United Capital Plc has announced an 80 per cent increase in its profit before tax (PBT) for the first half of 2026, posting N24.78 billion compared with N13.79 billion recorded during the corresponding period of 2025.

The performance was disclosed on Wednesday during the company’s Investor Relations Roundtable, themed “Decoding Performance: Insights into United Capital’s Growth Drivers and Outlook,” held in Lagos.

Speaking at the event, the Group Chief Finance Officer, Mr. Shedrack Onakpoma, attributed the strong financial results to disciplined implementation of the firm’s growth strategy, greater operational efficiency and continued investment in digital capabilities.

According to Onakpoma, the group’s gross earnings climbed by 58 per cent to N37.49 billion, reflecting the resilience of its diversified business operations alongside consistent execution of its long-term strategy.

He also revealed that profit after tax rose by 77 per cent to N21.10 billion from N11.89 billion reported in the same period of 2025, while shareholders’ funds increased by 25 per cent to N187.09 billion, compared with N149.99 billion as of Dec. 31, 2025.

“The numbers tell a story beyond revenue growth and profitability. They reflect how we are building a resilient institution, creating sustainable value across multiple markets and laying the foundation for a lasting legacy,” he said.

Onakpoma explained that profit growth outpaced revenue growth because of stronger operational efficiency and returns generated from the company’s investments in digital infrastructure.

He noted that United Capital’s cost-to-income ratio improved to 44 per cent from 50 per cent in the corresponding period of 2025.

Providing further insight into the company’s earnings, he said fee and commission income increased to N14.3 billion from N11.3 billion, while investment income advanced to N13.8 billion from N9.6 billion, driven by growth across the group’s core business segments.

The finance chief added that United Capital further strengthened its balance sheet by disposing of underperforming assets and reducing high-cost borrowings, moves that enhanced returns and improved overall financial resilience.

He said cash and cash equivalents rose to 24 per cent of total assets, up from 16 per cent at the close of 2025, providing stronger liquidity and positioning the company to capitalise on emerging investment opportunities.

Onakpoma also said the interim dividend of 30 kobo per share demonstrated the company’s commitment to maintaining a balance between rewarding shareholders and sustaining long-term growth.

He reaffirmed United Capital’s focus on disciplined execution, prudent risk management and sustainable value creation across Nigeria and other African markets.

Offering an assessment of the broader economy, the Chief Economist of United Capital Plc, Mr. Ayodele Akinwunmi, said reforms introduced by the Federal Government and the Central Bank of Nigeria (CBN) were improving macroeconomic fundamentals while creating attractive opportunities for investors.

According to Akinwunmi, stronger non-oil exports, increasing diaspora remittances and improved foreign exchange inflows have continued to boost investor confidence and reinforce economic stability.

He stated that exports of refined petroleum products, aviation fuel and fertiliser were expanding Nigeria’s foreign exchange earnings while reducing pressure on the country’s external sector.

“International investors are responding positively to ongoing reforms, while Nigerians in the diaspora are also increasing investments in the country.

“United Capital is actively supporting diaspora remittances and helping investors understand opportunities created by the reforms,” he said.

Akinwunmi further identified Nigeria’s lithium deposits as a strategic resource capable of positioning the country to benefit from the global transition to electric vehicles.

He said the company was working with investors and corporate organisations to unlock investment opportunities throughout the solid minerals value chain through structured investments.

Looking ahead, Akinwunmi projected that interest rates would moderate during the second half of 2026, creating a more supportive environment for business expansion and reducing borrowing costs.

He added that United Capital expects the Nigerian equities market to record about 11.6 per cent growth in the second half of the year, supported by banking, building materials, consumer goods, and oil and gas stocks.

He also projected that the naira would remain stable and could strengthen to about N1,360 per dollar before the end of the year, supported by stronger external reserves, lower foreign exchange demand, and increased capital inflows.

Source: Real News Magazine