United Capital grows profit by 146 percent to N4.7 billion

06 Oct 2016
Financial Nigeria

Summary

The sharp rise in United Capital’s profit resulted mainly from the gains the company recorded from the sale of its 50 percent stake in United Metropolitan Life Insurance to South Africa’s MMI Holdings in May this year.

Group CEO, United Capital Plc, Toyin Sanni

United Capital, a leading investment banking firm, has reported that its year-on-year after-tax profit rose by 146 percent during the 2016 third quarter ended on September 30th. The company said after-tax profit rose to N4.7 billion in Q3’16 compared with N1.9 billion reported in the corresponding period last year, according to a statement released on the Nigerian Stock Exchange on Thursday.

The sharp rise in United Capital’s profit resulted mainly from the gains the company recorded from the sale of its 50 percent stake in United Metropolitan Life Insurance to South Africa’s MMI Holdings in May this year. The company said it earned N1.526 billion from the deal. Revenues rose 38 percent to N5.1 billion in Q3’16 from N3.7 billion a year earlier due to a 431 percent increase in investment income from N491.5 million to N2.6 billion.

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.

During the period under review, United Capital said basic earnings per share rose to 78 kobo from 32 kobo. The company’s stock closed at N2.46 per share on Thursday, up 3 percent from the previous day’s close.


Other Photos/Videos