Tuesday, February 22, 2021 / 05:10 PM / NSE /Header Image Credit: United Capital
Capital Plc released its
2020 Audited results for the period ended December 31st, 2020.
- Gross Earnings grew by 50% to N12.9bn from N8.6bn in
the previous quarter.
- Profit before tax grew by 61% to N7.9bn.
- Profit after tax grew by 57% to N7.8bn.
- Net Assets grew by 25% from N19.6bn to N24.4bn.
Capital Plc IR Page in Proshare
Capital Reports an
Impressive 57% Growth in PAT
United Capital Plc
("United Capital" or "The Group"), Nigeria's leading investment bank and a
foremost Pan-African financial and investment services group, announced its
Audited Financial Statements for the period ended December 31, 2020 on February
22nd, 2021, showing a Revenue of N12.87Billion, and Profit Before Tax of
N7.95Billion while delivering an Earnings Per Share of 130 Kobo.
United Capital Plc remains
a leader in the financial and investment services space, with a mission to
provide bespoke and innovative value-added services to its clients. The group
aims to transform the African continent by providing innovative and creative
investment banking solutions to governments, companies and individuals.
The group is listed on the
Nigerian Stock Exchange and is at the forefront of becoming the financial and
investment role model across Africa by leveraging on innovation, technology,
and specialist skills to exceed client expectations, while creating more value
for all stakeholders.
Some of the highlights
worthy of note from the just released result include:
of the Result
Statement of Profit
(FY 2020 to FY 2019) reveals the following;
- Gross Earnings: N12.87 billion
in 2020, compared to N8.59 billion in 2019 (50% growth year-on-year)
- Net Operating Income: N12.49
billion in 2020, compared to N7.90 billion in 2019 (58% growth
- Operating expenses: N4.93
billion in 2020, compared to N3.64 billion in 2019 (35% growth
- Profit Before Tax: N7.95
billion in 2020, compared to N4.95 billion in 2019 (61% growth year-on-year)
- Profit After Tax: N7.81 billion
in 2020, compared to N4.97 billion in 2019 (57% growth year-on-year)
- Earnings Per Share: 130 kobo.
(2019: 83 kobo)
- Total Assets: N224.75 billion,
compared to N150.46 billion as at December 31 2019 (48% growth
- Total Liabilities: N198.32 billion,
compared to N130.88 billion as at December 31 2019 (52% growth
- Shareholders Fund: N24.43
billion, a 25% increase year-on-year relative to N19.59 billion as at
December 31 2019.
Comparing FY 2020 with FY
2019, the following are worthy of note:
- Total Revenue: United
Capital's total revenue increased by an impressive 50% YoY on the back of a
strong growth in Fee and Commission income (+77% YoY), Investment Income (+42%
YoY), and net trading income which was up 453% YoY.
- Cost-to-Income ratio:
There was improved operational efficiency during the period as cost-to-income
ratio declined by 4.13 percentage points, largely attributable to the faster
growth in revenue (+50% YoY) relative to operating expenses (+35%YoY). Of note
however, there was a sharp 513% increase in impairment allowance as a result of
a notable 54% year-on-year increase in financial assets.
- PBT Margin: United
Capital's Profitability margin also improved with PBT margin gaining 4.13
percentage points to 62% for FY 2020 relative to 58% for FY 2019 as PBT
expanded by 61% during the period.
- PAT Margin: PAT margin
also improved, up 2.79 percentage points to 61%, despite to a tax charge of 2%
for 2020 relative to a tax credit of N23.7 million in 2019.
- Total Assets: Total
Assets grew by 48% YoY largely on account of a significant 54% YoY increase in
investment in financial assets and a 44% growth in the cash and cash
- Total Liabilities: A 60%
growth in managed funds and 43% increase in other borrowed funds saw total
liabilities rise by 52% YoY.
- Shareholders' Fund:
Shareholder's wealth improved during the period, up 25% YoY driven by the
strong 29% growth in retained earnings.
- Proposed Dividend: The
Directors proposed a dividend of 70k per share, amounting to a total of
N4.2billion dividend to be paid to shareholders upon approval of members at the
AGM. The dividend is payable to shareholders whose names appear on the Register
of Members at the close of business on March 5, 2021.
While commenting on the
group's performance the Group CEO, Mr. Peter Ashade, had this to say:
"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
Discussing the result
further he stressed that;
"Despite the tough
operating environment, all stakeholder groups can be assured of our commitment
to providing best-in-class solutions to diverse client segments and delivering
superior returns to shareholders even as we work with regulatory authorities to
strengthen the broader financial system as the domestic economy continues on
the path to recovery in the year 2021."
1. UCAP Notifies of
Board Meeting Resolutions...
2. UCAP Notifies
of Dealing in 0.5m Volume of Shares by Emmanuel Nnorom Vine Foods...
3. UCAP Notifies
of Dealing in 1.3m Volume of Shares by Peter Ashade Artol Investm...
4. UCAP Notifies
of Dealing in 1.1m Volume of Shares by Shedrack Onakpoma...
5. UCAP Notifies
of Dealing in 1m Volume of Shares by Peter Ashade...
6. UCAP Notifies
of Dealing in 0.005m Volume of Shares by Adim Jibunoh...
7. UCAP Appoints
Mr. Dipo Fatokun and Ms. Sutura Bello as Non-Executive Directors...
8. UCAP Notifies
of Dealing in 0.1m Volume of Shares by Shedrack Andrew Onakpoma...
9. UCAP Notifies of Dealing in 0.02m
Volume of Shares by Jibunoh Renwick...