United Capital Grows PAT by 53.9% to N991m in Q1 2020 Results

Must Read

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

United Capital Plc, (NSE: UCAP, Bloomberg: UCAP: NL, Financial Times: UCAP: LAG) announced its Unaudited Financial Statements for the period ended March 31, 2020.

During the period under review, the Group showed significant growth in key indicators despite the challenging global economic climate.

Total Revenue in Q1 2020 soared to N1.92bn  from N1.45bn in Q1 2019, an increase of 32% while PAT grew by 54% YOY. Total Assets grew by 31%, being well-financed by a 35% increase in Liabilities and 6% increase in Shareholder’s fund.

  • Gross Earnings grew by 32.3% to N1.9bn from N1.5bn in the previous quarter.

  • Profit before tax grew by 53.4% to N1.2bn.

  • Profit after tax grew by 53.9% to N991m.

  • Net Assets grew by 5.8% to N20.7bn from N19.6bn.

The company’s gross earnings increased to N1.9 billion from N1.5 billion in the same period of last year, while investment income decreased to N649.5 million from N771.7 million, majorly as a result of the decline in fixed deposits and investments in securities.

- Advertisement -

According to the report made available to Brand Spur, the earnings of United Capital showed that personnel expenses increased in the first three months of 2020 to N324.5 million from N246.4 million, while other operating expenses dropped to N378.2 million from N399.3 million, with total expenses at N742.6 million at Q1 2020 as against N684.4 million in Q1 2019.

The results revealed that the profit before tax stood at N1.2 billion in the period under review compared with N766.9 million in the same period of 2019.

And after a reduction of N185.1 million as tax, higher than N122.7 million in Q1 2019, United Capital was left with a profit after tax of N991.3 million as of March 31, 2020, in contrast to N644.2 million as at March 31, 2019.

Read Also:  Kwesé TV kick starts the holidays with an incredible deal

While commenting on the group’s performance the Group CEO, Mr. Peter Ashade, had this to say:

- Advertisement -

“The Year 2020 has posed a lot of challenges to the Nigerian economy – as we saw a decline in oil prices- the operating environment was also impacted negatively, with the exchange rate becoming more volatile, continued fall in rates in the money market as well as bearish sentiments in the capital market. Our business was not immune to these challenges; however, the Group was able to endure the first quarter of the year. Thanks to the well-articulated and diligent implementation of our plans set out last year, we were able to deliver a 32% year on year increase in revenue and 53% increase in PBT. This increase was generated basically from our margin on investments and the 55% YOY increase achieved on our Fees and commission income as well as a 149% growth in net trading income. Our investment income shrank this quarter due to the drop in returns in the money market.

“As we work into the coming quarters, we are constantly reviewing our strategy in light of the current global pandemic in the wake of COVID-19. As a Group, we were able to invoke our business continue framework which has worked immensely well over the past few weeks as we have been able to stay afloat with our work-force working remotely to ensure the continued operations of our business”.

Read Also:  UK-trained Nigerian lawyer wants to help SMEs succeed

Discussing the result further he stressed that; 

“In line with our initial strategy for the 2020 business year, we shall continue to push further our market diversification and cost-optimization initiatives, as well as implement, phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders”.

- Advertisement -
United Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand SpurUnited Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

United Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand SpurUnited Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand Spur

Latest News

From the app to the digital ecosystem: the new generation of Mercedes me Apps launches

Mercedes-Benz is presenting the new generation of Mercedes me Apps and its own, standardised developer platform. This sees the...

Cadbury Nigeria – Challenging Macroeconomic Environment Disrupts Momentum

Cadbury Nigeria Plc recently released its H1’20 results. According to the released results, revenue declined by 28% year-on-year in Q2’20, from N10.17bn in Q2’19...

Leading Tech Brand Baseus Announces 72-h AliExpress Super Brand Day Starting on August 10th

TOKYO, JAPAN - Media OutReach - 5 August 2020 - Baseus, a leading consumer electronics brand, announced a new promotional campaign called "Super Brand Day" on its official AliExpress store...

Top Guns Join REBEL Fighting Championship

Vivian Xia joins REBEL FC as Sponsorship Director, bringing with her a wealth of experience that includes 16 years at The Nielsen Company Ophelia Yao comes onboard as...

Kantar Health Expands National Health and Wellness Survey into South Korea and Taiwan

SEOUL, SOUTH KOREA AND TAIPEI, TAIWAN - Media OutReach - 5 August 2020 - Kantar Health, a leading global healthcare data, analytics and research provider, today announces the expansion...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -United Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand SpurUnited Capital Grows PAT by 53.9% to N991m in Q1 2020 Results - Brand Spur