Agusto & Co Upgrades United Capital Credit Rating to AGoddy Egene

United Capital Plc, one of Africa’s leading investment banking groups, has received an ‘A-’ Credit Rating from Pan African Credit Rating Agency, Agusto & Co, an upgrade from the firm’s ‘BBB+’ rating the previous year (2015).

According to the report, United Capital’s asset quality was categorised as ‘good’ with 27 per cent of its assets invested in low risk FGN instruments and 54 per cent held in investment grade quality short term and fixed instruments as at 31st December 2016. The rating was further supported by the company’s capable and experienced management team, extensive network access, good asset quality, very good profitability and good liquidity and funding profile.

The report goes on to further support the rating with United Capital’s 2016 gross earnings of N9 billion compared to N6.2 billion in 2015. The income growth was driven by increased investment income with low risk Federal Government of Nigeria instruments offering considerably decent yields. Fees and commission income also witnessed an uptick on the back of the company’s continued strong market share in the debt capital market.

Other highlights of the reports are: United Capital’s adjusted capital to risk weighed assets ratio stood at 20 per cent, better than the benchmark; an improved cost to income ratio of 29.3 per cent due to increased income and a successful staff optimization programme; solid corporate governance framework includes a centralized and shared risk management system with various committees responsible for determining the risk objectives and strategies.

Commenting on the rating, Group Chief Executive Officer of United Capital, Oluwatoyin Sanni said: “We are pleased to receive our new Credit Rating of ‘A-’ from Agusto & Co, which is a step higher than the ‘BBB+’ rating the previous year. It is a testament of not only our investment banking capabilities but of healthy assets quality, sound risk management and high corporate governance within our organization. These are critical elements in building investor confidence domestically and internationally.”

United Capital prides itself on delivering superior investment banking solutions to corporate, government and individual clients. The group structure operates four businesses - Investment Banking, Asset Management, Trusteeship and Securities Trading.

The company exists to empower Africans in the pursuit of their goals as individuals, companies, and governments. Despite economic challenges faced by domestic clients in recent times, United Capital’s investment banking solutions have ensured that clients achieve their financial objectives.