United Capital PAT up 111% in FY'24

United Capital, the investment bank and financial services group, has reported a remarkable surge in its Profit After Tax by 111 per cent to 24.1 billion naira in the financial year 2024. Despite a 5 per cent decline in gross earnings during the same period, the company's stellar performance has caught the attention of investors and industry experts. In a recent CNBC Africa interview, Ejikeme Okoli, the Director of Strategy and Africa Operations at United Capital Group, delved into the details of the company's revenue profile and expansion plans. United Capital's strong earnings in 2024 were primarily driven by income from managed funds, which witnessed an increase of over 80 per cent. The challenging economic environment characterized by fluctuating interest and inflation rates did not deter the company from delivering exceptional advisory services to its clients, ultimately contributing to the impressive financial results. Additionally, fees and commission earnings, including advisory fees, played a significant role in the revenue growth, as well as a surge in trading and investment income. However, there was a slight decline in other income due to underperforming foreign fixed income instruments. Despite this, the company's bottom line recorded substantial growth of 74 per cent in Profit Before Tax and over 111 per cent in Profit After Tax. United Capital's commitment to creating shared prosperity for stakeholders was exemplified by the issuance of bonus shares and dividend payments in 2024. The company distributed a total of 2.40 naira per share to shareholders, significantly increasing their wealth and reinforcing investor confidence. Looking ahead to 2025, Ejikeme Okoli expressed optimism about a more favorable operating environment compared to the previous year. With a stable exchange rate and the government's clear economic direction, businesses have greater confidence in projecting future outcomes. Despite the tapering yields, Nigeria remains an attractive investment destination with ample opportunities in both the capital and debt markets. United Capital's strategic focus on expanding its investment management business across eight Francophone West African countries demonstrates its commitment to global growth and diversification. By enhancing its capacity, skill sets, and reach, the company aims to provide clients with access to new opportunities and mitigate risks across various markets. With a forward-looking approach and a strong track record of financial success, United Capital is well-positioned to capitalize on emerging trends and deliver value to its stakeholders in the dynamic financial landscape.