United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020
February 23, 2021676 views0 comments
By Charles Abuede
- Net Operating Income: N12.49bn in 2020; N7.90bn in 2019
- Operating expenses: N4.93bn in 2020; N3.64bn in 2019
- Profit After Tax: N7.81bn in 2020; N4.97bn in 2019
After recording significant gains across key indicators in its third quarter of 2020 result, United Capital Plc has reported an impressive 50 per cent year-on-year growth in its total revenue to N12.87 billion in the full year audited financial statement for 2020, despite the challenging global climate.
The revenue growth is 50 per cent higher than the N8.59 billion recorded in the full year 2019 and it is as a result of a strong year-on-year growth in fee and commission income (+77% ), investment income (+42% ), and net trading income, which was up by 453 per cent.
The company, in its audited financial statements for the year ended December 31, 2020 filed with the Nigerian Stock Exchange (NSE) highlighted it recorded a significant 61 per cent year on year growth in its profits before tax to N7.95 billion from N4.95 billion in 2019 while the profit after tax surged by 57 per cent year on year to N7.81 billion from N4.97 billion in 2019.
Also, there was an increase of 48 per cent to N224.75 billion in total assets, being well-financed by a 52 per cent increase in total liabilities at N198.32 billion, while shareholders fund grew 25 per cent to N24.43 billion on the back of a strong 29 per cent growth in retained earnings during the period.
Peter Ashade, chief executive officer, commenting on the group’s performance stated that despite the tough operating environment in 2020, the group is positive, navigating through the tough terrain posed by the pandemic and the severe economic challenge.
“I am pleased to inform all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in revenue, PBT and PAT and solid performance across key business parameters. This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges,” Ashade said.
He said that despite the tough operating environment, all stakeholder groups can be assured of the company’s commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as it works with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in 2021.
Meanwhile, United Capital, with an attractive yield in the market, also maintains a strong and a positive recommendation from securities experts and has over time, shown strong performance with sustained growth and capability to navigate the current economic challenges.