United Capital, a Pan-African financial and investment services group, has reported substantial growth in its financial performance for the third quarter of 2024. The company’s gross earnings surged by 61 percent, reaching N28.17 billion, up from N17.51 billion in the same period of the previous year. This impressive growth in earnings is complemented by a significant increase in profitability, with profit before tax climbing by 93 percent to N18.73 billion, and profit after tax growing 89 percent to N15.98 billion. These results were outlined in the company’s unaudited financial statements submitted to the Nigerian Exchange Limited.
The leadership at United Capital, represented by Group Chief Executive Officer Mr. Peter Ashade, expressed confidence in the organization’s performance, especially amid the challenging business landscape characterized by rising inflation and volatile currency exchange rates. Ashade attributed the company’s remarkable results to its resilient business model, robust risk management strategies, and effective execution of planned initiatives. He highlighted that the firm’s shareholder value also experienced a positive trajectory, increasing by 27 percent from N90.71 billion to N115.03 billion during the reporting period.
A notable achievement during the third quarter was United Capital’s leadership in the issuance of Nigeria’s first-ever domestic FGN US Dollar Bond, which raised an impressive sum exceeding $900 million, achieving a remarkable subscription rate of 180 percent. This has signified a landmark event for the company and illustrated its capacity to spearhead innovative financial solutions in Nigeria and potentially across Africa. Additionally, in line with their business expansion strategy, United Capital launched UCee Microfinance Bank, marking its seventh subsidiary and further diversifying its service offerings.
As the end of the year approaches, Ashade emphasized United Capital’s commitment to sustaining its growth trajectory and focusing on maximizing shareholder value. He reiterated the company’s vision of becoming the leading investment and finance hub in Africa, emphasizing innovation and technology deployment as essential elements to surpass client expectations. This commitment indicates a forward-looking strategy aimed at harnessing new opportunities while navigating the uncertainties of the current economic environment.
The growth in gross earnings was primarily driven by a substantial rise in various income streams. Fee and commission income showed an 83 percent year-on-year increase, while net trading income skyrocketed by 154 percent, and other income surged by an extraordinary 564 percent. This diversification in income sources reflects United Capital’s adaptability and effectiveness in capitalizing on market conditions, leading to a remarkable overall financial performance.
Furthermore, United Capital reported a 36 percent rise in total assets, which reached N1.26 trillion as of September 2024, compared to N931.95 billion in December 2023. This growth is attributed significantly to a 199 percent increase in cash and cash equivalents. Meanwhile, total liabilities also experienced growth, rising by 37 percent to N1.15 trillion, partly driven by a 28 percent increase in managed funds and a 59 percent growth in borrowed funds. These figures collectively paint a picture of a dynamic and evolving institution prepared to navigate the complexities of the financial landscape while striving for sustainable growth and value creation.
