United Capital Plc has released its first quarter ended March 31, 2025, reporting a profit before tax (PBT) of N6.7 billion, representing a 64.51% year-on-year (YoY) growth.
Gross earnings more than doubled, growing by 113% YoY to N13.10 billion.
Notably, this already accounts for over 30% of the Group’s full-year gross earnings in 2024, indicating a strong start to the year.
CEO’s Remarks:
Commenting on the performance, Group CEO, Mr. Peter Ashade, stated:
“This performance reflects our unwavering dedication to creating wealth, transforming lives, and increasing shareholders’ value.”
He further emphasized the role of a strong business model and purpose-driven execution in achieving these results.
Revenue drivers
A deeper dive into the revenue components shows the topline growth was broad-based and anchored on three key streams:
- Investment income surged by 491.28% YoY to N6.408 billion
- Fees and commission income rose by 71.71% YoY to N4.461 billion
- Net trading income grew by 138.13% YoY to N1.505 billion
This significant revenue growth helped cushion the impact of rising costs, ensuring a robust bottom line.
Profitability and costs
Despite a sharp 209.49% increase in total expenses to N6.994 billion, driven primarily by a 138% surge in other operating expenses, which made up over 72% of total costs, the Group managed to sustain profitability growth.
- Profit after tax climbed by 64.33% YoY to N5.89 billion, and annualized EPS improved to N1.31, up 63.75% YoY.
Balance sheet highlights
United Capital’s total assets stood at N1.72 trillion as of March 31, 2025, representing a marginal 1% increase from the N1.70 trillion reported at the end of December 2024.
The Group attributed this modest growth primarily to a 6% increase in investment securities during the period, reflecting continued expansion of its investment portfolio.
On the liabilities side, the Group recorded a 6% reduction in borrowed funds alongside a notable 54% decline in other liabilities. These reductions contributed to a slight 1% decrease in total liabilities, which fell from N1.58 trillion in December 2024 to N1.57 trillion by the end of Q1 2025.
In contrast, a more significant area of growth was seen in shareholders’ equity. Shareholders’ funds rose by 21% within the three-month period to N161.52 billion, driven largely by a 37% increase in the fair value reserve signaling improved valuation of financial assets and stronger capital positioning.
Share price performance
United Capital’s share price appears to be on a recovery path. It closed at N18.25 on April 29, 2025, posting a Year-to-Date (YtD) loss of 10.5%, an improvement from the 19.21% decline recorded in Q1 2025 and the 11% full-year loss in 2024.
Results insight
United Capital’s Q1 2025 results demonstrate strong earnings momentum, driven by diversified income streams and effective balance sheet management.
The company’s Q1 performance suggests it can scale revenues aggressively, particularly from investment income and trading activities, despite a high-cost environment.
The significant growth in shareholders’ equity, coupled with a strong ROE and improving EPS, suggests that United Capital is well positioned to deliver value to investors through the rest of the year.
