United Capital records 53% increase in profit

United Capital Plc has posted a 53 per cent increase in profit before tax (PBT), in its recently-released unaudited results for the first quarter (Q1) period ended, March 31, 2020, against N0.77billion in Q1 2019.
   
The company’s statement of profit and loss put revenue at N1.92billion in Q1, compared to N1.45billion in Q1 2019, which represents 32 per cent year-on-year (YoY) increase.

Also Operating Income rose to N1.89billion compared to N1.35billion, a 40 per cent leap YoY.
 
Operating expenses peaked at N0.74billion compared to N0.68billion or nine per cent increase during the one year period.
 

United Capital explained that the 32 per cent total revenue year-on-year, is “on the back of the company’s 55 per cent increase in fee and commission income and 223 per cent increase in net interest margin as well as a 149 per cent growth in Net trading income.
 

Commenting on the group’s performance, the Group CEO, Peter Ashade, said: “Year 2020 has posed a lot of challenges to the Nigerian economy – as we saw decline in oil prices- the operating environment was also impacted negatively, with the exchange rate becoming more volatile, continued fall in rates in the money market as well as bearish sentiments in the capital market.
 
“Our business was not immune to these challenges; however, the Group was able to endure the first quarter of the year. Thanks to our well-articulated and diligent implementation of our plans set out last year, we were able to deliver a 32percent year on year increase in revenue and 53percent increase in PBT.

“This increase was generated basically from our margin on investments and the 55percent YOY increase achieved on our Fees and commission income as well as a 149percent growth in net trading income. Our investment income shrank this quarter due to the drop in returns in the money market.

“As we work into the coming quarters, we are constantly reviewing our strategy in light of the current global pandemic in the wake of COVID-19. As a Group, we were able to invoke our business continue framework which has worked immensely well over the past few weeks as we have been able to stay afloat with our work-force working remotely to ensure the continued operations of our business,” he said.