United Capital Records N7.9 Billion Profit For 2020 Full Year … Shareholders To Get 70 Kobo Dividend

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PETER ASHADE

United Capital Plc, has recorded positive results for the year ended December 30, 2020. The company recorded revenue of N12.874 billion in 2020, showing a growth of 50 per cent from N8.592 billion posted in the 2019.

Based on the impressive performance, the directors have proposed a dividend of 70 kobo per share, amounting to a total of N4.2 billion dividend to shareholders, compared to 50 kobo paid the previous year.

The revenue growth was achieved on the back of a strong growth in fee and commission income (+77 per cent), investment income (+42 per cent) and net trading income which was up 453 per cent.

Profit before tax jumped by 61 per cent to N7.95 billion (PBT), compared to N4.95 billion in 2019, while profit after tax (PAT) stood at N7.81 billion, showing an increase of 57 per cent above the N4.97 billion in 2019.

PBT margin gained 4.13 percentage points to 62 per cent in 2020, relative to 58 per cent in 2019.Similarly, PAT margin also improved by 2.79 percentage points to 61 per cent, despite to a tax charge of 2.0 per cent in 2020 relative to a tax credit of N23.7 million in 2019.

United Capital Plc’s total assets grew by 48 per cent to N224.75 billion in 2020 from N150.46 billion in 2019 largely on account of a significant 54 per cent increase in investment in financial assets and a 44 per cent growth in the cash and cash equivalents line.

Commenting on the performance, the Group Chief Executive Officer, Mr. Peter Ashade, said: “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.”

According to him, the performance has empowered them to adopt a more positive outlook for the year 2021 as they navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.

“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,” Ashade said.

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