NEWS
United Capital’s Nine-Month Profit Rises 66 Percent To ₦41.58bn As Investment Income Nearly Doubles
United Capital’s Nine-Month Profit Rises 66 Percent To ₦41.58bn As Investment Income Nearly Doubles
United Capital’s profit before tax rose 66.24 percent to ₦41.58bn in the nine months to September 2026, while gross earnings increased 50.37 percent to ₦62.47bn.
Net investment income surged 94.65 percent to ₦22.03bn, overtaking fee and commission income as the company’s largest earnings contributor.
Cash and cash equivalents more than doubled to ₦618.08bn, even as the company’s shares declined 11.5 percent year-to-date to ₦16.55.
October 29, () – United Capital Plc increased its profit before tax by 66.24 percent to ₦41.58 billion in the nine months ended September 2026, supported by higher investment income, stronger fee and trading revenue, and lower impairment charges.
The investment banking and financial services group reported gross earnings of ₦62.47 billion, up 50.37 percent from ₦41.54 billion in the corresponding period of 2025, according to its unaudited consolidated financial statements filed with the Nigerian Exchange on October 26.
Profit after tax rose 64.51 percent to ₦34.83 billion from ₦21.17 billion, while earnings per share increased to 258 kobo from 157 kobo.
The results show that investment income was the biggest driver of earnings growth, while operating expenses rose more slowly than net operating income. However, the increasing contribution of investment income also exposes the company’s profitability to changes in financial market conditions.
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Investment Income Overtakes Fees
Net investment income rose 94.65 percent to ₦22.03 billion from ₦11.32 billion, becoming United Capital’s largest earnings contributor during the nine months.
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The increase exceeded growth in the company’s other major revenue streams. Fee and commission income rose 26.63 percent to ₦20.95 billion from ₦16.54 billion, while net trading income increased 29.40 percent to ₦12.60 billion from ₦9.74 billion.
Together, these three income streams accounted for ₦55.58 billion in net operating income, up 47.82 percent from ₦37.60 billion a year earlier.
Operating expenses increased 27.80 percent to ₦23.51 billion from ₦18.40 billion, growing more slowly than net operating income and supporting improved profitability.
Impairment charges also declined by approximately 61 percent to ₦366.97 million from ₦940.65 million. The financial statements classified the charges under Stage 1, with no Stage 2 or Stage 3 impairment charges reported.
Operating profit before tax rose 68.31 percent to ₦38.96 billion, while a ₦2.63 billion share of profit from associates contributed to the final pre-tax figure of ₦41.58 billion.
The estimated income tax charge stood at ₦6.75 billion, implying an effective tax rate of approximately 16 percent.
Despite the improvement in profit, total comprehensive income declined 8.54 percent to ₦101.34 billion, reflecting lower fair-value gains on equity investments. This indicates that movements in investment valuations continued to affect the company’s broader financial performance beyond the profit reported for the period.
Third-Quarter Earnings Remain Strong
United Capital’s third-quarter performance also improved, based on figures derived by subtracting its first-half results from its nine-month statements.
Pre-tax profit reached approximately ₦16.80 billion in the third quarter, compared with an average quarterly pre-tax profit of about ₦12.39 billion in the first half, when the company reported ₦24.78 billion.
Third-quarter profit after tax was approximately ₦13.73 billion, up about 48 percent from ₦9.28 billion in the corresponding period of 2025.
Gross earnings rose to approximately ₦24.98 billion from ₦17.78 billion, representing growth of about 40 percent.
The figures suggest that earnings momentum continued beyond the first half, with quarterly pre-tax profit exceeding the average recorded in the preceding six months. However, the third-quarter figures are derived estimates rather than results presented in a standalone quarterly income statement.
Cash Rises As Investment Securities Decline
United Capital’s balance sheet showed a substantial increase in cash and cash equivalents, which rose 115.28 percent to ₦618.08 billion as of September 30, 2026.
Total assets increased by 2.96 percent to ₦1.81 trillion from ₦1.76 trillion at the end of December 2025. Over the same period, investment securities declined 20.66 percent to ₦1.07 trillion.
The combination of higher cash balances and lower investment securities points to a shift in the composition of the company’s assets towards cash. The reported figures alone, however, do not establish how much of the movement resulted from investment sales, maturities or other transactions.
Total liabilities declined 2.16 percent to ₦1.58 trillion from ₦1.61 trillion, while shareholders’ funds increased 58.06 percent to ₦237.08 billion from ₦150 billion.
Retained earnings stood at ₦73.62 billion, while fair-value reserves amounted to ₦153.55 billion. Regulatory capital increased to ₦556.76 billion from ₦522.01 billion.
Borrowed funds fell 14.03 percent to ₦320.08 billion, comprising ₦281.79 billion in loans from banks and financial institutions, a ₦26.61 billion overdraft and ₦11.67 billion in bonds. The company also reported no outstanding commercial paper and no defaults on principal or interest payments.
The balance-sheet movements point to improved reported liquidity, lower liabilities and stronger shareholders’ funds, although the composition and quality of earnings remain important considerations in assessing the durability of that improvement.
Shares Remain Down Despite Profit Growth
United Capital’s earnings growth has yet to translate into positive share-price performance for the year.
The stock closed at ₦16.55 on October 26, down 2.1 percent from ₦16.90 in the previous trading session. From its opening level of ₦18.70 at the start of 2026, the share price had declined approximately 11.5 percent.
At ₦16.55, the company’s 18 billion outstanding shares implied a market capitalisation of about ₦297.9 billion.
The contrast between rising earnings and weaker share-price performance suggests that investors may be weighing factors beyond the headline profit increase, including market conditions and the sustainability of investment returns.
With net investment income now exceeding fee and commission income, maintaining profitability will depend partly on the company’s ability to sustain investment performance while controlling costs and protecting its balance sheet against changing market conditions.
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