Last Update 09 Nov 25
UNITED CAPITAL PLC – Solid Earnings Momentum and Balance Sheet Expansion Underscore Strong Q3 2025 Performance
Strategic Context
United Capital Plc delivered a resilient performance for the nine months ended 30 September 2025, reflecting robust earnings growth, sustained profitability, and a significantly strengthened balance sheet. The Group’s results highlight its ability to navigate a dynamic macroeconomic landscape marked by elevated interest rates, tighter liquidity, and fluctuating market yields.
Supported by its diversified business model spanning investment banking, asset management, trust services, and securities trading, United Capital continues to consolidate its leadership in Nigeria’s non-bank financial services space. The period’s performance underscores the company’s strategic agility and the success of its focus on investment income, trading gains, and strong cost discipline.
Earnings Performance Overview
United Capital posted gross earnings of ₦41.54 billion for 9M 2025, representing a 47.5% increase from ₦28.17 billion recorded in the corresponding period of 2024. This strong performance was primarily driven by growth in investment income, fee and commission income, and an impressive recovery in trading income.
- Investment Income: ₦11.32 billion, up 34.5% YoY from ₦8.42 billion, reflecting improved yields on fixed-income securities amid a high-interest-rate environment.
- Fee and Commission Income: ₦16.54 billion, up 57.4% YoY, driven by stronger corporate finance mandates, wealth management inflows, and capital market activities.
- Net Trading Income: surged 185.3% to ₦9.74 billion (from ₦3.41 billion), benefiting from favourable market positioning and robust proprietary trading gains.
However, other income declined to a loss of ₦1.47 billion from a gain of ₦6.26 billion in 2024, largely due to valuation adjustments on certain non-core investments. Despite this, the Group’s net operating income rose 68.3% YoY to ₦37.60 billion, underscoring solid underlying earnings resilience. After accounting for total expenses of ₦18.40 billion (up from ₦11.14 billion), operating profit before tax climbed 36.0% YoY to ₦23.14 billion, while profit before tax advanced to ₦25.01 billion, representing a 33.6% YoY increase. Following a tax charge of ₦3.84 billion, profit after tax settled at ₦21.17 billion, up from ₦15.98 billion in the same period of 2024. This robust earnings growth translated to annualised basic and diluted EPS of 157 kobo, compared with 118 kobo in 2024, reinforcing the Group’s sustained value creation for shareholders.
Balance Sheet Analysis
The Group’s balance sheet remained strong and liquid, with total assets rising 9.7% year-to-date to ₦1.87 trillion (from ₦1.70 trillion as of December 2024). This growth was supported by higher investment securities, loans, and cash balances, highlighting prudent asset allocation and funding efficiency.
- Cash and Cash Equivalents: ₦474.44 billion (+40.8% YTD), demonstrating enhanced liquidity management.
- Investment Securities: ₦1.15 trillion (+1.7%), reflecting a strategic reallocation into interest-bearing assets.
- Loans and Advances: ₦66.96 billion (+13.4%), as United Capital selectively expanded its credit exposure to quality obligors.
On the funding side, managed funds rose 26.8% to ₦1.07 trillion, supported by stronger investor confidence and retail product penetration. Borrowed funds moderated to ₦357.29 billion (-12.0% YTD), indicating a leaner funding mix and improved leverage position. Shareholders’ funds expanded significantly by 72.2% to ₦229.91 billion, driven by retained earnings growth and a remarkable expansion in fair value reserves to ₦173.78 billion (from ₦84.15 billion), buoyed by mark-to-market gains on financial assets at fair value through OCI.
Strengths and Weaknesses
Strengths:
- Strong top-line momentum across core business lines (investment and trading income).
- Robust asset growth and liquidity position, supporting future expansion.
- Significant increase in fair value reserves, bolstering shareholders’ equity.
- Improved cost efficiency despite higher inflationary pressures.
- Consistent profitability and strong capital adequacy position.
Weaknesses:
- Decline in other income, reflecting non-recurring investment losses.
- Rising operating expenses (+65.1% YoY) may pressure margins if not contained.
- Continued reliance on market volatility for trading income introduces earnings cyclicality.
Outlook
Looking ahead, United Capital is poised to sustain its positive growth trajectory, supported by Nigeria’s elevated interest rate environment, continued investor demand for capital market products, and the Group’s expanding retail franchise. The company’s diversified income streams and prudent risk management framework will remain critical in defending margins amid expected market corrections and potential monetary easing in 2026.
Management’s focus on technology-driven service delivery, digital investment platforms, and regional expansion across Africa is likely to underpin long-term earnings stability and enhance non-interest revenue contribution.
Analyst Commentary
United Capital’s 9M 2025 performance reinforces its position as one of Nigeria’s most efficiently run non-bank financial institutions. The substantial earnings growth, underpinned by diversified revenue sources and disciplined balance sheet management, demonstrates its resilience in navigating a challenging macroeconomic backdrop. The surge in fair value reserves and expanded asset base not only strengthen the Group’s capital buffers but also enhance its capacity to capture future growth opportunities across investment banking, fund management, and fintech-driven distribution. While rising costs and lower other income remain short-term headwinds, the company’s overall fundamentals remain compelling. United Capital’s strong liquidity, robust profitability, and consistent shareholder return position it favourably to deliver sustained value creation in the medium to long term.
Executive Summary
United Capital Plc delivered an exceptional performance for the nine months ended 30 September 2025, achieving strong revenue growth, solid profitability, and record comprehensive income despite a challenging macroeconomic backdrop. The Group reported a Profit Before Tax (PBT) of ₦25.0 billion, up 33.6% year-on-year from ₦18.7 billion in 2024, reflecting improved operating efficiency, higher trading income, and strong fee-based revenues. Net earnings growth was complemented by a surge in fair value gains on investments, driving total comprehensive income to an unprecedented ₦110.8 billion, a remarkable 216.8% year-on-year increase from ₦35.0 billion in 2024.
The result reinforces United Capital’s reputation as one of Nigeria’s leading investment banking and financial services institutions, leveraging its diversified business model across asset management, trusteeship, investment banking, and consumer finance.
Financial Highlights
₦’000 9M 2025 9M 2024 % Δ YoY Q3 2025 Q3 2024 % Δ YoY
Gross Earnings 41,541,788 28,165,367 +47.5% 10,775,916 9,910,811 +8.7%
Investment Income 11,318,301 8,416,338 +34.5% 1,407,867 726,615 +93.8%
Fee & Commission Income 16,540,473 10,509,309 +57.4% 4,123,226 2,116,057 +94.9%
Net Trading Income 9,739,521 3,414,109 +185.3% - - -
Total Revenue 41,541,788 28,165,367 +47.5% 10,775,916 9,910,811 +8.7%
Total Expenses (18,396,826) (11,143,255) +65.0% (3,039,538) (1,596,777) +90.3%
Operating Profit Before Tax 23,144,962 17,022,112 +36.0% 7,736,378 8,314,034 -7.0%
Profit Before Tax 25,014,458 18,731,108 +33.6% 7,736,378 8,314,034 -7.0%
Profit After Tax 21,172,992 15,984,880 +32.4% 7,301,593 7,783,640 -6.2%
Total Comprehensive Income 110,809,435 34,987,060 +216.8% 15,039,918 14,113,985 +6.6%
Earnings Per Share (Kobo) 157 118 +33.1% 54 58 -6.9%
Revenue Growth
United Capital recorded a robust 47.5% year-on-year growth in gross earnings to ₦41.54 billion, underpinned by significant expansion in both interest and non-interest income streams:
- Fee and Commission Income surged 57.4% YoY to ₦16.54 billion, driven by strong transaction volumes across the Group’s asset management, trusteeship, and investment banking businesses.
- Investment Income grew 34.5% YoY to ₦11.32 billion, reflecting higher yields on financial assets and expanded investment portfolios amid favorable interest rate dynamics.
- Net Trading Income recorded a remarkable 185.3% jump, rising to ₦9.74 billion, underscoring improved market trading activities and valuation gains.
- Net operating income climbed 68% to ₦37.6 billion, while total revenue after fair value adjustments and impairments stood at ₦41.54 billion, consolidating strong topline momentum.
This broad-based revenue expansion highlights the Group’s ability to leverage its diverse business units for sustainable income generation, even amid macroeconomic uncertainty.
Profitability and Margins
- Operating Profit Before Tax increased 36% YoY to ₦23.1 billion, supported by efficient cost management and stronger income growth.
- Profit Before Tax (PBT) advanced 33.6% YoY to ₦25.0 billion, reflecting strong operating leverage and disciplined expense control.
- Profit After Tax (PAT) grew 32.4% YoY to ₦21.17 billion, translating to an annualized EPS of 157 kobo, up from 118 kobo a year earlier.
- Comprehensive Income rose sharply to ₦110.8 billion, driven largely by fair value gains of ₦89.6 billion on equity and debt investments measured at FVTOCI (Fair Value Through Other Comprehensive Income).
The Group’s consistent profitability underscores its operational efficiency and ability to generate superior returns from core businesses while maintaining a conservative risk posture.
Balance Sheet Overview
₦’000 30 Sept 2025 31 Dec 2024 % Δ
Total Assets 1,867,473,760 1,701,703,636 +9.7%
Investment Securities 1,152,566,712 1,133,596,685 +1.7%
Loans & Advances 66,955,539 59,021,818 +13.4%
Trade & Other Receivables 160,378,874 161,248,657 -0.5%
Cash & Cash Equivalents 474,439,204 337,013,523 +40.8%
Total Liabilities 1,637,561,059 1,568,200,370 +4.4%
Shareholders’ Fund 229,912,701 133,503,266 +72.2%
Interpretation:
- Total Assets grew by 9.7% to ₦1.87 trillion, reflecting increased liquidity, expansion in loans, and a larger investment portfolio.
- Cash and cash equivalents surged 40.8%, highlighting improved liquidity and strong cash flow management.
- Shareholders’ funds grew 72% to ₦229.9 billion, boosted by retained earnings and substantial fair value gains in investment portfolios.
- Investment securities, the largest component of the asset base, rose modestly by 1.7% to ₦1.15 trillion, underscoring prudent portfolio management.
- Borrowed funds declined by 12% to ₦357.3 billion, demonstrating improved funding efficiency and lower leverage levels.
United Capital’s balance sheet remains strong and liquid, providing a solid foundation for sustained business growth and financial stability.
Key Ratios
Ratio 9M 2025 9M 2024 Change
Return on Equity (ROE) 24% 20% +4pp
Return on Assets (ROA) 2.9% 2.3% +0.6pp
Cost-to-Income Ratio 44% 50% -6pp
Net Profit Margin 51% 57% -6pp
Earnings per Share (Kobo) 157 118 +33%
Interpretation:
- ROE improved to 24%, reflecting efficient capital deployment and strong internal profitability.
- Cost-to-Income ratio improved by 6 percentage points to 44%, underscoring efficient cost containment despite inflationary pressures.
- Net Profit Margin remained strong at 51%, although slightly lower due to higher operating expenses and fair value adjustments.
Strategic Insights
- Diversified Revenue Model: Strong contributions from fee-based income and trading activities mitigate earnings volatility and reinforce resilience.
- Strong Investment Performance: Significant fair value gains demonstrate effective market positioning and active portfolio management amid capital market upswings.
- Operational Efficiency: Improved cost discipline and streamlined operations continue to enhance profitability metrics.
- Prudent Risk Management: Positive impairment write-backs and minimal credit losses reflect sound underwriting standards and effective risk controls.
- Capital Strength: Growing equity base and reduced leverage enhance financial flexibility and capacity to fund future expansion.
Strengths
- Exceptional growth in fee and trading income.
- Robust liquidity position and capital adequacy.
- Effective cost management leading to margin expansion.
- Record fair value gains boosting total comprehensive income.
- Strong diversification across business lines.
Weaknesses
- Volatility in fair value gains may introduce earnings fluctuations.
- Decline in other income and moderate Q3 profit signal potential earnings normalization.
- Slight contraction in receivables may indicate tighter client funding activity.
Outlook
The outlook for United Capital Plc remains favorable, supported by a resilient macroeconomic recovery, rising yields, and deepening capital market activities. The Group is strategically positioned to capture growth opportunities in investment banking, asset management, and consumer finance.
Continued digital transformation, strategic partnerships, and product innovation are expected to enhance scalability and customer acquisition. However, near-term risks include market volatility, interest rate fluctuations, and inflationary pressures, which may impact funding costs and asset valuations.
Despite these challenges, United Capital’s strong balance sheet, diversified earnings base, and proven management execution position it for sustained profitability and superior shareholder returns in FY2026.
Analyst Commentary
“United Capital Plc has once again demonstrated remarkable earnings resilience, combining strong core profitability with record fair value gains to deliver over ₦110 billion in total comprehensive income. The Group’s consistent fee income growth, robust balance sheet, and disciplined risk management affirm its strategic leadership in Nigeria’s investment banking space. Looking ahead, United Capital’s diversified model, liquidity strength, and market depth provide a compelling platform for continued growth and value creation.”
Conclusion
United Capital Plc’s nine-month 2025 results reaffirm its status as a high-performing and resilient financial powerhouse within Nigeria’s non-bank financial services sector. The combination of strong earnings growth, record comprehensive income, and robust balance sheet expansion reflects prudent management, operational efficiency, and a well-executed diversification strategy. With its sustained focus on innovation, digital expansion, and investment excellence, United Capital Plc remains well-positioned to deliver long-term shareholder value and consolidate its leadership in the African financial services landscape.
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Disclaimer
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