United Capital grows annual profit to N6.22bn
United Capital Plc, an investment banking group, grew its profit before tax by 12 per cent to N6.22bn in the financial year 2018.
Its gross earnings rose by four per cent to N9.26bn in 2018, while profit after tax fell by 0.5 per cent to N4.34bn.
The group’s total assets increased by nine per cent to N148.7bn, while shareholders’ fund dropped by six per cent to N15.83bn.
While presenting the group’s financial results for the year 2018 at the Annual General Meeting on Thursday in Lagos, the Chairman, Mr Chika Mordi, said, “Despite the challenging operating global and local environment, we continue to strive hard to deliver on our set goals and are optimistic that we will further improve in 2019.
He noted that the performance of the financial markets was broadly bearish in 2018, saying increased local political tension, interest rate hikes by the US Fed and a spike in the US treasury yields resulted in an offshore sell-off from the Nigerian market.
He said, “United Capital made good progress in its financial performance for 2018. The group generated gross earnings of N9.3bn and PBT of N6.2bn, despite the challenging macroeconomic and operating conditions.
“This year, we switched to the IFRS 9 standards, which led to a six per cent decline in shareholders’ funds. Total assets improved from N136.5bn to N148.7bn due to growth in funds management, which is a reflection of our commitment to deliver value at all times.”
Mordi expressed confidence in the group’s ability to deliver superior returns to shareholders, saying, “We have put in place appropriate strategies to respond to possible scenarios that the year 2019 could throw at us; hence, we believe that we will continue to make progress in our quest to build Africa’s leading investment bank.
“Our staff members remain resourceful, motivated and dedicated, and we continue to attract the best talent to execute our short, medium and long-term strategic objectives. We are cognisant of the challenges inherent in the current volatile, uncertain, complex and ambiguous environment, and we will strive to maximise value creation for you, our shareholders.”
The Group Chief Executive Officer, Mr Peter Ashade, said the group started the year 2019 with high energy levels and intended to sustain the momentum throughout the year.
“We will change the narrative of financial services in Nigeria and Africa by contributing our quota in ensuring that financial and investment solutions are available to all and sundry in an accessible and simplified manner,” he added.