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United Capital net profit drops 49% in Q1

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United Capital net profit drops 49% in Q1

UNITED Capital Plc has recorded a decline in net profit of 49 per cent in the first quarter of 2019. The investment bank results for period ended March 31, 2019 on the Nigerian Stock Exchange (NSE), showed that profit after tax declined from N1.25 billion to N640 million, while profit before tax also dropped by 48 per cent to N770 million in Q1, 2019, compared to N1.49 billion in Q1, 2018.

Also revenue down by 34 per cent to N1.45 billion from N2.20 billion in 2018, owing to a decrease in income from fixed deposit and investment securities as we as drop in other fees and charges and net trading income from the sales of financial instrument. Operating income stood at N1.35 billion, down by 21 per cent from N1.72 billion in 2018.

The financial position of the company showed that total assets grew by three per cent to N153.15 billion from N148.70 billion, while funds under management stood at N79.16 billion compared to N75.69 billion as at full year 2018.

Speaking on the Group’s performance, the Group CEO of the company, Mr. Peter Ashade said “The quarter under review was indeed a challenging one of us as uncertainties around the 2019 general elections which took place therein plagued the capita market (equity and debt market) resulting in slower than expected economic activities in the Q1 of the year 2019.”

He noted that this was responsible in part for the reduction in the issuance of registered bonds, promissory notes and commercial papers by te federal government, state government as well as local government. Going into the Q2 of 2019, Ashade expected that with the relative calm that followed the general elections, the pace of bond and commercial paper issuance would pick up from late second quarter to early third quarter of 2019.

According to him, with shareholders interest perfectly etched on our minds, the group is confident that with its arsenal of time-tested strategies, its effort would begin to yield results in the coming quarter as we would be heading into the second quarter of 2019 with our heads held up high. “We would like to implore all stakeholders to be rest assured that we are on top of the situation as critical steps are being taken by top management to ensure a better result next quarter.”

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