United Capital Plc has announced its unaudited results for the period ended June 30, 2020. The results showed that gross revenue rose by 39 percent from N3.23 billion in June 2019 to N4.44 billion in June 2020. The increase came on the back of a 347.65 percent year on year increase in net interest margin as well an 85.05 percent increase in net trading income.
Net operating income rose by 45 percent to N4.1 billion at half year 2020 up from N2.82 billion same period in 2019. Profit before tax increased by 14 percent to N2.27 billion at half year 2020 as against N1.99 billion in H1 2019. Profit after tax was N1.91 billion for the period in contrast to N1.65 billion in similar period in 2019.
The noticeable increase in the company’s bottom line came as the Nigerian economy battles the rampaging coronavirus pandemic with different measures. Total assets grew by 46 percent year to date just as the total liabilities rose by 54 percent.
“The COVID-19 pandemic has lasted than envisaged and caused greater speculations of global recession and slower global recovery from the pandemic. The Nigerian economy has been greatly affected by the pandemic as seen in the increasing depreciation of the exchange rate, inflation rate and other economic indicators. As we stated at the release of our last quarter result, our business was not immune to these challenges; however, the group was able to endure the challenges- thanks to the well-articulated and diligent implementation of our plans set out last year.
With our well-articulated plans, business continuity plan in economic crisis and solid risk assessment framework we were able to deliver an increased revenue of over 37.26%, increased PBT of 14.10% and PAT increase of 15.98%. During this same period, we successfully issued our N10 billion Series 1 bond under the N30 billion Medium-Term Debt Program – the first to be issued by an investment banking firm in Nigeria – which was oversubscribed by about 24%.
“Going into the remaining half of the year, we remain assiduously committed to deliver greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time”, Peter Ashade, Group CEO, said.
United Capital’s share price closed last week with a year to date return of 12.5 percent.