Strong risk management, business plan lift United Capital H1 2020 profit
Specifically, the bank said its profit before tax increased by 14 percent to N2.27 billion, against N1.99 billion recorded in the corresponding period in 2019, while profit after tax was N1.91 billion in contrast to N1.65 billion in similar period in the previous year.
The results also showed that gross revenue rose by 39 percent from N3.23 billion to N4.44 billion. According to the bank, the increase came on the back of a 347.65 percent year on year increase in net interest margin as well as 85.05 percent increase in net trading income.
Net operating income rose by 45 percent to N4.1 billion from N2.82 billion achieved during the same period in 2019.
The bank’s total assets appreciated by 46.03 per cent significantly on account of over 242.09 per cent increase in cash and cash equivalent holdings and 9.29 per cent increase in trade and other receivables.
The increase in the company’s bottom line came as the Nigerian economy battles the rampaging coronavirus pandemic with different measures. Total assets grew by 46 percent year to date just as the total liabilities rose by 54 percent.
The Group Chief Executive Officer of the bank, Peter Ashade said: “The COVID-19 pandemic has lasted than envisaged and caused greater speculations of global recession and slower global recovery from the pandemic. The Nigerian economy has been greatly affected by the pandemic as seen in the increasing depreciation of the exchange rate, inflation rate and other economic indicators.
“As we stated at the release of our last quarter result, our business was not immune to these challenges; however, the Group was able to endure the challenges- thanks to the well-articulated and diligent implementation of our plans set out last year.
“With our well-articulated plans, business continuity plan in economic crisis and solid risk assessment framework, we were able to deliver an increased revenue of over 37.26 per cent, increased PBT of 14.10 per cent and PAT increase of 15.98 per cent During this same period, we successfully issued our N10 billion Series 1 bond under the N30 billion Medium-Term Debt Programme with over 24 per cent oversubscription.”
“Going into the remaining half of the year, we remain assiduously committed to delivering greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time.”
Discussing the result further he said: “In line with our initial strategy for the 2020 business year, we shall continue to push further our market diversification and cost-optimization initiatives as well as implement phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders.
“Going into the remaining half of the year, we remain assiduously committed to delivering greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time,” he said.
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