Fees, Comission lift United Capital profit by 39% in first Quarter

United Capital, the Nigerian investment banking group, continues beating the odds as it sustains a growth trajectory to deliver value to stakeholders by posting a 39 percent increase in profit to N2.3 billion in the first quarter of 2022, according to BusinessDay’s findings.

The growth was driven by rise in incomes from fees and commissions, the group stated.

In its unaudited financial statement for the period ended March 31, 2022, filed to the exchange, United Capital also reported a 39 percent year-on-year increase to N2.31 billion in profit after tax (PAT) from N1.66 billion in the corresponding quarter of 2021.

The financial and investment services company grew its gross earnings to N4.21 billion, a 35 percent increase from N3.12 billion in the period under review.

“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,” said Chika Mordi, the Board Chairman.

According to United Capital, the Board of Directors reviews the Group’s performance along the business segments and resources are allocated accordingly.

The business segments include investment banking, asset management, wealth management, trustees, securities trading and consumer Finance.

The top three contributors of the profit after tax (N2.31 billion) include Asset management, trustees, securities trading which contributed N677.4 million, N588.2 million and N283.3 million respectively.

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The least contributors to the total profit for the year include consumer finance, eliminating items, investment wealth management with N76 million, N119.9 million and N198 million respectively.

Commenting on the Group’s performance, the Group Chief Executive Officer, Peter Ashade 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.”

Profit before income tax grew to N2.68 billion in March 2022 from N1.97 billion in the year ago period.

Net operating income stood at N3.5 billion in March 2022 from N3.1 billion in March 2021.

United capital increased total expenses to N1.64 billion compared to N1.14 billion in the comparable periods.

The financial and investment services company increased its fees and commission income to reach N1.87 billion, a 41.6 increase from N1.32 billion

Net investment income to reach N1.64 billion in March 2022 from N1.6 billion in March 2021.

Other income jumps to reach N517.4 million from N18.8 million in the period under review.

United Capital increased personnel expenses to N546.7 million compared to N421.2 million.

Total assets jumped 2.43 to N464 billion from N453 billion in the comparable periods.

Net cash generated by operating activities dropped to N3.4 billion compared to N215.5 in the period under review.

Net cash used in investing activities stood at N57.3 billion in March 2022 from a loss of N200.4 billion in March 2021.

Net cash used in financing activities dipped to N1.16 billion from N4.82 billion year on year loss.

The company’s earnings per share increased to N154 in March 2022 from N111 in March 2021.

United Capital Plc is a Pan-African financial and investment services group, with a mission to provide bespoke and innovative value added services to its clients.