Peter Ashade-led United Capital grows half-year profit to $15.5 million, declares interim dividend

United Capital, the Nigerian financial services group led by veteran investment banker Peter Ashade, reported a sharp increase in earnings in the first half of 2026, with profit after tax climbing above $15 million as stronger fee income, investment returns, and trading gains lifted performance across its core businesses. 

Profit before tax rose 80 percent year on year to N24.78 billion ($18.2 million) in the six months ended June 30, 2026, from N13.79 billion ($10.1 million) a year earlier. Net profit increased 77 percent to N21.1 billion ($15.45 million), according to the group’s unaudited financial statements. Following the results, the board approved an interim dividend of N5.4 billion ($3.95 million), equivalent to N0.30 ($0.00022) per share.

Broad revenue growth powers earnings jump

The stronger earnings were underpinned by broad-based revenue growth. Gross earnings climbed 58 percent to N37.49 billion ($27.5 million), up from N23.76 billion ($17.4 million) in the corresponding period of 2025. Net investment income increased 45 percent to N13.81 billion ($10.1 million), while fee and commission income rose 26 percent to N14.27 billion ($10.45 million). Trading income also improved sharply, jumping to N4.96 billion ($3.6 million) from N419.4 million ($0.31 million) in the same period last year.

Investment gains provided another boost to the group’s results. Net gains on financial assets measured at fair value through profit or loss (FVTPL) more than doubled to N4.67 billion ($3.41 million), compared with N2.01 billion ($1.47 million) a year earlier. Operating expenses rose 37 percent to N14.17 billion ($10.4 million), reflecting higher staff costs of N4.02 billion ($2.94 million) and increased administrative spending. The company also recorded a net impairment write-back of N362.1 million ($0.26 million), reversing credit losses of N507.95 million ($0.37 million) reported in the first half of 2025.

Pan-African expansion drives regional asset growth

The results come as United Capital continues to broaden its presence beyond Nigeria. The financial services group operates across investment banking, asset management, wealth management, trusteeship, securities trading, consumer lending and microfinance banking through subsidiaries including United Capital Asset Management Limited, United Capital Trustees Limited and UCEE Microfinance Bank Limited. It has secured regulatory approvals to expand into Ethiopia and Rwanda and recently acquired a 5 percent stake in Nigerian Exchange Group Plc valued at N18 billion ($13.2 million).

The group’s balance sheet remained solid despite changes in the composition of its assets. Total assets stood at N1.64 trillion ($1.2 billion) as of June 30, 2026, down 7 percent from N1.76 trillion ($1.28 billion) at the end of December 2025. The decline was largely driven by a 20 percent reduction in investment securities to N1.08 trillion, partly offset by a 40 percent increase in cash and cash equivalents to N400.8 billion ($294 million).

Client assets continued to grow during the period. Managed funds increased 4 percent to N1.04 trillion ($762 million), up from N993.64 billion ($730 million) at the end of 2025. Shareholders’ funds rose 25 percent to N187.09 billion ($137 million) from N149.99 billion ($110 million), supported by a 35 percent increase in fair value reserves and retained earnings of N59.89 billion ($44 million).