Breaking News
United Capital Grows Profit by 154% to N3.6bn in Six Months
United Capital Plc wednesday raised the hopes of its investors for another bountiful harvest as the company reported a jump of 154 per cent in profit after tax (PAT) for the half year (H1) ended June 31, 2016.
The investment banking firm had last year recorded an impressive performance and rewarded shareholders with a dividend of 35 kobo per share.
However, going by the unaudited H1 results made available to stock market operators by the NSE yesterday, shareholders should expect better performance at the end of the current financial year.
According to the results, United Capital recorded gross revenue of N3.655 billion in 2016, up by 34 per cent from N2.750 billion posted in the corresponding period of 2015. Investment income rose from N1.349 billion to N1.721 billion, while fees and commission income grew from N817 million to N980 million. Net operating income settled at N3.411 billion, up from N2.546 billion, while total revenue stood at N3.655 billion, compared with N2.750 billion in the corresponding period of 2015.
In spite of the rise in inflation, the management of the United Capital maintained a commendable cost strategy that led to a reduction in total operating expenses from N1.128 billion to N1.074 billion.
Consequently, the company ended the year with a profit before tax of N2.065 billion, indicating a growth of 47 per cent. However, the company’s bottom-line was boosted by a N1.526 billion realised from the sale of investment in an associate company to hit N3.591 billion in 2016, up from N1.408 billion in 2015.
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.
