United Capital Plc reported a 66.2 per cent leap in net profit in the first quarter of 2026, relative to the same period of 2025, the earnings report of the financial and investment services company issued on Monday showed.
The group, whose offerings range from investment banking, portfolio management, securities trading and trusteeship to asset management, wealth management and consumer finance, attained the earnings growth on the back of a fairly stronger revenue.
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Gross earnings advanced by nearly one third to N17.2 billion, helped by a much-improved fee and other commission income and net gain on financial assets at fair value through profit or loss.
It is a testament to the significance of fee and other commission (which comprises fees from brokerage, management and trusteeship services) the biggest contributor to the firm’s revenue pool.
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Even though asset management stood out as the company’s revenue spinner, contributing 34.4 per cent and 32 per cent to topline and bottom line respectively, UCAMAL, its newly established West Africa asset management subsidiary, ended up as the problem child of the group, posting a N258.4 million loss. That division was the only loss-making business among the group’s subsidiaries.
Last June, United Capital announced the launch of UCAMAL, which is based in Abidjan, in furtherance of its pan-African expansion drive, opening it up to opportunities on the investment banking landscape in the West African region beyond Nigeria, its base.
In the same month, it introduced to the regional market two mutual funds – UCAMWAL Bond Fund and UCAMWAL Diversified Fund – both denominated in CFA franc.
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The stronger earnings performance also derived strength from a muted increase in total expenses, which grew by 1.6 per cent. Profit before income tax jumped by 72.9 per cent to N11.6 billion, while profit after tax climbed to N9.8 billion from N5.9 billion.
The group posted N29.9 billion as total comprehensive income, up from N10.9 billion, helped by a N19.9 billion earned as fair value gain on investments in equity instruments measured at FVTOCI (net of tax).
Return on equity stood at 5.9 per cent. United Capital’s market capitalisation stood at N290.7 billion at the end of trade on Monday.
