Seven highlights from United Capital’s nine-month financials

United Capital, a pan-African financial services institution, recorded an 89 percent growth in after-tax profit to N15.98 billion in nine months of 2024 from N8.47 billion reported in the same period of 2023. Gross earnings surged to N28.2 billion from N17.5 billion in the same period of 2023.

Further analysis reveals that the growth in gross earnings was largely driven by 564 percent growth in other income, 154 percent growth in net trading income, and 83 percent growth in fee and commission income.

“United Capital Group recorded an impressive performance in Q3 2024 despite the challenging and uncertain business environment characterised by rising inflationary trend, volatile currency exchange rate amid the fast-changing macroeconomic landscape,” said Peter Ashade, group chief executive officer of United Capital.

“Our performance is a testament to the resilience of our business model, strong risk management culture and effective execution of our well-crafted strategies,” Ashade said.

“In September, we successfully led the historic issuance of Nigeria’s first-ever Domestic FGN US Dollar Bond, raising over $900 million and achieving an outstanding 180 percent subscription rate.

“Through our focused business development initiative, we launched UCee Microfinance Bank making the business our seventh subsidiary. As we proceed into the last quarter of the year, we are determined to sustain this performance with focus on delivering superior value to our shareholders,” he noted.

“We remain committed to our vision of being the leading investment and finance hub across Africa, deploying innovation and technology to exceed client expectations. Finally, I would like to sincerely appreciate our board, shareholders, customers and staff for their unwavering support and strong dedication.”

Here are seven highlights from United Capital’s financial books:

After-tax profit – 89% growth

United Capital’s after-tax profit grew 89 percent to N15.9 billion in the nine months of 2024 from N8.47 billion in the same period of 2023.

“During the period under review, profit before tax grew by 93 percent year-on-year to N18.73 billion while profit after tax increased by 89 percent year-on-year to N15.98 billion driven by 61 percent growth in gross earnings against 35 percent growth in total expenses,” the firm said in a statement.

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Gross earnings increased to N28.2bn

United Capital’s gross earnings rose to N28.2 billion in the nine months of 2024 from N17.5 billion in the similar period of 2023.

“United Capital’s gross earnings grew by 61 percent year-on-year to N28.17 billion in September 2024 compared to N17.51 billion in September 2023 largely driven by growth in Fee and Commission income (83 percent year-on-year), Net trading income (154 percent year-on-year) and other income (564 percent year-on-year),” the firm stated.

Operating expenses grew 35%

The firm’s operating expenses increased to N11.14 billion in the nine months of 2024 from N8.26 billion in the same period of 2023.

Total Assets

United Capital’s total assets rose by 36 percent year-to-date to N1.26 trillion in September 2024 compared to N931.95 billion in December 2023.

The firm said in a statement that the growth was majorly driven 199 percent growth in cash and cash equivalents during the period.

Total Liabilities Surged to N1.15trn

The company’s total liabilities increased by 37 percent year-to-date to N1.15 trillion in September 2024 compared to N841.23 billion in December 2023 largely attributable to 28 percent year-to-date growth in managed funds and 59 percent year-to-date growth in borrowed funds.

Shareholders’ Fund rose to N115bn

United Capital shareholders’ funds grew by 27 percent year-to-date to N115.03 billion in September 2024, compared to N90.71 billion in December 2023, majorly driven by 44 percent year-to-date growth in fair value reserve.

Fees and commission income grew to N10.5bn

Fees and commission income increased to N10.5 billion from N5.7 billion, and other income rose to N6.3 billion from N941.5 million, driven by exchange gains of N4.9 billion in the period under review from N154.7 million.