United Capital’s 9M 2026 pre-tax profit rises 66% to N41.58 billion as investment income nearly doubles

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.

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.

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.

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.

The improvement also came as United Capital maintained growth across investment income, fees and trading activities, supported by lower impairment charges.

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.

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.

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.

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.

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