PIB: Expert identifies loopholes
Despite tough global economic climate Reports PAT at N3.14bn; PBT at N3.74bn;
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United Capital Plc., a leading Pan-African financial and investment services group, has continued to show strong resilience and operation success despite the challenging global economic climate and recording an impressive 54 per cent year on year rise in its total revenue to N6.85 billion in the 2021 half-year from N4.45 billion it reported in the same period last year.
The growth in revenue was driven by a 128 per cent year on year strong growth in fee and commission income to N3.12 billion and Investment Income to N3.65 billion despite 60 per cent year-onyear decline in net trading income to N38.2 million.
In its unaudited financial statement filed to the local bourse, it shows that profit cent to N3.74 billion in the first half of 2021, compared to N2.27 billion in the first half of 2020 while the company’s profit after tax also grew 64 per cent year on year to N3.14 billion in the review period compared to N1.91 billion last year.
Meanwhile, the company’s profitability margin improved with the PBT margin gaining 3.58 percentage points to 54.57 per cent for the first half of 2021 relative to 50.99 per cent for H1 2020 as PBT increased by 65 per cent yearon-year during the period.
Similarly, the PAT margin also improved, gaining 2.81 percentage points despite a higher tax charge of 16.0 per cent for the 2021 first two quarters, relative to a charge of 15.62 per cent during the same period in 2020.
Owing to the faster growth in the company revenue, the cost-to-income ratio for the period declined by 3.58 percentage points and relative to operating expenses which grew by 43 per cent year-onyear to N3.11 billion in halfyear from N2.18 billion.
This shows a continued improvement in operational efficiency during the period. a look into the company’s financial position for the review period, its total assets improved by 44 per cent year on year to N320.23 billion from N222.75 billion last year.
This was as a result of a significant increase in cash and cash equivalents and 9 per cent growth in trade and other receivables; with the total liabilities standing at N296.68 billion with a 50 per cent year on year rise from N198.32 billion last year and was largely driven by an 82.92 per cent year to date increase in managed funds, other borrowed funds and other liabilities to N212.2 billion, N74.9 million and N7.29 million.
Peter Ashade, the group chief executive officer, United Capital plc while comment ing on the half-year performance of the company, said: “I am excited to inform our stakeholders that United Capital recorded a very impressive half-year 2021 result following a record year performance in 2020’.’
We ended the first half of the year on a very high note as reflected in our earnings growth and strong financial performance. United Capital is in a growth phase, and I must say that our strong financial performance is a testament to our unwavering commitment to increasing value creation for all our clients amid the harsh socioeconomic environment and lingering effects of the devastating pandemic. In the remaining half of the year, we will be focused on our transformation agenda by deepening our value propositions to underserved market segments especially mass affluent and mass-market clients, while driving phased automation of our business processes.”
He said that the company’s bespoke affluent segment propositions including private trusts, and wealth management solutions are curated to increase, preserve, and transfer wealth for our fast-growing affluent customer base’’