United Capital Plc has announced a stellar performance for the first quarter of 2025, marked by a substantial surge in revenue and profitability. The company’s unaudited consolidated and separate financial statements reveal a remarkable 113% year-on-year increase in revenue, reaching N13.1 billion compared to N6.1 billion in the corresponding period of 2024. This impressive growth underscores the company’s successful strategic initiatives and its ability to capitalize on favorable market conditions. The surge in revenue has been primarily attributed to the robust performance of investment income and fee and commission income, both of which more than doubled compared to the previous year. This signifies the effectiveness of United Capital’s investment strategies and its growing client base. The company’s diversified income streams have contributed significantly to its overall financial strength.
A detailed analysis of the financial results reveals that investment income soared to N6.4 billion in Q1 2025, a significant increase from N1.08 billion in the same period of 2024. This remarkable growth reflects the success of the company’s investment portfolio and its adept management of market opportunities. Similarly, fee and commission income witnessed a substantial rise, reaching N4.5 billion compared to N2.6 billion in Q1 2024, indicating increased client activity and the company’s ability to attract and retain clients. Furthermore, net trading income also contributed to the overall revenue growth, climbing to N1.5 billion from N632 million in the previous year. This indicates the effectiveness of the company’s trading strategies and its skillful navigation of market dynamics.
The strong revenue growth translated into a significant improvement in profitability. Net operating income for the first quarter of 2025 reached N12.4 billion, a substantial leap from N4.3 billion in Q1 2024. This impressive growth demonstrates the company’s operational efficiency and its ability to control costs while maximizing revenue generation. While operating expenses increased to N5.1 billion from N2.1 billion, reflecting increased business activity and investments in growth initiatives, the company’s profit after tax still witnessed a robust 64% increase, reaching N5.9 billion compared to N3.6 billion in the same period last year. This underlines the company’s ability to manage expenses effectively while maintaining a healthy profit margin.
Beyond its core operations, United Capital also benefited from significant non-cash gains, further bolstering its financial position. Other comprehensive income for the period surged to N31.1 billion from N19.3 billion, primarily driven by fair value gains on investments in equity instruments measured at fair value through other comprehensive income (FVTOCI). This reflects the company’s astute investment decisions and its ability to capitalize on market opportunities. As a result of the strong performance in both operating and non-operating income, the total comprehensive income for Q1 2025 reached an impressive N37 billion, a substantial increase from N22.9 billion in the previous year.
The company’s robust financial performance is reflected in its key financial metrics. Earnings per share (annualized) rose to 131 kobo in Q1 2025, compared to 80 kobo in the corresponding period of 2024, demonstrating increased shareholder value. Total assets also witnessed growth, reaching N1.72 trillion as of March 31, 2025, slightly up from N1.70 trillion at the end of December 2024. This growth was primarily fueled by a rise in investment securities and an increased stake in associates, further solidifying the company’s financial strength. On the funding side, United Capital maintains a healthy capital position, with Tier 1 capital at N46.1 billion and Tier 2 capital at N497.2 billion, bringing total regulatory capital to N543.3 billion.
The company’s balance sheet reflects a robust capital structure and strong liquidity. While borrowed funds remain significant at N381.9 billion, this is balanced by a substantial increase in managed funds, which rose to N1.02 trillion from N846.6 billion as of December 2024. This growth in managed funds underscores the increasing trust and confidence placed in United Capital by its clients. Furthermore, shareholders’ funds have also grown significantly, reaching N161.5 billion from N133.5 billion at the end of 2024, highlighting the company’s ability to generate strong earnings and enhance shareholder value. The positive growth in shareholders’ funds also reflects the appreciation in investment values, further reinforcing the effectiveness of the company’s investment strategies. Additionally, the United Capital Infrastructure Fund announced a substantial dividend distribution of N1.98 billion to its unitholders for the year ended 2024, further demonstrating the company’s commitment to delivering returns to its investors.
