With about 28% increase in earnings, United Capital Plc has announced N7.72billion profit after tax in nine months ended September 30, 2022, representing an increase of 29% Year-on-Year (YoY) growth from N5.97billion reported in nine months of 2021.
In its unaudited result and accounts for nine months submitted on the Nigerian Exchange Limited (NGX), the company also announced N9.12billion profit before tax, compared to N7.09billion reported in nine months of 2021.
The growth in profits was driven by a 28% YoY increase in earnings to N14.55billion in nine months of 2022, compared to N11.33billion in nine months of 2021, while net operating income grew by 22% 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 Fee and Commission income growth that grew by 31% 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 39.46% in September 2022 from 37.40% in September 2021, attributable to 28% 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, 33% growth in personnel expenses and 77% 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 Plc, 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.”
Culled from ThisDay Newspaper