United Capital’s PBT Rises by 65% to N4bn in Nine Months
By Goddy Egene
United Capital Plc, one of the Nigeria’s leading investment banking firms, has continued its impressive financial performance despite the challenging operating environment. The company, which released its nine months ended September 30, 2016, last Friday, recorded growth in all major performance indicators. Gross earnings and profit after tax (PAT) rose by 39 per cent and 66 per cent respectively.
An analysis of the results showed that gross earnings stood at N5.689 billion in 2016, up from N4.088 billion in the corresponding period of 2015. Investment income soared from N491 million to N2.612 billion, while net operating income settled at N5.132 billion compared with N3.722 billion in 2015.
In spite of the inflationary trend, the management of United Capital adopted a cost reduction strategy that led to a decline of 2.7 per cent in total expenses, reducing from N1.774 billion to N1.726 billion.
Consequently, profit before tax grew by 65 per cent to N3.962 billion in 2016 from N2.397 billon, while PAT rose from N1.910 billion to N3.170 billion.
The investment banking firm had last year recorded an impressive performance and rewarded shareholders with a dividend of 35 kobo per share.
It followed that with a highly impressive performance for the half year to June 30, 2016, growing PBT by 47 per cent.
Although there are several economic headwinds, the Group Chief Executive Officer of United Capital Plc, Mrs. Oluwatoyin Sanni had told shareholders that she was confident in company’s ability to consistently deliver value to all stakeholders in the current year.
“I have no doubt in my mind that the strategies we have put in place in light of our expectations of market scenarios in the coming year will prove effective in delivering much better results. I must thank all of you for your constant support in our task of building a leading financial services firm in Africa. I am confident that with the dedication of our resourceful staff and your unalloyed support, we will continue to delight you with superior return in every line of business we are involved,” Sanni said.
She said recently that the company has advanced its Pan- African strategy to generate revenues from beyond the shores of Nigeria by executing on key mandates, and also deepened its play in fixed income services to meet the clear needs of investors to “flee to safety.”
“We continued to play a dominant role in providing critical advisory and capital raising and trustee services to sub-sovereign and corporate issuers as our contribution to helping them navigate the stormy economic conditions,” she said.