United Capital Reports N58.6bn Revenue As Profit Hits N28.15bn

By Kingsley Ani

United Capital Plc, at its 13th Annual General Meeting, reported revenue growth to N58.6 billion for the 2025 financial year, a 35 percent increase from N43.43 billion in 2024. Uche Ike, the Chairman, and Peter Ashade, Group Chief Executive Officer, disclosed that profit after tax rose to N28.15 billion, driven by a 176 percent surge in trading income and a 59 percent increase in fees and commissions, alongside a N1 per share dividend payout.

DECISION HIGHLIGHT
Sustained earnings expansion combined with increased dividend distribution, signalling confidence in revenue durability and capital strength.

DECISION MEMO
The performance reflects a trading-led growth model underpinned by market activity rather than structural expansion. The 176 percent increase in trading income indicates strong positioning in volatile financial markets, where elevated interest rates and currency movements create trading opportunities.

Ashade stated, “these results are not accidental… they reflect years of deliberate choices around people, products and discipline,” indicating strategy-led execution.

Ike highlighted a 20 percent return on average equity, reinforcing capital efficiency. However, asset concentration remains significant, with 76 percent of total assets in investment securities, exposing earnings to market volatility cycles.

The dividend increase to N1 per share, up 25 percent, signals management confidence in earnings sustainability, though it raises capital allocation considerations as expansion ambitions persist.

DATA BOX
• Revenue: N58.6bn vs N43.43bn, +35 percent
• Profit after tax: N28.15bn vs N24.10bn
• Profit before tax: N41.18bn vs N30.10bn, +37 percent
• Net trading income: +176 percent
• Fees and commissions: +59 percent
• Total assets: N1.76trn vs N1.70trn, +4 percent
• Shareholders’ funds: N150bn vs N133.50bn, +12 percent
• Return on equity: 20 percent
• Dividend: N1 per share (N18bn total), +25 percent

WHO WINS / WHO LOSES
Winners: Shareholders, capital market participants, income-focused investors.
Losers: Risk-averse investors exposed to earnings volatility, competitors with weaker trading capacity.

POLICY SIGNALS
Reinforces the role of capital markets and trading income in driving financial sector profitability within a volatile macroeconomic environment.

INVESTOR SIGNAL
Strong earnings growth and dividend expansion support investor confidence, though sustainability remains tied to market conditions.

RISK RADAR
Primary risk is earnings volatility linked to trading income concentration. Secondary risks include asset concentration, macroeconomic instability, and potential regulatory tightening affecting capital market operations.