United Capital PLC has released its financial results for the third quarter of 2024, posting a pre-tax profit of N9.6 billion, more than double the N4.1 billion recorded in the same period last year.
This represents a 131.61% year-over-year surge in pre-tax profit, bringing the total for the nine months ended September 30, 2024, to N18.7 billion—an impressive 92.7% increase compared to the same period in 2023.
United Capital’s Q3 revenue soared 100.47% YoY to N13 billion, up from N6.4 billion the previous year, while earnings per share (EPS) jumped 118.25% to N5.50.
Key highlights (2024 Q3 vs 2023 Q3)
Net Operating Income: N9.5 billion, +41.21% YoY
Fee and Commission Income: N4.2 billion, +102.70% YoY
Total Revenue: N13 billion, +100.47% YoY
Total Expenses: N4.4 billion, +77.83% YoY
Operating Profit: N8.5 billion, +114.80% YoY
Pre-Tax Profit: N9.6 billion, +131.61% YoY
Post-Tax Profit: N8.2 billion, +118.14% YoY
Fair Value on Equity Investments: N7.7 billion, -191.92% YoY
Total Assets: N1.2 trillion, +35.66% YoY
Commentary
United Capital recorded impressive growth in the third quarter of 2024, with total revenue for the period climbing to N13 billion, reflecting a 100.47% year-over-year increase from N6.4 billion in the same quarter of 2023.
The company’s fee and commission income also surged, jumping 102.70% YoY to N4.2 billion, depicting increased transactional activity. However, total expenses increased by 77.83% to N4.4 billion.
Despite the rise in expenses, pre-tax profit soared by 131.61% YoY, reaching N9.6 billion, up from N4.1 billion in Q3 2023. This brought United Capital’s cumulative pre-tax profit for the first nine months of the year to N18.7 billion, reflecting a 92.7% YoY increase.
Post-tax profit saw significant growth, rising 118.14% year-over-year to N8.2 billion in Q3 2024. Additionally, the company’s earnings per share (EPS) jumped to N5.50, up from N2.52 recorded in the same period last year.
Growth in Assets
- United Capital’s total assets grew significantly to N1.26 trillion as of September 30, 2024, a 35.66% increase from N931.9 billion a year earlier, amid an increase in cash reserves and receivables.
- The rise in assets was fueled by a remarkable jump in cash and cash equivalents, which surged from N145.3 billion to N434.8 billion for the year, and trade and other receivables, which more than doubled from N85.5 billion to N195.9 billion.
- However, liabilities also grew substantially, reaching N1.15 trillion, up from N841.2 billion in the previous year.
Cash Flow Performance
- United Capital reported a strong cash position, with net cash and cash equivalents rising by N303.2 billion for Q3 2024, rebounding from a N4.1 billion decrease in the same period last year.
- This recovery was powered by N90.4 billion in operating cash flows, despite fluctuations in trade receivables and currency volatility.
- The company’s investing activities generated N113.9 billion in net inflows, driven by the disposal of investment securities, while financing activities contributed N98.9 billion, supported by new borrowings.
