A Year of Unparalleled Growth
Peter Ashade, the Group CEO of United Capital
United Capital Plc (UCAP) has cemented its reputation as a dominant force in Nigeria’s financial sector, closing 2024 with extraordinary profit growth and shareholder rewards. Over the past seven years, the company has maintained an impressive upward trajectory, but 2024 proved to be a defining moment, with Profit After Tax (PAT) soaring by 111.03%, from N11.42 billion in 2023 to N24.10 billion in 2024.
In a historic move, United Capital introduced its first-ever interim dividend of 90 Kobo per share, reflecting its exceptional financial strength and commitment to shareholder returns. The company also executed a 2-for-1 bonus share issuance, increasing its total outstanding shares from 6 billion to 18 billion. This strategic move significantly enhanced shareholder value, as investors received two additional shares for every one previously held.
The company continued its tradition of rewarding shareholders, declaring a final dividend of 50 Kobo per share for the 2024 financial year. This brought the total dividend per share for 2024 to N2.40, reinforcing United Capital’s position as a consistent wealth creator.
A Decade of Dividend Growth and Strong Returns
United Capital’s dividend policy has demonstrated remarkable consistency and growth, with total dividend payouts reaching N14.4 billion in 2024, a 44% increase from N10 billion in 2023. Over the last 10 years, the company’s dividend distribution has skyrocketed by 860%, growing from 25 Kobo per share in 2014 to N2.40 per share in 2024.
Financial Milestones Driving Success in 2024
- Gross earnings surged by 82.50%, fueled by income from loans, dividend income from securities, and interest from placements and bonds, underscoring the company’s dynamic investment strategy.
- Fee and commission income grew by 80.18%, reinforcing United Capital’s industry leadership in financial advisory and transactional services.
- Net trading income increased by 61.17%, driven by gains from the sale of financial instruments.
- Net gain on financial assets at fair value rose by 18.77%, reflecting the company’s strong asset management strategy.
Cost Efficiency and Profitability
- Total expenses dropped by 45.51%, demonstrating the company’s efficiency in cost management.
- Total expenses-to-gross earnings ratio fell by 63.26%, a significant improvement from the 36.20% drop recorded in 2023.
- Profit before tax jumped by 73.96%, reflecting continued operational efficiency.
- Net profit surged by 111.06%, ensuring higher value creation for stakeholders.
Looking Ahead: Sustaining Growth in 2025 and Beyond
As United Capital steps into the 2025 financial year, it remains committed to sustaining its impressive performance, strengthening its market leadership, and unlocking new opportunities within Nigeria and across Africa. With a solid foundation, strategic expansion, and a track record of exceptional returns, the company is well-positioned for even greater achievements in the years ahead.
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