United Capital grows PAT 57% to N7.8bn in 2020

United Capital grows PAT 57% to N7.8bn in 2020

 

  • Proposes 70k dividend

United Capital Plc (United Capital), Nigeria’s leading investment bank and a foremost Pan-African financial and investment services group, has reported impressive numbers in its audited financial statement for the year ended 2020.

The financial report released on the Nigerian Stock Exchange (NSE) where its listed indicates a 57 per cent rise in its profit after tax (PAT) for the period to N7.8 billion compared to N4.97 billion in 2019.

The investment banking firm also saw its net operating income up by 58 per cent year-on-year from N7.90 billion in 2019 to N12.49 billion in 2020.

Highlights of the Result

Statement of Profit or Loss:

  • Year-on-Year Analysis (FY 2020 to FY 2019) reveals the following;
  • Gross Earnings: N12.87 billion in 2020, compared to N8.59 billion in 2019 (50% growth year-on-year)
  • Net Operating Income: N12.49 billion in 2020, compared to N7.90 billion in 2019 (58% growth year-on-year)
  • Operating expenses: N4.93 billion in 2020, compared to N3.64 billion in 2019 (35% growth year-on-year)
  • Profit Before Tax: N7.95 billion in 2020, compared to N4.95 billion in 2019 (61% growth year-on-year)
  • Profit After Tax: N7.81 billion in 2020, compared to N4.97 billion in 2019 (57% growth year-on-year)
  • Earnings Per Share: 130 kobo. (2019: 83 kobo)

Statement of Financial Position:

  • Total Assets: N224.75 billion, compared to N150.46 billion as at December 31 2019 (48% growth year-on-year)
  • Total Liabilities: N198.32 billion, compared to N130.88 billion as at December 31 2019 (52% growth year-on-year)
  • Shareholders Fund: N24.43 billion, a 25% increase year-on-year relative to N19.59 billion as at December 31 2019.

Commenting on the group’s performance, Peter Ashade, the group chief executive officer, expressed delight as he informed all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in Revenue, profit before tax (PBT) and profit after tax (PAT) as well as solid performance across key business parameters.

“This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges,” Ashade said.

Discussing the result further, he stressed that despite the tough operating environment, “all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021.”

The group is listed on the Nigerian Stock Exchange and is at the forefront of becoming the financial and investment role model across Africa by leveraging on innovation, technology, and specialist skills to exceed client expectations, while creating more value for all stakeholders.

United Capital Plc remains a leader in the financial and investment services space, with a mission to provide bespoke and innovative value-added services to its clients.

The group aims to transform the African continent by providing innovative and creative investment banking solutions to governments, companies and individuals.