United Capital PLC (Nigeria) – PBT up 40% to N5.24 billion in HY22

By Published On: July 19th, 2022Categories: Corporate announcement, Earnings
United Capital Plc 2022 Interim Results For The Half Year

United Capital PLC (UBCAP.ng) HY2022 Interim Report

LAGOS, NIGERIA – July 18, 2022 – United Capital Plc, (NGX: UCAP, Bloomberg: UCAP:NL, Financial Times: UCAP: LAG) has announced its Unaudited Financial Results for the period ended June 30, 2022. Gross Earnings was up by 33% year-on-year to N9.11billion,PBT grew 40% year-on-year to N5.24billion, and PAT rose by 41% year-on-year to N4.44 billion.

Speaking on the unaudited financial results, The Group Chief Executive Officer, Mr. Peter Ashade stated:

“United Capital is in a stable growth phase amid the challenging operating terrain in 2022. We expect to navigate the undulating business landscape in the remaining half of the year towards increasing value delivery to all stakeholders.

Looking ahead and commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say;

“Going into H2, we see vistas of emerging business opportunities within our operating environment and will be collaborating with diverse business leaders and stakeholders across critical economic sectors to deliver new solutions and grow all our businesses in line with our corporate strategy

Our impressive H1-2022 result as witnessed in our earnings growth, among other parameters, reinforces our strong start to the year 2022. This uniquely positions the organization to increasing deliver shared prosperity to all stakeholders”

KEY PERFORMANCE HIGHLIGHTS

Income Statement

  • Gross Earnings: N9.11billion in HY 2022, compared to N6.85billion in HY 2021 (33% growth year-on-year)
  • Net Operating Income: N8.11billion in HY 2022, compared to N6.81billion in HY 2021 (19% growth year-on-year)
  • Operating expenses: N4.06billion in HY 2022, compared to N3.11billion in HY 2021 (30% growth year-on-year)
  • Profit Before Tax: N5.24billion in HY 2022, compared to N N3.74billion in HY 2021 (40% growth year-on-year)
  • Profit After Tax: N4.44billion in HY 2022, compared to N3.14billion in HY 2021 (41% growth year-on-year)
  • Annualized Earnings Per Share: 148 kobo. (HY 2021: 105 kobo)

Statement of Financial Position:

  • Total Assets: N531.79billion, compared to N453.60billion as at December 2021 (17% year-to-date growth)
  • Total Liabilities: N505.27billion, compared to N423.05billion as at December 2021 (19% year-to-date growth)
  • Shareholders Fund: N26.53billion, an 13% year-to-date decrease relative to December 2021’s value at N30.55billion.

Comparing HY 2022 with HY 2021, the following are worthy of note:

  • Gross Earnings: United Capital’s gross earnings rose 33% year-on-year to N9.11billion in HY 2022 compared to N6.85billion in HY 2021 largely attributable to growth in Fee and Commission income (+24% year-on-year), Investment Income (+9% year-on- year) and net trading income (586% year-on-year).
  • Cost-to-Income ratio: During the period under review, the Group cost-to-income ratio declined by 0.85 percentage points to 44.58% from 45.43% in HY 2021 largely driven by 33% growth in revenue against a 31% growth in operating expenses which was driven by 31% growth in other operating expenses, 55% growth in personnel expenses and 14% growth in impairment allowance. This shows improvement in operational efficiency.
  • PBT Margin: United Capital recorded improvement in Profitability margin during the period under review as PBT margin grew by 2.98 percentage points to 57.56% in HY 2022 compared to 54.57% in HY 2021.

United Capital PLC (UBCAP.ng)

Share price: 12.40 NGN (-0.15 | -1.20% – 12/08/22)