United Capital Plc (UCAP) has experienced an extraordinary surge in its financial performance, closing 2024 with a remarkable 111.03% increase in Profit After Tax (PAT), rising from N11.42 billion in 2023 to N24.10 billion in 2024. This explosive growth is a testament to the company’s strategic execution and financial resilience over the past seven years.
One of the highlights of UCAP’s record year was its introduction of an inaugural interim dividend of 90 Kobo per share, marking the company’s commitment to rewarding its shareholders. This milestone follows a decade of consistent dividend payments, which further solidifies UCAP’s reputation as a trusted dividend-paying entity.
To further enhance shareholder value, United Capital executed a strategic 2-for-1 bonus share issuance, increasing the total number of outstanding shares from 6 billion to 18 billion. This move means that shareholders now hold three shares for every one share previously owned, further strengthening their stake in the company.
United Capital also proposed a final dividend of 50 Kobo per share for the 2024 financial year, bringing the total dividend payout for the year to N2.40 per share. This represents a notable increase, with the company distributing N14.4 billion in dividends, reflecting a 44% increase over the N10.0 billion paid out in the previous year.
The company’s financials were equally impressive, with gross earnings rising by 82.50%, driven by gains from loans, securities investments, and interest from placements and bonds. Fee and commission income surged by 80.18%, reflecting the company’s leadership in the financial advisory sector. Moreover, net trading income increased by 61.17%, bolstering UCAP’s position as a key player in Nigeria’s capital market.
Efficiency in cost management was another key factor in the company’s stellar performance. Total expenses dropped by 45.51%, resulting in a significant 63.26% reduction in the expenses-to-gross earnings ratio compared to 2023.
Looking ahead, United Capital remains committed to rewarding its shareholders and sustaining its exceptional performance. With a focus on expanding its footprint in the Nigerian and African capital markets, UCAP is well-positioned for future growth and profitability.
