Product diversification, others increase United Capital profit by N 7.09b – Business – The Guardian Nigeria News – Nigeria and World News
For its operations in the third quarter (Q3) 2021, United Capital Plc recorded a 72% increase in profit to 7.09 billion naira, compared to 4.12 billion naira made in the corresponding period of 2020.
According to the company’s unaudited financial results for the period ended September 30, 2021, the company’s pre-tax profit increased 72% year-on-year to naira 7.09 billion, while revenue and total assets increased by 60% and 80 percent to 11.33 billion naira and 400.75 billion naira.
The company’s revenue is largely attributable to a 112% year-over-year growth in commission income and a 43% increase in investment income in a low interest rate environment that puts pressure on the market. return on fixed income instruments.
The company has linked the improved performance to the recently launched 50 billion naira commercial paper (CP) issuance program.
According to the company, the show repositioned the company to provide a broader range of wholesale financing solutions to its customers and complement the financing base of all business segments.
The company’s operating profit, however, was 11.08 billion naira in 2021, compared to 6.76 billion naira in the comparable period in 2020, an increase of 64% during the period. .
Its operating expenses amounted to 4.24 billion naira as of 9M 2021, which is a 44% increase from the 2.95 billion naira it posted in 2020 amid a rate of decline. high inflation in the country.
Total assets increased 80 percent to 400.75 billion naira, from 222.75 billion naira in 2020, due to an 89 percent increase in the company’s total liabilities, which fell. set at 373.86 billion naira, compared to 198.32 billion naira in 2020.
The company’s shareholders’ fund stood at 26.89 billion naira at the end of the period, up from 24.43 billion naira in 2020, a growth of 10%.
Regarding cost-to-income ratio, the company said it continues to maintain improved operational efficiency.
Company Group CEO Peter Ashade said: “I am pleased to inform our stakeholders that United Capital ended the third quarter of the year with another outstanding performance.
“We saw a 60% year-on-year increase in revenue, 72% year-on-year PBT growth to reach N 7.09 billion and total asset growth of 80% year-to-date. “
He pointed out that the company successfully listed three sets of commercial papers worth N19.72 billion on the FMDQ Securities Exchange during the period.