY 2022 (14% growth year-on-year)
❖ Operating expenses: N5.75billion in HY 2023, compared to N4.06billion in HY 2022 (41% growth year-on-year)
❖ Profit Before Tax: N5.54billion in HY 2023, compared to N N5.24billion in HY 2022 (6% growth year-on-year)
❖ Profit After Tax: N4.69billion in HY 2023, compared to N4.44billion in HY 2022 (6% growth year-on-year)
❖ Annualized Earnings Per Share: 156 kobo. (HY 2022: 148 kobo) Statement of Financial Position:
❖ Total Assets: N805.77billion, compared to N601.92billion as at December 2022 (34% year-to-date growth)

❖ Total Liabilities: N757.24billion, compared to N568.93billion as at December 2022 (33% year-to-date growth)
❖ Shareholders Fund: N48.54billion, an 47% year-to-date decrease relative to December 2022’s value at N32.99billion.

Looking ahead and commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say, “Our strong H1-2023 result as witnessed in our earnings growth, among other parameters, reinforces our strong start to the year 2023 amid the very challenging operating environment in the first half of the year.

Going into the second half of the year 2023, we continue to see emerging opportunities across all our business entities especially as new political dispensations settle in across the country.

We are uniquely positioned to work with all agencies of government to implement the economic development objectives in line with the policy direction of the new administration which leans heavily on the capital markets
and financial services industry.

We will navigate the undulating business landscape in the remaining half of the year by harnessing opportunities that economic reforms will present to the financial services sector towards increasing value delivery to all shareholders.”