In a year marked by challenging market conditions and economic uncertainty, United Capital Plc, an investment management company and financial services powerhouse has emerged as a beacon of stability and growth.
The financial services group has not only navigated a tough operating environment but has done so with remarkable success, solidifying its position as a leader in the financial services sector, and delivering extraordinary value to its shareholders.
The first half of the year 2024 has been particularly impressive for United Capital, with key highlights including an outstanding financial performance that saw its Profit After Tax increasing by 65% year-on-year to N7.74 billion, Profit Before Tax increased by 63% year-on-year to N9.06 billion, Gross Earnings growing by 38% year-on-year to N15.15 billion and Total assets grew by 27% year-to-date to N1.19 trillion.
A major event for United Capital shareholders was the recent declaration of its first-ever interim dividend of N0.90 per share. This landmark dividend is the first of its kind in 2024 within the financial services sector, setting a new capital market standard that even the large tier 1 banks have yet to match.
Yet, the rewards didn’t stop there. Just when shareholders thought it could not get any better, United Capital announced a 2-for-1 bonus share issuance – meaning that for every unit of shares held, shareholders receive two additional shares, effectively tripling their holdings and future profit potential. Recall that earlier in the year, United Capital also rewarded its shareholders with dividends from its full-year 2023 performance, amounting to a solid N1.80 per share.
It is no wonder that its Shareholders’ Fund in H1 2024 has increased by 33% year-to-date to N120.34 billion; the company consistently reinforces its commitment to delivering exceptional value to its shareholders.
Despite market predictions leaning towards an increased favorability of commercial bank stocks over other stocks due to the recent bank recapitalization efforts in Nigeria, United Capital’s stellar performance and exceptional value delivery prove otherwise. The company’s ability to deliver unmatched returns and dividends as a non-banking institution and an OFI sets it apart, making it the top choice for investors seeking superior value.
‘’Our performance reaffirms our commitment to wealth creation and superior value delivery to our shareholders. We are assured about sustaining our performance in 2024 having kicked off the second half of the year 2024 in a robust financial position with close to N1.3trillion funds under management comprising trusts, mutual funds, and other professionally managed investments for our clients across diverse segments.
We are strongly positioned to deliver on our growth objectives while remaining competitive and sustainably profitable.’’ said Peter Ashade, Group CEO of United Capital Plc in a statement released to the Nigerian Exchange (NGX)
Certainly, investors’ sentiments in response to United Capital’s impressive performance have been overwhelmingly positive. Over the past year, the company’s stock price has surged by a remarkable 158.3%, making it one of the hottest stocks on the exchange, reflecting investor confidence and the strong financial fundamentals of the company. Also, when compared to tier 1 banks and other financial institutions (OFIs), United Capital stands out, delivering a phenomenal 76.3% year-to-date return.
As United Capital continues to execute its strategic vision, shareholders can look forward to even more rewarding opportunities. The company’s recent performance and strategic initiatives demonstrate that it is not just surviving in a challenging economic landscape but thriving, setting new benchmarks, and redefining success in the financial services sector.
The future evidently looks bright for United Capital and its shareholders, and the market eagerly anticipates what the rest of 2024 holds, which is poised to be highly rewarding.