United Capital Half-year Profit Drops to N1.9bn

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United Capital Plc, a leading investment banking group yesterday reported a profit after tax of N1.997billion for half year ended June 30, 2017, showing a decline of 3.2 per cent compared with N2.065 billion recorded in the corresponding period of 2016.

The company’s gross earnings rose to N3.87 billion, showing a marginal increase of six per cent from N3.666 billion in the corresponding period of 2016.
Similarly, investment income grew from N1.721 billion to N2.016 billion, while total revenue rose to N3.876 billion, from N3.665 billion in 2016.

Commenting on the performance, Group Chief Executive Officer, United Capital Plc, Oluwatoyin Sanni said: ”After an impressive 2016, we understood that market expectations would rise considerably but continued to believe that the initiatives being executed across the businesses as well as the existing pipeline of work, would enable us meet those heightened expectations. We remain committed to the pursuit of our clear and consistent strategy across all businesses and will ensure we continue to deliver long term value to shareholders.

Whilst the general economic conditions in the main domestic market continue to be challenging, it has also offered an opportunity for innovation. We thank our clients for their continued trust and confidence in us as their investment banking partner and look forward to a stronger second half of the year.”

According to her, United Capital has remained committed to providing finance solutions for domestic and international investors, with a keen understanding that our business model must evolve to complement our clients’ financial objectives.
Sanni explained that while the challenges in the market may have proved disruptive to various aspects of the economy, it has also opened an avenue for the development of innovative Investment banking products/solutions for the group.

The GCEO noted that as a testament to company’s commitment to innovate and lead the development of the capital markets, United Capital Asset Management launched the United Capital Wealth for Women Fund and the United Capital Nigerian Eurobond Fund.

“These unique solutions were a direct response to the changing investment market domestically and internationally. In this same period, the firm’s investment banking division also executed a number of successful transactions, including acting as the Joint Issuing House for the FSDH N50billion Commercial Paper Series 3 and Series 4 and as well as financial adviser to United Bank for Africa Plc’s premier Eurobond of US $500 million issued at 7.75 per cent, which was 240 times over-subscribed,” she added.

Sanni assured stakeholders that United Capital would continue to expand its footprint internationally and across Africa, deploying innovative investment banking solutions to governments, companies and individuals.