www.unitedcapitalplcgroup.com
Investors and Analysts PresentationFor the Period Ended September 30th 2020
www.unitedcapitalplcgroup.com
Disclaimer
• From time to time, United Capital Plc (“UCAP”) or the (“Group”) make written and/or oral forward-looking statements in presentations (including thispresentation) and other communication. In addition, representatives of the Group may make forward-looking statements orally to analysts, investors,the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to,statements regarding the Group’s objectives and priorities for 2020, and beyond and strategies to achieve them, and the Group’s anticipatedfinancial performance. Forward looking statements are typically identified by words such as “will”, “should”, “believe”, “expect”, “anticipate”, “intend”,“estimate”, “may”, “project” and “could”.
• By their very nature, these statements require the Group to make assumptions and are subject to inherent risks and uncertainties, general and specific.In the light of uncertainties related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyondthe Group’s control and the effects of which are difficult to predict – may cause actual results to differ materially from the expectations expressed inthe forward-looking statements. Risk factors that could cause such differences include, exchange rate, market exchange, and interest rate,operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as wellas other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to theGroup and we caution readers not to place undue reliance on the forward-looking statements.
• Any forward looking statements contained in this presentation represent the views of management only as at the date hereof and are presented forthe purpose of assisting the Group’s investors and analysts in understanding its financial position, objectives and priorities and anticipated financialperformance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. United Capital Plc does notundertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except asrequired under applicable securities legislation.
• The information used in this presentation were obtained from several sources that the Group believes are reliable. Whilst United Capital Plc has takenall reasonable care to ensure the accuracy of the information herein, neither United Capital Plc nor any of its subsidiaries/affiliates makesrepresentation or warranty, express or implied, as to the accuracy and correctness of the information. Thus, users are hereby advised to exercisecaution in attempting to place reliance on these information and carry out further research or seek the opinion of professional advisers beforereaching conclusions regarding their investment decisions.
20-28
16-19
www.unitedcapitalplcgroup.com
Outline
04-15
Operating environment
Overview
Financial Review
Corporate Strategy
Appendix
THIRD
QUARTER
2020
32-34
29-31
www.unitedcapitalplcgroup.comPage 5
A-Rating
DataPro
A-Rating
Agusto
Strong Presence in Nigeria
and GhanaN211.5bn
Total Assets
N20.1bnTotal Shareholder Funds
50,000+
Accounts
> N302bn
Funds Under
Management
N7.07bnGross Earnings
58%PBT Margin
1stBond Issuance by a
Capital Market
Operator in Nigeria
260,000+
Shareholders
A leading financial services group
www.unitedcapitalplcgroup.comPage 6
UNITED CAPITAL PLC
Investment Banking
Asset management
100%
Securities
100%
Trustees
100%
Consumer Finance
100%
▪ Private Trusts
▪ Public Trusts (Bond & Collective
Investment Schemes)
▪ Corporate Trust (Debentures &
Consortium Lending)
▪ Portfolio Management
▪ Investment Advisory
▪ Wealth Management
▪ Mutual Funds
▪ Securities Dealing
▪ Equity Portfolio Management
Service
▪ Designated Adviser to SMEs
▪ Stockbrokers to Primary Issues
▪ Easy Loans for Salary Earners
▪ Asset-Backed Loans
▪ Debt Capital Market
▪ Equity Capital Market
▪ Project Finance
▪ Mergers & Acquisition
▪ Structured Finance
The Group at a Glance
www.unitedcapitalplcgroup.comPage 7
Though United Capital operates out of Lagos, Abuja, Ibadan and Port-Harcourt in Nigeria, we have unlimited access to our customers due to our
ability to leverage on UBA’s reach across 20 other African countries and key global financial centres including London, Paris and New York.
United Capital is transforming the African continent by providing innovative investment banking solutions to
governments, companies and individuals.
OUR PURPOSE
To be the financial and investment role model across Africa, deploying innovation, technology and specialist skills to exceed
client expectations, whilst creating superior value for all stakeholders.
OUR CORPORATE
GOALS
We are focused on managing our client’s investments with a fundamental approach,
while adhering to robust risk control processes and procedures to protect and
enhance their assets.
CULTURE CODE
Our Core Values
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2000-2002 2012-2013 2015-2016 2019
2005-2007 2014 2017 2020
• Change of name from UBA Capital to
United Capital PLC.
• Lead Issuing House & Underwriter to the
N30.50 billion bond for a Tier I Nigerian
bank.
• We spun off from UBA PLC Group to
become UBA Capital PLC.
• We successfully listed on the Nigerian
Stock Exchange on January 11, 2013
and we became the first listed
Investment Bank in Nigeria. An equity
capital of N1.8 Billion was raised by
way of rights Issue.
• Structured the US$250 million Tranche One
Crude pre-payment facility for the
Democratic Republic of Congo-based Orion
Oil.
• Divested stake in United Metropolitan Life.
• Local book runner to the US$300
million FGN Diaspora Bond.
• Launched US$10 million Eurobondfund and ₦2bn Wealth for women
fund.
• The Group’s market capitalization
stood at N12.6 billion as at 17th Oct,
2019.
• Shareholders’ Fund stood at over
N19.59 Billion.
• Expanded in Operations to Ghana.
• Started out as United Bank Global
Markets, a division in UBA PLC.
• We were Incorporated as UBA
Capital, a subsidiary of UBA Plc in
March 14, 2002.
• Established United Metropolitan Life, a
joint venture with Metropolitan
International Holdings.
• Lead Arranger to the First Mortgage
Securitisation in Nigeria involving a
US$130.6m mortgage-backed bond.
• United Capital Mutual Funds crossedthe ₦100 billion mark as at Q3 2020.
• Processed over ₦848 million worth of
transactions on the InvestNow
Platform.
• Full commencement of consumer
finance business (disbursing over₦1.35 billion in September 2020)
• Raised ₦10 billion in bond issuance
The Journey so far
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United Capital Plc’s activities are directed by a strong and experienced Management team overseen by a distinct Board of Directors.
Tokunbo AjayiManaging Director,
United Capital Trustees
31 Years Trusteeship Experience
Peter AshadeGroup Chief Executive Officer
30 Years Capital Market Experience
(14 years as Chief Executive)
Leo OkaforGroup Company Secretary
21 Years Legal and
Financial Services Experience
Sunny AneneGroup Executive Director
27 Years Banking & Asset Management Experience
Shedrack OnakpomaGroup Chief Financial Officer
24 years Financial Management Experience
Babatunde ObaniyiManaging Director,
Investment Banking
(Resigned 30/10/2020)
16 Years Investment Banking and Finance experience
Bawo OritsejaforManaging Director,
United Capital Securities
20 Years Securities Trading and Stockbroking
Experience
Odiri OginniManaging Director,
United Capital Asset Management
14 Years Financial Services Experience
An experienced management team
www.unitedcapitalplcgroup.comPage 10
Real EstateFirst Mortgage Securitization in
Nigeria involving a US$130.6 Million
mortgage backed bond.
Offshore PartnershipEstablished strategic partnership
with an offshore financial services
provider for the purpose of gaining
access to offshore international
markets and optimization of
financial laws.
Power SectorFinancial Adviser on the first power
sector merger; engaged in raising
over US$490 Million in the Nigerian
Power Sector Privatization.
SovereignsFinancial Adviser to the Federal
Government of Nigeria on its debut
$300m Diaspora Bond. Also advisers
on a number of privatization
exercises.
ParastatalsFinancial Adviser to the first bond
restructuring in Nigeria and
participated in over 75% of the total
bond restructuring by sub-
sovereigns to date.
1
2
3
4
5
Milestones in our Investment Banking business
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TOP
RANKING
BUOYANT
EXPANSION
MILESTONEDIVERSIFIED
INVESTMENT
Grew the Net Asset Value of the
Mutual Funds by 180% between
Jan 2020 and September 2020 to ₦109bn
2
Managed ₦197bn of Investors
assets through Mutual Funds,
Privately Managed Funds and
Portfolio Management Services 4
Ranked 3rd largest in terms of
Mutual Funds Asset Under
Management with a market
share of 7.9%
1
United Capital Mutual Funds crossed the ₦100bn mark as at
Q3 2020
3
Our Asset Management business
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01 02 03
Public Trust• Bond/Notes Issuances, Collective
Investment Schemes and Real
Estate Investment Trusts.
• We secure and protect the
investors’ interest, monitor Issuers’
activities, and ensure their
compliance with the Investment
and Securities Act.
• We manage Sinking Fund/Debt
Service Repayment Accounts to
generate returns and ensure
timely payments of entitlements
to investors when due.
Corporate Trust• Our services also include
coordinating, drafting, perusing,
perfecting, and managing Trust
Deeds.
• We act as Trustee to lending
banks, providing centralized
documents, reducing perfection
charges and duplication of
Mortgages/ Debentures.
• As Trustees on Debenture and
Loan syndications, we advise on
a security structure for the
transaction which will support
affordable costs within the ambit
of the law.
Private Trust• Our Private Trust allows you
transfer assets to a set of
beneficiaries which are
typically named in a will or
Trust Deed.
• Our product and service
offerings include estate
planning, Living Trusts, Private
Investment Trust, Private
Inheritance Trust, Testamentary
Trusts, charities and
endowments.
Grew Private Trust size from ₦17.4 billion in June 2020
to
₦19.4 billionas at September 2020
Dec '19 Apr '20 Jun '20 Sep '20
8.8
14.917.4
19.4
Private Trust Size (₦'bn)
We play a key role in fiduciary transactions in the trustee business
www.unitedcapitalplcgroup.comPage 13
1
2
3
4
5
Successfully listed United Capital
Bond Fund on the floor of the
Nigerian Stock Exchange.
Introduction of United Capital Plc U-
lend product in conjunction with
United Capital Consumer Lending
business. It is expected to increase
business opportunities for both entities
once approved for launch.
Grew its revenue line by
over 58% QoQ, from₦0.37bn as at HY 2020 to
₦0.59bn at September end.
Automated UTrace on the InvestNow
platform – UTrace is a product
designed to assist investors to track
and unlock the value of all unclaimed
dividends or outstanding bonuses
from quoted companies in Nigeria.
Landmark achievements in our securities business
Appointment as the sole
stockbroker to Transcorp Hotels Plc
Rights Issue.
www.unitedcapitalplcgroup.comPage 14
▪ Acquired 13,282 customers in Q3 2020.
▪ Customer acquisition fell by 58% QoQ
from 31,825 in Q2 2020 to 13,282 in Q3
2020 due to higher tendencies of NPLs.
▪ Disbursed 17,092 loans to customers in Q3
2020.
▪ Loan count declined marginally by 4%
QoQ from 17,772 in Q2 2020 to 17,092 in
Q3 2020 due to the same reason.
▪ Disbursed a cumulative total of ₦1.36
billion in loans to customers in Q3 2020.
▪ Grew loan volume by 94% QoQ from ₦698
million in Q2 2020 to ₦1.36 billion in Q3
2020.
Q1 '20 Q2 '20 Q3 '20
360
698
1,357
in ₦
‘millio
n
Loan Volume
Q1 '20 Q2 '20 Q3 '20
12
18 17
in ₦
‘th
ou
san
d
Loan Count
Q1 '20 Q2 '20 Q3 '20
22
32
13
in ₦
‘th
ou
san
d
Customer Acquisition
Sustained growth in our Consumer Finance business
www.unitedcapitalplcgroup.comPage 15
InvestNow portal is an integrated, one-stop shop for financial services products. Based on information technology, it helps to ensure that we provide
investment services to people who are not able to walk into the four walls of our various offices to execute a transaction.
14,600+
Total Accounts
From 2017 till
date
13,200+
Number of
Individual Users
₦1.4 billion+
Value of
Transactions
Processed since
2017
₦848 million+
Value of
Transactions
Processed between
Jan. – Sep. 2020
Key Performance Metrics - InvestNow
www.unitedcapitalplcgroup.comPage 17
Global Economy
Source: OECD Interim Economic Outlook, Johns Hopkins, Trading Economics
Q2 2020 GDP and 2021 Growth Forecast World COVID-19 Status as at 10-Oct-2020
-23.9%-21.5%
-17.1%
-13.0%-11.4% -11.3%
-9.0% -8%-6.1%
3.2%
-4.4%
10.7%
7.6%
1.4%4% 3.6%
5.8%4% 5%
3%
8%
5%
Ind
ia
UK
S/A
frica
Ca
na
da
Bra
zil
Ge
rma
ny
USA
Ru
ssia
Nig
eria
Ch
ina
Wo
rld
Q2 2020 2021 F
▪ Although some economic indicators such as the Q2 GDP growth rate of mosteconomies indicates a global recession, international organizations such as theOECD are beginning to predict a less gloomy outlook for the world. It revised itsprojections in September from 2020 growth rate of -6.5% to -4.4%. This is on theback of countries’ easing of measures to contain the COVID-19 pandemic andthe initial re-opening of businesses around the world.
▪ China reported a 4.9% GDP growth rate in Q3 2020, up from the 3.2% growthrecorded in Q2 2020. It’s counterparts such as the US economy howevercontracted by -9% in Q2, UK economy by -21.5% and the Germany economy by-11.3%.
< 10,000
Cases
> 1 Million
Cases
Total cases: 37.80m
Active: 10.45m
Recovered: 26.27m
Deaths: 1.08m
www.unitedcapitalplcgroup.comPage 18
Nigeria in Q3 2020
COVID-19 In Nigeria
Confirmed cases
60,430
Active cases
7,372
Recovered cases
51,943
Deaths
1,115
There has been a significant reduction in the number of cases reported in Nigeria due to the lockdown measures and sensitization of the public.
Developments in the Nigerian Economy
CBN resumed sale of FX to
BDCs, but parallel market
remained volatile
Fuel subsidy was removed
and gasoline prices jumped to ₦160 per litre
CBN slashed Monetary
Policy Rate to 11.5% from
12.5%
Equities market
rebounded up to March
2020 levels
Lockdown was further
eased; airports, schools,
churches reopened
Labour threatened strike
action against electricity
tariff hike
The PIB was sent to the
House of Assembly,
proposing to scrap NNPC
and PPPRA
Federal government
adjusted electricity tariff
www.unitedcapitalplcgroup.comPage 19
Y-o-Y Inflation Rate
GDP Growth Rate (Annual)
❖ Q2 2020 GDP report showed that Nigeria’s GDP growth rate
was -6.1% in Q2 2020, 7.85% lower than that of Q1 2020 and
worst since Q1 2018.
❖ The OPEC+ coalition almost rebalanced the oil market via
its production cuts imposed on its members. However, Libya,
a non-OPEC nation, increased its output by 260,000 barrels
per day, causing oversupply in the global market.
Inflation Rate
❖ Inflation rate continued on its upward trend in September
2020, rising to 13.71% (August:13.22%) and is the highest
price increase in 30 months since April 2018.
❖ The rise was largely driven by a rise in food inflation which
stemmed from the continued border closure, restricted
access to forex, and loss of farm produce caused by heavy
rainfall.
Foreign Reserve/Oil Price
❖ Crude oil price has seen a modest recovery since the covid-
19 era when Brent crude price fell below $20. Demand for
oil rose as companies further reopened, driving Brent crude
to $40 pb.
❖ Given the increase in crude oil prices, Nigeria’s foreign
reserves temporarily increased, but the steep restrictions in
accessing foreign exchange in Nigeria slowed down the
growth of the reserves.
Interest Rates
❖ The Central Bank of Nigeria through the MPC cut its
monetary policy rate by 100 basis points to 11.5% from 12.5%
in September 2020, the lowest rate since 2016. This is
expected to stimulate economic growth and curtail the rise
in inflation rate.
❖ Also, average T-bills rate stayed low, owing to the continued
restriction of local participation in the OMO bills market.
-
5
10
15
20
25
30
35
40
45
50
0
10
20
30
40
50
60
70
80
Fo
reig
n R
ese
rve
s
Cru
de
Oil
Pric
es
Brent Crude ($ pb) WTI Crude ($ pb) Foreign Reserve ($ bn)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0%
2%
4%
6%
8%
10%
12%
Ja
n-1
9
Fe
b-1
9
Ma
r-19
Ap
r-19
Ma
y-1
9
Ju
n-1
9
Ju
l-19
Au
g-1
9
Se
p-1
9
Oc
t-19
No
v-1
9
De
c-1
9
Ja
n-2
0
Fe
b-2
0
Ma
r-20
Ap
r-20
Ma
y-2
0
Ju
n-2
0
Ju
l-20
Au
g-2
0
Se
p-2
0
MP
R
T-B
ills
T-Bills Rate Monetary Policy Rate
MPR and T-bill Rates
GDP Growth vs Crude Oil Production Foreign Reserves vs Crude Oil
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Food Inflation Core Inflation Headline Inflation
Macroeconomic Overview
Source: CBN, NBS, Proshare, OPEC, Oil Price
0
0.5
1
1.5
2
2.5
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
Oil P
rod
uc
tion
(mb
pd
)
GD
P g
row
th r
ate
Quarterly GDP Growth Rate Oil Production (mbpd)
www.unitedcapitalplcgroup.comPage 21
Fees & Commission
Income
₦2.25 billion
62% YoY
Gross Earnings
₦7.07 billion
33% YoY
Net Trading Income
₦125.2 million
61% YoY
Managed Funds
₦125.75 billion
74% YoY
Total Assets
₦211.53 billion
41% YoY
Financial Highlights
www.unitedcapitalplcgroup.comPage 22
Income StatementQ3-20₦’mn
Q3-19₦’mn
Change
Gross Earnings 7,069 5,323 +33%
Net Operating Income 6,760 4,291 +58%
Total Expenses 2,946 2,053 +44%
Profit Before Tax 4,123 3,270 +26%
Profit After Tax 3,464 2,747 +26%
▪ During the period, gross earnings increased by 33% as a result of strong
growth in fee and commission income (62% YoY), net trading income (61%
YoY), and investment income (55% YoY).
▪ The impact of COVID-19 and other economic variables called for necessary
provisions which caused total expenses to rise by 44%, due to increase in
depreciation and amortisation by 73%, impairment allowance rise of 270%,
personnel expenses increase of 5%, and 34% increase in other operating
expenses
▪ Despite income tax expense rising by 26%, PAT rose by 26% during the third
quarter, backed by a similar 26% increase in PBT.
Sept '19 Sept '20
5,323
7,069
Gross Earnings (₦’mn)
Sept '19 Sept '20
4,291
6,760
Net Operating Income (₦’mn)
Sept '19 Sept '20
3,270
4,123
Profit Before Tax (₦’mn)
Sept '19 Sept '20
2,747
3,464
Profit After Tax (₦’mn)
Income Statement Highlights
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Business Contribution to Revenue
BusinessQ3 2020 (₦’mn)
Q3 2019 (₦’mn)
Change
Investment Banking1,559 1,372 14%
Securities587 371 58%
Asset Management2,671 1,680 59%
Trustees2,121 1,899 12%
Consumer Finance130 - 100%
Total7,069 5,323 33%
26%
7%
32%
36%
0% 22%
8%
38%
30%
2%
IB Securities AML Trustees Consumer Finance
Inner hallow: Q3 2019 YTD Outer hallow: Q3 2020 YTD
www.unitedcapitalplcgroup.comPage 24
Sept '19 Sept '20
2,823
4,386
Investment Income (₦’mn)
+55% YoY
Sept '19 Sept '20
1,390
2,249
Fee and Commission Income
(₦’mn)
+62% YoY
Sept '19 Sept '20
53%62%
26%
32%1%
2%17%
6%
Revenue Composition
Investment Income Fee and Commission Income
Net Trading Income Other income
Gross Earnings Breakdown
▪ Investment income also increased by 55% YoY in Q3 2020, which indicative the Group’s sound investment strategy.
▪ Fee and Commission Income grew by 62% YoY in Q3 2020 despite the myriad of disruptions experienced in the Nigerian economy during the year.
▪ Net Trading Income expanded by 61% YoY in Q3 2020 when compared to the same period in 2019.
▪ Other Income was affected by a reduction in dividend on instruments, thus it declined by 65% YoY in Q3.
Sept '19 Sept '20
883
309
Other Income (₦’mn)
-65% YoY
Sept '19 Sept '20
78
125
Net Trading Income (₦’mn)
+61% YoY
www.unitedcapitalplcgroup.comPage 25
▪ During the period, total assets grew by 40.58% YTD as a result of
283% surge in cash and cash equivalents and 8.90% YTD increase in
trade & other receivables.
▪ Also, total liabilities rose by 46.28% YTD due to a 73.73% increase in
managed funds; other borrowed funds rose by 14.66%, and other
liabilities rose by 0.12%.
▪ Total shareholders fund appreciated by 2.52% YTD as a result of a
2.76% growth in retained earnings and 3.28% decline in negative
other reserves.
Income StatementQ3 ‘20₦’bn
Dec-19₦’bn
Change
Total Assets 211.5 150.5 +41%
Total Liabilities 191.4 130.9 +46%
Total Shareholders Fund 20.1 19.6 +2.52%
Managed Funds 125.8 72.4 +74%
Dec '19 Sept '20
19.6 20.1
Total Shareholders Fund (₦’mn)
+3% YoY
Dec '19 Sept '20
150.5
211.5
Total Assets (₦’mn)
+41% YoY
Dec '19 Sept '20
130.9
191.4
Total Liabilities (₦’mn)
+46% YoY
Dec '19 Sept '20
72.4
125.8
Managed Funds (₦’mn)
+74% YoY
Balance Sheet Highlight
www.unitedcapitalplcgroup.comPage 26
▪ Significant progress made in the improvement of
our operational efficiency and resilience as
evidenced by the 74% growth in funds under
management. This growth was funded through the
increases in short term investment placements, trust
funds and sinking funds.
▪ Cash and cash equivalents also appreciated by a
record 283% year-to-date, driven by an increase in
money market placements. This is a measure to
support our working capital and lending business,
and also provide protection during the economic
storms in the quarter.
Operational Resilience
Dec '19 Sept '20
72.4
125.8
Managed Funds (₦’ bn)
+74% YoY
Dec '19 Sept '20
30.1
115.4
Cash and cash equivalents (₦’ bn)
+283% YoY
Operational Resilience
www.unitedcapitalplcgroup.comPage 27
*Assets are depicted based on their contribution to total assets,
while liabilities are based on contribution to total liabilities.
Dec '19 Sept '20
20%
55%
63%
32%
0.2% 0.2%
17%13%
0.2% 0.1%0.0% 0.2%
Asset Analysis
Cash and cash equivalents Investment in financial assets
Property, Plant and equipment Trade and other receivables
Deferred tax assets Right of use assets
Dec '19 Sept '20
55%
66%
39%
30%
4% 3%1%1%0% 0%
Liabilities Analysis
Managed funds Other borrowed funds Other liabilities
Current tax liabilities Deferred tax liabilities
▪ Cash and cash equivalents appreciated by 283% as at Q3 2020 and it
contributed the most to total assets value at 55%.
▪ Contribution of investment in financial assets declined from 63% as at FY
2019 to 32% as at Q3 2020 due to the disposal of some financial assets.
▪ Trade and other receivables contributed less to total assets in Q3 2020,
dropping from 17% as at FY 2019 to 13% as at Q3 2020.
▪ Funds under management contributed the most to our total liabilities,
increasing by 7 percentage points from 55% as at FY 2019 to 62% as at Q3
2020.
▪ Other borrowed funds’ contribution reduced during the period under
review from 39% to 30% as at Q3 2020.
▪ The contributions of deferred tax and other liabilities remained minimal.
Balance Sheet Analysis
www.unitedcapitalplcgroup.comPage 28
▪ Return on Equity rose by 3.2 percentage
points YoY in Q3 2020 due to increased
PAT
▪ Return on Assets reduced by 0.19
percentage points YoY in Q3 due to
faster growth in total assets compared
to PAT
▪ Price-to-Book ratio grew by 54% in Q3
2020 due to 56% rise in share price YoY
▪ Price-Earnings ratio grew by 24% YoY in
Q3 due to a higher share price
▪ Cost-to-Income ratio expanded by 3.1
percentage points YoY due to a higher
rise in cost compared to revenue
▪ PAT Margin reduced by 2.6 percentage
points YoY from 51.6% in Q3 2019 to 49%
in Q3 2020.
Sept '19 Sept '20
1.83% 1.64%
Return on Assets
Sept '19 Sept '20
14.02%17.25%
Return on Equity
Sept '19 Sept '20
4.63
5.74
Price-Earnings Ratio
Sept '19 Sept '20
0.65
1.00
Price-to-Book Ratio
Sept '19 Sept '20
51.60%49.00%
PAT Margin
Sept '19 Sept '20
38.57%
41.67%
Cost-to-Income Ratio
Ratios Highlight
www.unitedcapitalplcgroup.comPage 30
We attempt to strategically grow our businesses…
Strengthen our B2C model to drive growth across all subsidiaries
Streamline Operational Delivery
Diversify Revenue through
Innovation
Enhance Client Experience and
Engagement
Optimize Resource Consumption
• Continue to deepen and expand the scope of our advisory capabilities
• Leverage more on collaboration and solidify partnerships with other financial institutions.
• Strategic play in high growth sectors in SME space – Agric; Tech.
• Expand our bouquet of unique products and services
• Sustain and improve relationship with clients
• Grow our Private Trust portfolio
• Alternative Fund Management to maximize Returns
• Increase the pool of our Strategic distribution Partners.
• Continue to deepen engagement with Capital Market Operators.
• Expand our product reach to the diaspora audience.
• Leverage on technology to achieve efficiency and scale.
• Intensify client acquisition and retention drive.
• Enhance the client trading platform.
• Improve revenue with focus on equity brokerage income.
• Improve our wholesale and retail business strategy.
• Improve loan application process and customer service.
• Expand the delivery channels and solidify our partnership models.
• Expand our bouquet of products to reach target clients.
Investment Banking Trustee Asset Management Security Trading Consumer Finance
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Digital Business • Enhance the features on the InvestNow platform and make the app more user friendly.
• Grow client base using all digital platforms.
Wealth Management• Expand the scope of our business offerings.
• Develop capabilities for open architecture that will ensure we meet our clients’
Wealth Management needs through proprietary or non-proprietary
products/services
Regional Businesses• Improve our business growth through the regional expansion initiative.
• Embark on deliberate marketing strategy to improve brand visibility across all the
regions where we operate.
Pan-Africa• Deepen our relationships with banks, development financial institutions (DFIs) and government agencies in
target sub-Saharan Africa countries.
• Position the Pan Africa business for potential M&A opportunities and deals on the African Continent.
…In line with the following business expansion initiatives.
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Statement of Comprehensive Income (in thousands of Nigerian Naira) September-20 September-19
Gross Earnings 7,069,171 5,322,666
Investment income 4,386,011 2,823,138
Fee and commission income 2,249,059 1,389,871
Net trading income 125,281 77,969
Net operating income 6,760,351 4,290,978
Other income 308,820 883,105
Net gains/(loss) on financial assets fair valued through profit or loss - 148,583
Total Revenue 7,069,171 5,322,666
Personnel expenses (1,186,744) (1,128,441)
Other operating expenses (1,325,890) (993,096)
Depreciation and amortization (159,546) (91,974)
Impairment allowance as a result of application of IFRS 9 (273,679) 160,759
Total expenses (2,945,859) (2,052,751)
Profit before income tax 4,123,312 3,269,915
Income tax expense (659,730) (523,187)
Profit for the period 3,463,582 2,746,728
Statement of Comprehensive Income
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Statement of Financial Position (in thousands of Nigerian Naira) September-20 December-19
ASSETS
Cash and cash equivalents 115,439,410 30,132,099
Investment in financial assets 67,277,875 94,141,566
Property, plant and equipment 318,403 357,118
Intangible assets 40,244 43,771
Right of use assets 389,813 312
Trade and other receivables 27,799,409 25,528,546
Deferred tax assets 260,184 260,184
TOTAL ASSETS 211,525,338 150,463,596
LIABILITIES
Managed funds 125,746,484 72,379,297
Other borrowed funds 58,335,218 50,876,737
Other liabilities 5,407,378 5,400,633
Current tax liabilities 1,306,411 1,569,828
Deferred tax liabilities 652,041 652,041
TOTAL LIABILITIES 191,447,532 130,878,536
SHAREHOLDERS’ FUND
Share capital 3,000,000 3,000,000
Share premium 683,611 683,611
Retained earnings 17,253,424 16,789,842
Other reserves (859,229) (888,394)
TOTAL SHAREHOLDERS’ FUND 20,077,806 19,585,060
TOTAL LIABILITIES AND SHAREHOLDERS’ FUND 211,525,338 150,463,596
Statement of Financial Position