Last Update29 Jul 25Fair value Decreased 5.31%
WaneInvestmentHouse has decreased revenue growth from 13.4% to 0.0%, decreased profit margin from 100.0% to 62.0%, decreased shares outstanding growth rate from 0.1% to 0.0% and decreased timeframe from 5 years to 3 years.
United Capital Plc has delivered a strong performance in H1 2025, with significant year-on-year growth in earnings and total comprehensive income, despite a modest decline in asset base. The firm demonstrates excellent profitability, robust fee and commission income growth, and prudent cost management, making it a compelling pick for investors seeking exposure to the financial services sector.
Strengths:
✅ Strong Profit Growth: Net profit grew by 54% YoY from ₦7.74 billion (H1 2024) to ₦11.89 billion, reflecting improved earnings efficiency and scale.
✅ Robust Operating Performance: Operating profit rose by 49%, driven by increased fee and commission income (+80%) and investment income (+104%), underlining United Capital’s diversified revenue streams.
✅ Exceptional Comprehensive Income: Fair value gains on financial assets boosted total comprehensive income by 22% to ₦42.41 billion, showing strong portfolio performance and favorable market conditions.
✅ Earnings Per Share (EPS) Growth: EPS increased to 132 kobo from 86 kobo, reflecting improved shareholder value and earnings quality.
✅ Efficient Cost Management: While total expenses grew 67% YoY, revenue grew faster at 57%, preserving the operating margin.
Weaknesses / Risks:
⚠️ Decline in Total Assets: Group total assets declined by 6.8% to ₦1.59 trillion from ₦1.70 trillion in FY 2024, primarily due to reduced investment securities and trade receivables.
⚠️ Increased Liabilities in Core Operations: Managed funds and borrowed funds increased significantly YoY, which could pressure liquidity and interest expense in a high-rate environment.
⚠️ Reduction in Parent Company Equity: Shareholders’ fund at the company level dropped by ₦2.7 billion, possibly due to dividend payout and portfolio revaluation, which needs monitoring.
⚠️ One-Off Valuation Impact: A large portion of total comprehensive income came from fair value gains (₦30.5 billion), which may not be recurring and could overstate core operating performance.
How well do narratives help inform your perspective?
Disclaimer
The user WaneInvestmentHouse holds no position in NGSE:UCAP. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.