BEVERLY HILLS, February 24, (THEWILL) – United Capital Plc has recorded positive results for the year ended December 31, 2020, as its Profit Before Tax (PBT) jumped by 61 percent to N7.95 billion (PBT), compared to N4.95 billion in 2019, showing an increase of 57 percent above the N4.97 billion in 2019.
The company, in its financial statement recorded revenue of N12.874 billion in 2020, showing a growth of 50 percent from N8.592 billion posted in 2019.
The statement read that the company’s revenue growth was achieved on the back of strong growth in fee and commission income (+77 per cent), investment income (+42 percent), and net trading income which was up 453 percent.
According to the statement, the PBT margin gained 4.13 percentage points to 62 percent in 2020, relative to 58 percent in 2019. Similarly, PAT margin also improved by 2.79 percentage points to 61 percent, despite to a tax charge of 2.0 percent in 2020 relative to a tax credit of N23.7 million in 2019.
Its total assets grew by 48 percent to N224.75 billion in 2020 from N150.46 billion in 2019 largely on account of a significant 54 percent increase in investment in financial assets and a 44 percent growth in the cash and cash equivalents line.
Based on the impressive performance, the directors have proposed a dividend of 70 kobo per share, amounting to a total of N4.2 billion dividend to shareholders, compared to 50 kobo paid the previous year.
Speaking on the performance, the Group Chief Executive Officer, Peter Ashade, said: “I am pleased to inform all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in revenue, PBT and PAT and solid performance across key business parameters.
“The performance has empowered them to adopt a more positive outlook for the year 2021 as they navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.
“Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021.”