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United Capital Plc Sustains Growth in Earnings and Profitability July 19, 2018

Lagos, Nigeria, 19, July 2018 – United Capital Plc, a leading Pan-African Investment Banking Group, announced its Unaudited 2018 Half Year Financial Results, showing gross earnings of N3.9 billion and Profit Before Tax of N2.4billion, a slight increase from Half year 2017.

United Capital sustained growth in earnings and profitability despite a challenging macroeconomic environment. In spite of higher oil prices. GDP growth came in slower than expected in Q1-2018 as activities in the services sector of the Nigerian economy continue to constrain overall growth. Also, events in the global space reversed the pace of foreign portfolio inflow into the local market amid rising interest rates in the US and increased trade tension. Average yield in the fixed income market moderated to 13.4% in June 2018, down 69bps compared to December 2017. lowering earnings yields for most financial services outfits.

Additionally, the equities market closed the period flattish as the euphoria which greeted the beginning of the year fizzled out in the later part as investors took a flight to safety. Nevertheless, the Group sustained growth in revenue and profitability, buttressing the firm’s commitment to delivering superior value to shareholders always.

Commenting on the results, the Group CEO, Peter Ashade said; United Capital continues to pursue a clear and consistent strategy, which will always deliver a strong performance for shareholders, and we remain positive about our future opportunities within the Nigerian and African market, not- withstanding the challenging macro-economic environment.

HIGHLIGHTS OF THE RESULT:
Income Statement:
• Gross Earnings: N3.88billion, compared fa N3,87biIlion in H1 2017.
• Operating Expenses: N1.49biIlion, compared to N1.5biIIion in H120l 7.
• Profit Before Tax: N2.39biIIion, compared to N2.38biIlion in H1 2017.
• Profit for the Period: N2.01billion, compared to N1.99biIIion in H1 2017.

Balance Sheet:
• Total Assets: N135.3biIlion, compared to Nl36.6biIlion as at FY 2017.
• Funds under Management: N68.8biIIion, compared to N70.5biIIion
as at FY 2017.
• Shareholders' Funds: N18.3bilIion, compared to N16.8bn as at FY 2017.