Thursday, 2nd December 2021
<To guardian.ng
Search
Breaking News:

Product diversification, others lift United Capital’s profit by N7.09b

By Helen Oji
19 October 2021   |   2:41 am
For its third quarter (Q3) 2021 operations, United Capital Plc has posted a 72 percent rise in profit to N7.09 billion from N4.12 billion achieved in the corresponding period of 2020.

For its third quarter (Q3) 2021 operations, United Capital Plc has posted a 72 percent rise in profit to N7.09 billion from N4.12 billion achieved in the corresponding period of 2020.

According to the company’s unaudited financial result for the period ended September 30, 2021, the company’s pre-tax profit rose by 72 per cent year-on-year to N7.09 billion, while total revenue and assets grew by 60 per cent and 80 per cent to N11.33 billion and N400.75 billion.

The company’s revenue was driven largely by 112 per cent year-on-year growth in fee and commission income and a 43 per cent increase in investment income amidst a low-interest-rate environment that pressures yield on fixed income instruments.

The company linked the improved performance to the N50 billion Commercial Papers (CP) issuance programme embarked upon recently.

According to the company, the issuance repositioned the firm to provide a wider range of wholesale financing solutions to its clients and complement the funding base of all business segments.

The company’s operating income however settled at N11.08 billion in 2021, compared to N6.76 billion in the comparable period in 2020, representing an uptick of 64 per cent within the period.

Its operating expenses printed at N4.24 billion in 9M 2021, representing an increase of 44 per cent when compared to N2.95 billion it posted in 2020 amidst a steep inflation rate in the country.

Total assets grew 80 per cent to N400.75 billion from N222.75 billion as of 2020 driven by 89 per cent jump in the company’s total liabilities, which settled at N373.86 billion, compared to N198.32billion as of 2020.

The company’s shareholders’ fund was N26.89 billion at the end of the period, compared to N24.43 billion in 2020, representing 10 percent growth.

On the cost-to-income, the firm said it has continued to maintain improvement in operational efficiency.

Group Chief Executive Officer of the company, Peter Ashade said:” I am pleased to inform our stakeholders that United Capital ended the third quarter of the year with another outstanding performance.

“We delivered an increased revenue of 60 per cent year-on-year, PBT growth of 72 per cent year-on-year to N7.09 billion and total asset growth of 80 per cent year-to-date.”

He pointed out that the company successfully listed three series of commercial papers worth N19.72 billion on the FMDQ Securities Exchange during the period.

In this article