United Capital, an African financial and investment banking group has posted its highest profit in six years in the first half of 2022 as net operating income surged.
The financial and investment services company grew its gross earnings by 33 percent to N9.11 billion in June 2022 from N6.85 billion in June 2021.
The growth in gross earnings can be attributed to investment income, fee and commission income, and net trading income which recorded a 9 percent, 24 percent, and 586 percent year-on-year increase.
Investment income stood at N3.99 billion in half-year 2022, indicating a 9 percent increase from N3.65 billion in half-year 2021.
Also, United Capital’s fee and commission income grew to N3.86 billion in half-year 2022, a 24 percent from N3.12 billion in half-year 2021.
Net trading income jumped a huge 586 percent to N262 million from N38.2 million in the period under review.
“Going into H2, we see vistas of emerging business opportunities within our operating environment and will be collaborating with diverse business leaders and stakeholders across critical economic sectors to deliver new solutions and grow all our businesses in line with our corporate strategy,” said Peter Ashade, Group Chief Executive Officer, United Capital Plc.
Read also: United Capital organises symposium to increase insurance penetration
Net operating income reached N8.11 billion in June 2022, up 19 percent from N6.81 billion in June 2021.
Operating expenses increased by 30 percent to N4.06 billion in June 2022 from N3.11 billion in June 2021. Profit after tax rose by 41 percent to N4.43 billion, the highest in six years from N3.14 billion in June 2021.
Total shareholders fund dropped 13 percent to N26.5 billion in June 2022. from N30.5 billion recorded in December 2021.
United capital’s return on equity reached 33.44 percent in half-year 2022, coming from N26.68 percent in half-year 2021.
Price-earnings ratio stood at 8.62 in June 2022 from 5.92 in June 2021. Profit margin rose to 48.69 percent from N45.84 percent in the period under review.
Cash and cash equivalents which shows the value of a company’s assets that are cash or can be converted into cash immediately stood at N224.5 billion in June 2022, a whooping318 percent from N53.6 billion in December 2021.
Personnel expenses climbed 55 percent to N1.09 billion, from N709.5 million in the year-ago period. Other operating expenses jumped 31 percent to N1.8 billion in June 2022 from N1.37 billion in June 2021.
Borrowed funds rose to N88.5 billion in June 2022, 11 percent from N79.7 billion in December 2021. Income tax expense grew 35 percent to N807.8 billion in half-year 2022 from N598.45 billion in half-year 2021.
Total assets jumped to N531.8 billion in June 2022, 17 percent from N453.6 billion in December 2021.
United Capital Plc is a financial services institution in Nigeria providing products and services for investment banking, asset management, trusteeship, securities trading, and insurance.
