United Capital reports strong earnings growth as interest income soars

20 Apr 2017
Financial Nigeria


The company's gross earnings rose 14 per cent to N2.11 billion in the first quarter of 2017.

Oluwatoyin Sanni, Group CEO, United Capital Plc

United Capital, a leading investment banking firm, has reported strong earnings growth for the first quarter of 2017 due mainly to improved income from interest and investments. The company said gross earnings rose 14 per cent to N2.11 billion as against N1.86 billion in the same quarter of last year.

The revenue growth was supported by a stratospheric rise in other interest income from N186,000 in Q1 2016 to N157.55 million in Q1 2017.

Investment income from fixed deposits and securities also grew during the quarter under review. However, fees and commission income from financial advisory fees and other charges declined to N407.81 million compared with N550.89 million a year earlier.

United Capital said after-tax profit rose 3 per cent to N1.17 billion from N1.14 billion notwithstanding a 58 per cent increase in total expenses. A slight decline in income tax expense was also supportive of profit growth.

Owing to a significant increase in cash and financial assets, United Capital said total assets rose 5 per cent to N168.38 billion as against N160.69 billion as of December 2016. Basic earnings per share rose to 20 kobo per share from 19 kobo per share a year earlier.

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 3.45 per cent to N2.8 per share as of 12.03pm at the Lagos bourse on Thursday.

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