Shareholders approve United Capital’s N4.2b dividend




Whatsapp News

Shareholders of United Capital Plc on Tuesday approved the payment of N4.2 billion as cash dividend for the 2020 year.

At the Annual General Meeting (AGM) Lagos, shareholders considered and approved the financial statements for the 2020 year, including distribution of N4.2 billion as cash dividends for the year, representing a dividend per share of 70 kobo.

The dividend is payable to shareholders whose names appear on the register of members at the close of on March 5, 2021.

Key extracts of the audited report and accounts of United Capital for the year ended December 31, 2020 showed that turnover rose by 50 per cent while pre and post tax profits jumped by 61 per cent and 57 per cent respectively.

The report showed that gross earnings rose from N8.59 billion 2019 to N12.87 billion in 2020. Net operating income grew by 58 per cent from N7.90 billion to N12.49 billion in 2020. Profit before tax leapt from N4.95 billion in 2019 to N7.95 billion in 2020. Profit after tax jumped from N4.97 billion to N7.81 billion. Earnings per share rose correspondingly by 57 per cent from 83 kobo in 2019 to N1.30 in 2020.

The balance sheet also showed considerable improvements with total assets rising by 48 per cent from N150.46 billion 2019 to N224.75 billion in 2020. Total liabilities grew by 52 per cent to N198.32 billion as against N130.88 billion in previous year. Shareholders’ fund rose by a quarter from N19.59 billion in 2019 to N24.43 billion in 2020.

Shareholders commended the company for its transparency the published financial statements, and its adherence to legal and ethical requirements as corroborated by the company’s auditors who were also present.

Chairman, United Capital Plc, Mr. Chika Mordi noted that despite the macroeconomic pressure, United Capital reported an outstanding financial performance 2020.


Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade said the company’s financial performance, what was a year of protracted disruptions, was a testament of unwavering commitment to clients’ needs.

“For us at United Capital, we are optimistic about the year 2021 as it presents greater opportunities for innovation, growth, and expansion beyond our current ecosystem,” Ashade said.

He noted that in addition to its outstanding financial performance, United Capital also recorded landmark achievements during the year, including improvement in the company’s corporate ratings from BBB+ to A- with a stable short-term and long-term outlook reflective of an investment grade institution.

According to him, the company’s flagship digital platform, InvestNow, recorded over N1 billion in processed investors assets with its newly commissioned consumer finance line disbursing 64,536 instant loans valued at N3.14 billion, leveraging a 100 per cent digital model.

He outlined that major contributors to the company’s overall performance were its subsidiary businesses – investment banking, asset management, securities and trustees, which was highlighted in the company’s emergence as top three largest fund manager from 10th position in 2019 with its mutual fund assets under management exceeding N162 billion at the end of 2020 from N39 billion as at year-end 2019.

He pointed out that the company also served as the lead issuing house and trustee on various high-profile public and private securities issuances with a total value exceeding N400 billion in 2020 among others.

Source