United Capital’s full-year revenue hits N46bn, highest in eight years

The revenue of United Capital Plc, a financial and investment services company in Nigeria, has surged to the highest in at least eight years, data compiled by BusinessDay shows.

According to the company’s latest financial statement, its revenue rose by 70.9 percent to N45.8 billion last year from N26.8 billion in 2022 on the back of N21.4 billion reported in its investment banking earnings.

Read also: United Capital Asset Management urges collaboration to boost financial inclusion

The company, which offers investment banking, financial advisory, trusteeship, and fund management, among other financial services, reported total expenses of N29.2 billion in 2023, up from N13.7 billion in 2022.

Despite the challenging economic environment, United Capital recorded an 18.7 percent growth in its after-tax profit, reaching N11.4 billion from N9.6 billion in 2022.

The major contributor to profit was net investment income of N76.4 billion during the review period. However, a significant portion of this income was offset by high-interest expenses on managed funds and other borrowings, amounting to N67.9 billion, totaling the company’s net investment income to N8.5 billion.

Further analysis of the company’s statement showed that its fees and commission income declined to N8 billion from N8.1 billion. However, its trading income increased to N3.9 billion.

Exchange gains, interest on staff loans, and gains on disposal of the company’s property, plant, and equipment boosted its gains on other income by 876 percent to N24.4 billion last year from N2.4 billion in 2022.

The firm also earned N55.3 billion in other comprehensive income, primarily from fair value gains on investments in equity and debt instruments.

This contributed to a total comprehensive income of N66.7 billion, an increase from N11.4 billion.

Net cash generated by operating activities amounted to N139.9 billion, net cash generated by investing activities was N240.5 billion, and net cash used in financing activities amounted to N89.6 billion.

The company’s cash and cash equivalents amounted to N144.4 billion.

It ventured into consumer finance after obtaining a license from the Central Bank of Nigeria to set up a microfinance bank, allowing it to expand its business activities and potential earnings even further.