United Capital’s 2020 profit leaps to N7.8bn after 50% revenue rise

United Capital Plc’s revenue expanded by as much as half in 2020, paving the way for profit to climb by N2.838 billion to N7.811 billion, the audited earnings report of the investment banking firm showed on Monday.

Turnover lifted from N8.592 billion to N12.874 billion on the back of simultaneous growth in investment income, fee and other commission, which were up by 42.3 per cent and 76.8 per cent respectively.

However, a surge from N109.555 million to N671.892 million in the amount required to make provision for bad debt capped earnings, according to the filing to the Nigerian Stock Exchange, examined by PREMIUM TIMES.

United Capital had stated on Thursday it would pay a N0.70 dividend per share to shareholders for 2020 compared to N0.50 it paid in the previous year, bringing its dividend yield to 11.67 per cent.

Profit before income tax scaled up to N7.948 billion from N4.950 billion, soaring by 60.6 per cent.

Profit for the year was up by 57.1 per cent, having climbed to N7.811 billion from N4.973 billion.

“This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges,” Chief Executive Peter Ashade said of the uplift last year’s cheering performance could give to the company’s fortune in 2021.

Earnings per share grew by 56.6 per cent from N0.83 to N1.30, while shareholders fund jumped from N19.586 billion to N24.426 billion.

Shares in United Capital were down by 5.51 per cent at N6 on the NSE on Monday.