United Capital Plc grew its total assets by 20 per cent to N95.29bn in the financial year ended December 31, 2014, from N79.48bn reported in 2013, the company’s audited results for the year showed.
According to the company, cash and cash equivalents made up 33 per cent of the group’s assets, while financial assets made up 61 per cent of the total assets.
It also disclosed that shareholders’ funds as of the end of 2014 stood at N9.31bn and the company’s return on average equity was 21 per cent, highlighting continued value creation for shareholders.
In terms of earnings, United Capital said its gross earnings amounted to N4.86bn in 2014, indicating a 2.3 per cent growth year-on-year.
It explained that the gross earnings were driven primarily by fee and commission income (39 per cent) and investment income (35 per cent).
The company declared a profit after tax of N1.84bn, five per cent higher than the N1.76bn it made in 2013.
It said in a statement that the profitability level “was achieved notwithstanding that the company operates predominantly in the capital market space where the equity market in general posted a negative return of 16.1 per cent.”
In the year under review, United Capital’s operating expenses increased by 18.6 per cent from N2.1bn in 2013 to close at N2.4bn in 2014.
The company explained in its statement that during the year, it demonstrated its patriotism and strong commitment to corporate social responsibility through significant support to the tune of N150m in favour of the displaced victims of insurgency in the nation.
It assured stakeholders of sustained growth, saying, “The company’s management is confident of its ability to sweat the growth in assets to achieve greater profitability in future.
“Management’s current drive is for a reduction in cost to income ratio through income growth from all the businesses as well as the deployment of recently acquired IT Infrastructure to drive efficiency.”
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Source : Punch