United Capital Plc reduced its borrowings by N52.2 billion in the first nine months of 2026, while cash and cash
United Capital Plc reduced its borrowings by N52.2 billion in the first nine months of 2026, while cash and cash equivalents more than doubled to N618.1 billion, signalling a shift in its balance-sheet position as the investment group strengthened profitability and shareholders’ funds.
The group’s unaudited financial statements for the nine months ended September 30, 2026, show that borrowed funds fell 14 percent to N320.08 billion from N372.30 billion at the end of December 2025, while cash holdings surged 115 percent from N287.10 billion over the same period.
The contrasting movements helped reshape the group’s financial position, with total liabilities declining to N1.58 trillion from N1.61 trillion despite an increase in managed funds and a modest expansion in total assets.
The figures come as United Capital recorded stronger earnings, with profit before tax rising 66 percent year-on-year to N41.58 billion in the first nine months of 2026, compared with N25.01 billion in the corresponding period of 2025.
Gross earnings increased 50 percent to N62.47 billion from N41.54 billion, while profit after tax climbed 65 percent to N34.83 billion from N21.17 billion.
The group’s improved earnings were driven largely by investment-related income. Net investment income nearly doubled to N22.03 billion from N11.32 billion, while fee and commission income rose 27 percent to N20.95 billion. Net trading income also increased 29 percent to N12.60 billion.
However, the increase in cash holdings occurred alongside a reduction in investment securities, which declined to N1.07 trillion at the end of September from N1.34 trillion in December 2025.
This suggests a substantial change in the composition of the group’s assets, with more funds held in cash and fewer in investment securities. The financial statements do not specify the individual transactions responsible for the shift or establish whether the cash increase directly funded the reduction in borrowings.
United Capital’s total assets rose 3 percent to N1.81 trillion from N1.76 trillion at the end of 2025, while shareholders’ funds increased 58 percent to N237.08 billion from N150 billion.
The growth in shareholders’ funds was driven primarily by a 76 percent increase in fair value reserves and a 38 percent rise in retained earnings, according to the company.
Managed funds also grew 4 percent to N1.04 trillion from N993.64 billion, reflecting an expansion in the funds under its management.
Despite the stronger financial position, the group’s liabilities remain substantial relative to its reported cash holdings. Total liabilities stood at N1.58 trillion at the end of September, compared with N1.61 trillion at the end of December 2025.
Operating costs also increased during the review period. Total expenses rose to N23.51 billion from N18.40 billion a year earlier, although the increase was outpaced by revenue growth.
Peter Ashade, group chief executive officer of United Capital, said the company ended the third quarter with strong earnings growth and improved performance across key financial indicators.
He said the group would focus on execution, sustainable growth, and long-term value creation for shareholders in the final quarter of the year.
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Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.