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United Capital Reports 11% Drop in Earnings in Q3, 2019

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  • United Capital Reports 11% Drop in Earnings in Q3, 2019

United Capital Plc, one of Nigeria’s leading investment banks, reported 11 percent decline in gross earnings in the period ended September 30, 2019.

In the financial results, released through the Nigerian Stock Exchange, gross earnings declined from N5.97 billion recorded in the same period of 2018 to N5.32 billion in the third quarter of 2019.

The investment bank realised N2.41 billion as investment income, a 9.3 percent decline from the N2.66 billion achieved in the third quarter of 2018.

Fees and commission income also declined by 35.8 percent from N121.3 million to N77.9 million while net interest margin dipped by 28.86 percent from N578.6 million to N411.6 million in the third quarter of 2019.

Accordingly, net operating income posted in the third quarter of 2019 declined from N4.84 billion to N4.29 billion. A decline of 11.36 percent.

Also, profit before tax drop 10.11 percent from N3.66 billion filed in the same quarter of 2018 to N3.29 billion in the third quarter of 2019. While profit after tax dipped 12.34 percent from N3.082 billion to N2.7 billion.

The company’s CEO, Peter Ashade, attributed the difference in performance to the challenging business environment.

He said: “While the business environment in 2019 has been quite challenging, compared to what was obtainable in 2018, united Capital Plc Group has been able to consistently deliver on improvement in its numbers as evidenced in the growth in revenue. Profit before taxation and profit after taxation over the three quarters of 2019. This increase was driven majorly by the growth in revenue to the group from advisory business which has seen a CAGR of about 19 percent considering the first three quarters of the year and we also expect this to grow further in view of the various strategic initiatives up our sleeves. More so, revenue from other line items are showing signs of improvement save for revenue from investment income which is made up of income from fixed deposit and investment securities, given the persistent decline in interest rate this year.”

The bank’s earnings per share were flat at ₦0.18 in the third quarter of 2019, the same as the corresponding period of 2018.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira

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CBN Injects $11.5bn Into the Economy in the First Quarter

The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.

According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.

A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.

The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.

Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.

But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.

Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”

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DSS Arrests EFCC, Acting Chairman, Magu

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Dss Arrests Ibrahim Magu

DSS Arrested Magu, the Acting Chairman of EFCC

The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.

The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.

The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.

But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.

This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.

The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.

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