United Capital Plc recorded a 66.24% increase in pre-tax profit to N41.58 billion for the nine months ended September 2026, compared with N25.01 billion in the corresponding period of 2025, driven largely by a surge in investment income.
This is according to the company’s unaudited consolidated financial statements filed with the Nigerian Exchange (NGX) on Monday, October 26, 2026, which showed gross earnings increasing by 50.37% to N62.47 billion from N41.54 billion.
Profit after tax rose by 64.51% to N34.83 billion from N21.17 billion, while earnings per share increased to 258 kobo from 157 kobo.
Investment Income surges 94.65%:
Net investment income emerged as United Capital’s largest earnings contributor during the nine-month period, increasing by 94.65% to N22.03 billion from N11.32 billion.
The increase pushed investment income above fee and commission income, while net operating income rose by 47.82% to N55.58 billion from N37.60 billion.
- Fee and commission income increased by 26.63% to N20.95 billion from N16.54 billion, while net trading income rose by 29.40% to N12.60 billion from N9.74 billion.
- Operating expenses increased by 27.80% to N23.51 billion from N18.40 billion, remaining below the growth recorded in net operating income.
- Impairment charges declined by approximately 61% to N366.97 million from N940.65 million, with all charges classified as Stage 1 and no Stage 2 or Stage 3 impairment charges.
- Operating profit before tax rose by 68.31% to N38.96 billion, while the N2.63 billion share of profit from associates contributed to the N41.58 billion pre-tax profit.
The company’s estimated income tax charge stood at N6.75 billion, representing an effective tax rate of approximately 16%, while total comprehensive income declined by 8.54% to N101.34 billion due to lower fair-value gains on equity investments.
Q3 Pre-Tax Profit hits N16.80 billion:
United Capital maintained its earnings momentum in the third quarter of 2026, with pre-tax profit reaching approximately N16.80 billion.
The figure was derived by subtracting the company’s first-half results from its nine-month performance, as the financial statements did not provide a standalone third-quarter income statement.
- Nairametrics previously reported that United Capital recorded N24.78 billion in pre-tax profit during the first half of 2026, equivalent to an average of approximately N12.4 billion per quarter.
- Third-quarter profit after tax stood at approximately N13.73 billion, representing an increase of about 48% from N9.28 billion in the corresponding period of 2025.
- Gross earnings for the quarter reached approximately N24.98 billion, up roughly 40% from N17.78 billion a year earlier.
- The third-quarter pre-tax profit exceeded the average quarterly performance recorded during the first half, reflecting continued earnings growth during the period.
The improvement also came as United Capital maintained growth across investment income, fees and trading activities, supported by lower impairment charges.
Cash Holdings more than double:
United Capital’s balance sheet showed a significant improvement in liquidity, with cash and cash equivalents increasing by 115.28% to N618.08 billion as of September 30, 2026.
- Total assets rose modestly by 2.96% to N1.81 trillion from N1.76 trillion at the end of December 2025, while investment securities declined by 20.66% to N1.07 trillion.
- Total liabilities declined by 2.16% to N1.58 trillion from N1.61 trillion, while managed funds increased by 4.45% to N1.04 trillion.
- Shareholders’ funds increased by 58.06% to N237.08 billion from N150 billion, supported by retained earnings of N73.62 billion and fair-value reserves of N153.55 billion.
- Regulatory capital rose to N556.76 billion from N522.01 billion, reflecting an improvement in the company’s capital position.
- Borrowed funds declined by 14.03% to N320.08 billion, comprising N281.79 billion in bank and financial institution loans, a N26.61 billion overdraft and N11.67 billion in bonds.
The company reported no outstanding commercial paper and no default on principal or interest payments.
The movement from investment securities into cash indicates a more liquid asset mix, with the 66% growth in pre-tax profit significantly exceeding the modest increase in total assets.
United Capital shares decline 11.5%:
Despite the improvement in earnings, United Capital’s share price declined by approximately 2.1% to N16.55 on Monday, October 26, 2026, from N16.90 at the previous trading session.
The decline represented a loss of 35 kobo per share following the release of the company’s nine-month financial results.
- United Capital began 2026 at N18.70 per share but had declined by approximately 11.5% as of October 26, ranking 101st on the NGX in year-to-date performance.
- At N16.55 per share, the company’s 18 billion outstanding shares represented a market capitalisation of approximately N298 billion.
- This compared with a market capitalisation of N334.8 billion on July 27, when the stock traded at N18.60 per share.
- The nine-month results highlight broad-based earnings growth, supported by stronger investment income, lower impairment charges and improved liquidity.
However, with investment income now the company’s largest earnings contributor, future profitability remains exposed to changes in interest rates and market conditions.
Sustaining earnings growth will therefore depend partly on the company’s ability to maintain investment returns while controlling operating expenses and preserving its stronger balance-sheet position.