With about 28 per cent increase in revenue, United Capital Plc has announced N7.73billion profit after tax in nine months ended September 30, 2022, representing an increase of 29 per cent Year-on-Year (YoY) growth from N55.97billion reported in nine months of 2021.
The company in its unaudited result and accounts for nine months submitted on the Nigerian Exchange Limited (NGX) also announced N9.12billion profit before tax, compared to N7.09billion reported in nine months of 2021
The growth in profits was driven by 28 per cent YoY increase in revenue to N14.55billion in nine months of 2022, compared to N11.33billion in nine months of 2021, while net operating income grew by 22 per cent YoY to close at N13.49billion in nine months of 2022, compared to N11.08billion in nine months of 2021.
The company noted that its gross earnings increase was driven majorly by growth in Fee and Commission income that grew by 31 per cent YoY and five per cent YoY increase in its investment income.
According to its statement, The Group’s cost-to-income ratio grew by 2.06 percentage points to 39.46per cent in September 2022 from 37.40per cent in September 2021, attributable to 28per cent growth in revenue compared to 35% growth in operating expenses.
“The growth in operating expenses was driven by 30 per cent growth in other operating expenses arising from our digitalization drive, 33per cent growth in personnel expenses and 77per cent growth in impairment allowance in compliance with IFRS 9 which requires financial assets be tested for impairment using expected credit loss model,” the company explained in a statement to investors.
The Group Chief Executive Officer, United Capital, Mr. Peter Ashade in a statement said, “I am pleased to inform our stakeholders that United Capital achieved another outstanding performance in the third quarter of the year.
“This is a fulfilment of our commitment to our stakeholders to keep delivering enhanced returns and driving sustainable growth across all our business lines.
“In the fourth quarter of the year 2022, we expect global financial conditions to remain tight, presenting growth challenges for emerging economies.
“We remain committed to facilitating capital flows to critical sectors that drive growth and national development in our domestic economy while striving to create and preserve wealth for our clients, investors, and stakeholders amid the tough operating environment.”