United Capital’s Profit Before Tax soared to N7.95 billion in 2020 from N4.95 billion in 2019, indicating a 61 per cent growth year-on-year,
According to its December 31st 2020 year ended statement, it’s Profit After Tax increased to N7.81 billion in 2020, compared to N4.97 billion in 2019 a 57 per cent growth year-on-year.
Year-on-Year Analysis (FY 2020 to FY 2019) reveals that its Gross Earnings climbed to N12.87 billion in 2020, compared to N8.59 billion in 2019, 50 per cent growth year-
on-year.
The company reported a Net Operating Income of N12.49 billion in 2020, compared to N7.90 billion in 2019 (58 per cent growth
year-on-year). According to its 2020 Financials, its Operating expenses stands at N4.93 billion in 2020, compared to N3.64 billion in 2019, 35 per cent growth year-on-year.
The company also said that its Earnings Per Share is at 130 Kobo, while it was 83 Kobo in 2019.
Its total Total Assets rose to N224.75 billion, up from N150.46 billion, indicating a 48 per cent growth year on year. United Capital Total Liabilities is at N198.32 billion, compared to N130.88 billion as at December 31 2019, 52 per cent growth year-on-year.
According to the statement, Shareholders Fund surged to N24.43 billion, a 25 per cent increase year-on-year relative to N19.59 billion as at December 31 2019.
“United Capital Plc, (NSE: UCAP, Bloomberg: UCAP:NL, Financial Times: UCAP:LAG) announced its Audited Financial Statements for the year ended December 31, 2020. The Group reported impressive growth across key indicators during the year under review despite the challenging global climate. Total Revenue in FY 2020 grew 50 per cent to N12.87bn from N8.59bn in FY 2019, Profits before tax recorded a significant growth of 61 per cent , while PAT was up 57 per cent year-on-year. An increase of 48 per cent was recorded in Total Assets, being well financed by a 52 per cent increase in Liabilities, while Shareholders Fund grew 25 per cent on the back of a strong 29 per cent growth in retained earnings.”
Comparing FY 2020 with FY 2019, the following are worthy of note: − Total Revenue: United Capital’s total revenue increased by an impressive 50 per cent YoY on the back of a strong growth in Fee and Commission income (+77 per cent YoY), Investment Income (+42 per cent YoY), and net trading income which was up 453 per cent YoY. Cost-to-Income ratio: There was improved operational efficiency during the period as cost-
to-income ratio declined by 4.13 percentage points, largely attributable to the faster growth in revenue (+50 per cent YoY) relative to operating expenses (+35 per cent YoY). Of note however, there was a sharp 513% increase in impairment allowance as a result of a notable 54% year-on-year increase in financial assets.
It’s PBT Margin: United Capital’s Profitability margin also improved with PBT margin gaining 4.13 percentage points to 62% for FY 2020 relative to 58 per cent for FY 2019 as PBT expanded by 61% during the period. While it’s PAT Margin: PAT margin also improved, up 2.79 percentage points to 61 per cent , despite to a tax charge of 2 per cent for 2020 relative to a tax credit of N23.7 million in 2019.
On its Total Assets, it grew by 48% YoY largely on account of a significant 54 per cent YoY increase in investment in financial assets and a 44% growth in the cash and cash equivalents line. And it’s Total Liabilities recorded a 60 per growth in managed funds and 43 per cent increase in other borrowed funds saw total liabilities rose by 52% YoY.
On Shareholder’s wealth improved during the period, up 25 per cent YoY driven by the strong 29 per cent growth in retained earnings.
The company’s Proposed Dividend is at a dividend of 70k per share, amounting to a total of N4.2billion dividend to be paid to shareholders upon approval of members at the AGM. The dividend is payable to shareholders whose names appear on the Register of Members
at the close of business on March 5, 2021.
While commenting on the group’s performance the Group CEO, Mr. Peter Ashade, had this to say:“I am pleased to inform all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in Revenue, PBT and PAT and solid performance across key business parameters.
This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough
terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.”
Discussing the result further he stressed that; “Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the
broader financial system as the domestic economy continues on the path to recovery in the year 2021.”
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