Toyin Sanni says United Capital looks to stronger H2 2017

12 Jul 2017
Financial Nigeria


United Capital said after-tax profit fell by 3 percent to N1.997 billion in Q1 2017.

Oluwatoyin Sanni, Group CEO, United Capital

United Capital, a leading investment banking firm in Nigeria, has reported that its 2017 half-year profit rose by 6 percent despite the slowdown in economic activities over the last 18 months.

The company said gross earnings rose to N3.88 billion compared with N3.66 billion in a similar period last year. The revenue growth was driven mainly by a 17 percent increase in investment income during the period under review.

However, United Capital said after-tax profit fell by 3 percent to N1.997 billion owing to an increase in operating and personnel expenses.

“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,” said Oluwatoyin Sanni, Group CEO at United Capital. “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.”

Amidst the challenging operating environment in the 2017 half-year, United Capital said its investment banking division executed some successful transactions. The company said it acted as the joint issuing house for the FSDH Group’s N50 billion commercial paper well as financial adviser to UBA’s $500 million Eurobond.

United Capital said total assets fell 7 percent to N149.16 billion as against N160.69 billion as of December 2016. Basic earnings per share fell to 33 kobo per share from 60 kobo per share a year earlier.

“Whilst the general economic conditions in the main domestic market continue to be challenging, it has also offered an opportunity for innovation,” Sanni said. “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.”

United Capital – formerly UBA Capital – was spun off from the United Bank of Africa (UBA) in 2011 after the Central Bank of Nigeria directed banks to either divest from non-core banking subsidiaries or form holding companies to house such subsidiaries. The company rebranded to United Capital in 2015, offering four main services: investment banking, asset management, trusteeship, and securities.

United Capital’s stock fell 1.79 percent to N3.29 per share as of 12.09 pm at the Lagos bourse on Wednesday.

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