United Capital Plc recorded a pre-tax profit of N9.06 billion in the first half of 2024, marking a 63% year-on-year growth from the N5.54 billion posted in the corresponding period in 2023.
The group posted a gross earning of N15.15 billion in H1 2024, marking a 38% YoY growth from the N11.01 billion recorded in H1 2023. Unlike in 2023, bulk of the group’s income in the 2024 half year were from the group’s N6.3 billion fees and commission income.
In the first half of 2024, United Capital’s assets grew by 27% to N1.19 trillion from N931.9 billion as at FYE 2023.
Key Highlights H1 2024 vs H1 2023
- Gross earnings: N15.15 billion, +38% YoY
- Investment income: N4.69 billion, -5% YoY
- Net operating income: N12.76 billion, +38% YoY
- Total expenses: N6.67 billion, +16% YoY
- Operating profit before income tax: N8.48 billion, +61% YoY
- Profit before tax: N9.06 billion, +63% YoY
- Profit for the period: N7.74 billion, +65% YoY
- Earnings per share: N2.58, +65% YoY
- Total assets: N1.19 trillion, +27% YTD
- Cash and cash equivalents: N494.1 billion, +240% YTD
- Investment securities: N589.4 billion, -15% YTD
Commentary: In H1 2024, United Capital’s cash and cash equivalents were aided by its N175.7 billion made from the disposal of some of its investment securities. Within the first six months of the year, United Capital also reduced its trade receivables from N34.5 billion as at FYE 2023 to N8 billion.
- The group also increased the funds under its management by 31% to N785.7 billion to N600.1 billion during the period under review.
- Year-on-year, United Capital’s income from its managed funds increased by 70% to N32.9 billion, from N19.3 billion as of H1 2023.
- However, the group incurred an interest expense of N37.7 billion during the period, marking a 91% growth from the N19.7 billion incurred in H1 2023.
- During the period under review, United Capital recorded a brokerage fee of N2.03 billion and a management fee of N3.68 billion.
- It also recorded an exchange gain of N1.8 billion, representing a 99% YoY growth from the N906 million exchange gain posted in H1 2023.
To distribute N5.4 billion in interim dividends
Off the backs of an incredible performance in H1 2024, the management of United Capital has announced an interim dividend of N0.90 per share, amounting to N5.4 billion in dividend distribution.
This will make it the first time in history that United Capital Plc will pay interim dividends, and it marks a dividend payout ratio of 70%. According to a corporate notice by the company, the dividends will be distributed to shareholders whose names appear in the register of members as of July 31, 2024.
Apart from its interim dividends, United Capital is also proposing a bonus share issuance of two new shares for every one held by existing shareholders.
On July 18, United Capital closed with a 9.92% gain, to hit a share price of N39.90, marking a 73.5% year-to-date return.
