United Capital firing from all cylinders with impressive revenue growth at 63% for Q1’21

• Records N3.12bn in total revenue
• PAT and PBT grew 68% to N1.66bn and N1.97bn respectively

Charles Abuede

United Capital Plc, a leading Pan-African financial and investment services group, reported impressive growth across key indicators during the first quarter of 2021 in the face of the challenging global climate as it recorded a 62.57 per cent year on year growth in total revenue to N3.12 billion in Q1 2021 from N1.92 billion in Q1 2020. The impressive growth reported in Q1 was on the back of a strong growth in fee and commission income which surged by 133 per cent year-on-year to N1.32 billion, investment income which grew by 28 per cent year-on-year to N1.6 billion, and net trading income which was up 137 per cent year-on-year to N188.04 million.

The first investment bank to be listed on the Nigerian Stock Exchange, in its Q1 unaudited financial statements for the period ended March 31, 2021, reported a significant growth of 67.85 per cent to N1.97 billion in profits before tax (PBT), while profit after tax (PAT) was up 67.82 per cent year on year to N1.66 billion from N990 million in the corresponding period of 2020. Also, the group’s profitability margin also improved with PBT margin gaining 2.0 percentage points to 63 per cent for Q1 2021 relative to 61 per cent for Q1 2020 as PBT increased by 68 per cent year-on-year during the period. PAT margin also improved, gaining 1.5 percentage points despite a higher tax charge of 16.0 per cent for Q1 2021, relative to a charge of 15.7 per cent during the same period in 2020.

Furthermore, United Capital’s total assets grew by 21.23 per cent to N270.04 billion year-to-date driven by a significant 241 per cent increase in cash and cash equivalents to N148.12 billion and an 11 per cent growth in trade and other receivables N31.7 billion while the total liabilities increased by 25.23 per cent to N248.4 billion owing to the growth in short term investment by 58.45 per cent and trust funds by 19.53 per cent. In aggregate, the Group’s managed funds grew by 40.05 per cent.

Peter Ashade, Group CEO, United Capital Plc, while commenting on the group’s performance, said “I am pleased to inform all stakeholders that United Capital Plc commenced the first quarter of the year from a stable position with remarkable earnings growth and strong performance across key financial parameters even as we continued to navigate the tough terrain which at the moment, points to a recovery in the domestic economy amid other improving global macroeconomic developments”.

“With our well-articulated plans and solid risk management framework, we were able to deliver increased revenue of over 63 per cent, increased PBT of 68 per cent and PAT increase of 67 per cent. This performance empowers us to adopt a positive outlook on the remaining part of the year 2021 as the operating environment improves, supported by fiscal stimulus programmes, easing of restrictions on business operations, reopening of international and domestic travels, resumption of wholesale and retail trading activities as well as the rebound in oil prices.

“We have continued to drive our strategy as we push further our market diversification and cost optimization initiatives, as well as implement, phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders,” he stated.

Discussing the result further, Ashade stressed that; “Going into the remaining quarters, we remain diligently committed to delivering greater value to our stakeholders and providing best-in-class solutions to diverse client segments by constantly reviewing our strategy in the light of global and domestic developments even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery.”