United Capital Reports 44% Rise In Dividend Payout

United Capital Plc has announced a 44 per cent increase in its total dividend payout for the 2024 financial year, rising from N10bn in 2023 to N14.4bn.

This brings the total dividend per share to N2.40, following the company’s financial performance.

The financial services group introduced its first-ever interim dividend of 90 Kobo per share in 2024 and has proposed a final dividend of 50 Kobo per share, reinforcing its commitment to shareholder value.

Additionally, United Capital executed a 2-for-1 bonus share issuance, increasing outstanding shares from 6 billion to 18 billion, a strategic move aimed at enhancing shareholder participation.

Over the last decade, its dividend payouts have surged by 860 per cent, growing from 25 Kobo in 2014 to N2.40 in 2024.

United Capital’s growth was driven by a surge in Profit After Tax (PAT), which more than doubled from N11.42bn in 2023 to N24.10bn in 2024, reflecting a 111.03 per cent increase.

Gross earnings increased by 82.50 per cent, fueled by higher income from loans, dividend earnings from securities investments, and interest from placements and bonds.

Fee and commission income also rose by 80.18 per cent, reflecting the company’s strength in financial advisory services. Net trading income saw a 61.17 growth, while net gains on financial assets at fair value through profit and loss increased by 18.77 per cent.

The company’s total expenses dropped by 45.51 per cent. This led to a decline in the expense-to-gross earnings ratio, which fell from 36.20 per cent in 2023 to 63.26 per cent in 2024.

Profit before tax rose by 73.96 per cent, while net profit for the year climbed by an outstanding 111.06 per cent.

United Capital Reports 44% Rise In Dividend Payout is first published on The Whistler Newspaper