United Capital Plc Achieves Impressive 7.57% Q3 Pre-Tax Profit Growth

United Capital Plc has recently released its third-quarter results for the year 2023, demonstrating a noteworthy performance in various key financial indicators. These results underscore the company’s strong position and resilience in the market.

In the third quarter of 2023, United Capital reported a pre-tax profit of N4.175 billion, representing a substantial year-on-year growth of 7.57%. This impressive performance has propelled the company’s nine-month pre-tax profits to N9.718 billion, compared to N9.124 billion during the same period the previous year.

Let’s delve into the key highlights of United Capital’s Q3 2023 performance compared to the same quarter in 2022:

**Gross Earnings:** The company’s gross earnings amounted to N6.492 billion in Q3 2023, marking a substantial increase of 19.42% year-on-year. This growth is a testament to the company’s ability to generate revenue effectively.

**Investment Income:** United Capital reported a remarkable year-on-year increase in investment income, reaching N3.983 billion in Q3 2023, which is an impressive growth rate of 51.95%. This significant boost in investment income played a vital role in enhancing the company’s overall profitability.

**Fees and Commission Income:** On the downside, fees and commission income for Q3 2023 stood at N2.072 billion, reflecting a decline of 13.86% compared to the same period in 2022. This decrease can be attributed, in part, to a reduction in advisory fees.

**Net Trading Income:** United Capital experienced a substantial decrease in net trading income, reporting -N307.36 million in Q3 2023. This represents a decline of 187.84% compared to Q3 2022, indicating challenges in this particular segment of their operations.

**Net Operating Income:** The company reported a net operating income of N5.748 billion in Q3 2023, reflecting a year-on-year growth of 6.90%. This increase in net operating income contributed positively to the overall profitability of the company.

**Other Income:** United Capital reported a significant boost in other income, reaching N843.39 million in Q3 2023. This represents an impressive year-on-year growth of 120.35%. This increase was largely driven by foreign exchange gains, highlighting the company’s effective management of its financial assets.

**Net (Loss)/Gain on Financial Assets:** The company reported a net loss of -N100.09 million in Q3 2023, which is a decline of 69.10% compared to the same period in 2022. This suggests that the company faced challenges in managing its financial assets during this quarter.

**Total Expenses:** United Capital’s total expenses for Q3 2023 amounted to N2.517 billion, reflecting a significant year-on-year increase of 49.95%. The increase in expenses could be attributed to various factors, including operational costs and investments in business growth.

**Operating Profit Before Income Tax:** The company reported an operating profit before income tax of N3.974 billion in Q3 2023, marking a 5.78% year-on-year growth. This metric underscores the company’s ability to maintain profitability in its core operations.

**Profit for the Period:** United Capital reported a profit of N3.779 billion in Q3 2023, representing a notable year-on-year growth of 15.24%. This increase in profit reflects the company’s overall financial strength and sound business strategies.

**Earnings Per Share:** The earnings per share (EPS) for the company in Q3 2023 stood at N2.52, reflecting a year-on-year increase of 15.07%. This metric is crucial for shareholders as it indicates the earnings attributed to each outstanding share of the company.

**Investment in Securities:** United Capital’s investment in securities amounted to N418.574 billion in Q3 2023, reflecting a year-on-year growth of 8.29%. This demonstrates the company’s commitment to managing and growing its investment portfolio effectively.

**Cash and Balances with Central Bank:** The company reported cash and balances with the Central Bank amounting to N243.180 billion in Q3 2023, marking an impressive year-on-year growth of 62.26%. This indicates strong liquidity and financial stability.

**Total Assets:** United Capital’s total assets in Q3 2023 stood at N732.498 billion, reflecting a substantial year-on-year growth of 21.69%. This growth in total assets underlines the company’s robust financial position and its ability to expand its operations.

**Managed Funds:** The company reported managed funds of N450.962 billion in Q3 2023, reflecting a year-on-year growth of 9.01%. This demonstrates the company’s success in attracting and managing funds on behalf of its clients.

In summary, United Capital Plc’s performance in the third quarter of 2023 has been quite remarkable. The company reported a 7.57% year-on-year growth in pre-tax profits, primarily driven by an increase in gross earnings. This growth was further fueled by higher net investment income and other income, particularly foreign exchange gains. However, the company also faced challenges, such as a decline in fees and commission income and a significant increase in other operating expenses. Nonetheless, United Capital’s strong financial position, growing asset base, and increasing managed funds indicate its continued commitment to providing financial services and investment solutions to its clients while navigating market challenges effectively.