UNITED CAPITAL : HALF YEAR 2024 EARNINGS PRESS RELEASE

UNITED CAPITAL PLC

UNAUDITED RESULTS FOR THE PERIOD ENDED JUNE 30, 2024

UNITED CAPITAL PLC DELIVERS OUTSTANDING PERFORMANCE

DECLARES N0.90 INTERIM DIVIDEND & BONUS SHARE OF "2 FOR 1" AS PROFIT SOARS 65%

LAGOS, NIGERIA - July 17, 2024 - United Capital Plc, (NGX: UCAP, Bloomberg: UCAP:NL,

Financial Times: UCAP: LAG) has announced its unaudited Financial Results for the period ended June 30, 2024. Gross earnings grew by 38% year-on-year to N15.15billion, profit before tax rose by 63% year-on-year to N9.06billion, profit after tax grew by 65% year-on-year to N7.74billion, total assets increased by 27% year-to-date to N1.19trillion while Shareholders' Funds grew by 33% year-to-date to N120.34billion.

	Earnings			HY 2024		HY 2023			Change
Gross Earnings (N'bn)	15.15	11.01		38%
PBT (N'bn)	9.06	5.54		63%
PAT (N'bn)	7.74	4.69		65%
	Financial Position			June 2024		December 2023			Change
Total Assets (N'bn)	1,185.63	931.95		27%
Total Liabilities (N'bn)	1,065.29	841.23		27%
Shareholders' Funds (N'bn)	120.34	90.71		33%
	Financial Ratios			HY 2024		HY 2023			Change
**EPS (kobo)	258	156		65%
*Price-Earnings Ratio	10.28	10.08		2%

*UCAP share price at 30/06/2024 **Annualized

Commenting on the Group's performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say:

"I am pleased to inform all stakeholders that United Capital Plc closed the first half of

the year on a strong note as evident in our impressive earnings growth and performance across key financial parameters.

For the first time ever, we declared interim dividend payment of N0.90 for every 50 kobo ordinary share, and Bonus Shares of "2 for 1". This affirms our commitment to wealth creation and superior value delivery to our shareholders.

We are assured about sustaining our performance in 2024 having kicked off the second half of the year 2024 in a robust financial position with close to N1.3trillion funds under management comprising trusts, mutual funds, and other professionally managed investments for our clients across diverse segments.

The Group is strongly positioned to deliver on our growth objectives while remaining competitive and sustainably profitable. We will continue to prioritise activities that create and preserve value for all our stakeholders into the foreseeable future."

1 | P a g e

This Earnings Press Release should be read in conjunction with the Unaudited Financial Statements for the period ended June 30th, 2024. The Earnings Press Release and the Unaudited Financial Statements for the period ended June 30th, 2024 are available on our website at https://www.unitedcapitaplclgroup.com/investor-relations/. This analysis is dated July 17th, 2024. Unless otherwise indicated, all amounts are expressed in the Nigerian Naira, and have been primarily derived from the Group's Financial Statements, prepared in accordance with the International Financial Reporting Standards ("IFRS"). The accounting policies used in the preparation of these financial statements are consistent with those used in the Group's Unaudited Financial Statements for the period ended June 30th, 2024. Additional information relating to the Group is available on the Group's website http://www.unitedcapitalplcgroup.com/

KEY PERFORMANCE HIGHLIGHTS

Income Statement:

• Gross Earnings: N15.15 billion in HY 2024, compared to N11.01 billion in HY 2023 (38% growth year-on-year)
• Operating expenses: N6.67 billion in HY 2024, compared to N5.75 billion in HY 2023 (16% growth year-on-year)
• Profit Before Tax: N9.06 billion in HY 2024, compared to N5.54 billion in HY 2023 (63% growth year-on-year)
• Profit After Tax: N7.74 billion in HY 2024, compared to N4.69 billion in HY 2023 (65% growth year-on-year)
• Annualized Earnings Per Share: 258 kobo in HY 2024, compared to 156 kobo in HY 2023 (65% growth year-on-year)

Statement of Financial Position:

• Total Assets: N1.19 Trillion, compared to N931.95 billion as at December 2023 (27% year-to-date growth)
• Total Liabilities: N1.07 Trillion, compared to N841.23 billion as at December 2023 (27% year-to-date growth)
• Shareholders Fund: N120.34 billion, compared to N90.71 billion as at December 31 2023 (33% year-to-date growth)

2 | P a g e

Gross Earnings (N' billion)	Profit After Tax (N' billion)
15.15
	7.74

	38%		65%
11.01
		4.69
HY 2023	HY 2024	HY 2023	HY 2024

Comparing HY 2024 with HY 2023, the following are worthy of note:

• Gross Earnings: During the period under review, gross earnings grew by 38% year- on-year to N15.15billion in HY 2024 compared to N11.01billion in HY 2023 majorly driven by growth in Fee and Commission income (+72% year-on-year), Net trading income (+183% year-on-year) and other income (+75% year-on-year).
• PBT and PAT: United Capital profit before tax rose by 63% year-on-year to N9.06billion while profit after tax grew by 65% year-on-year to N7.74billion driven by 38% growth in gross earnings.
• Total Assets: The Company's total assets increased by 27% year-to-date to N1.19 trillion in June 2024 compared to N931.95 billion in December 2023 majorly driven by 240% growth in cash and cash equivalents during the period under review.
• Total Liabilities: United Capital's total liabilities grew by 27% year-to-date to N1.07 trillion in June 2024 compared to N841.23 billion in December 2023 largely attributable to 31% year-to-date growth in managed funds and 212% year-to-date growth in other liabilities.
• Shareholders' Fund: During the period under review, United Capital's Shareholders' funds rose by 33% year-to-date to N120.34 billion in June 2024 compared to N90.71billion in December 2023 driven by 59% year-to-date growth in fair value reserve.
• Corporate Action:
• • The Board approved first ever interim dividend of N0.90k per share.
  • The Board also approved a Bonus share of 2 for 1 ordinary share.

COMPANY UPDATE:

Following the release of our HY 2024 result, we shall be hosting an Investors and Analysts conference call on 30th July 2024 to discuss our performance and overall outlook for the next quarter of 2024.

3 | P a g e

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD

ENDED 30 JUNE 2024

	30 June 2024	30 June 2023
	=N=' 000	=N=' 000
Gross Earnings	15,147,839	11,014,419
Investment income	4,692,683	4,962,573
Fee and commission income	6,308,610	3,672,553
Net trading income	1,762,696	622,599
Net operating income	12,763,989	9,257,725
Other income	1,980,628	1,128,910
Net gain/(loss) on financial assets at fair value through profit	403,222	627,784
or loss
Total Revenue	15,147,839	11,014,419
Personnel expenses	(2,287,971)	(1,357,678)
Other operating expenses	(4,668,149)	(3,032,809)
Depreciation of property and equipment	(87,774)	(96,971)
Amortization of intangible & right of use assets	(74,838)	(63,289)
Impairment for credit losses	451,582	(1,194,795)
Total Expenses	(6,667,151)	(5,745,542)
Operating profit before income tax	8,480,689	5,268,877
Share of accumulated profit of associates	576,863	274,535
Profit before income tax	9,057,552	5,543,412
Income tax expense	(1,320,659)	(854,160)
Profit for the period	7,736,894	4,689,251
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or
loss
Fair value gain on investments in equity instruments	27,717,180	19,166,711
measured at FVTOCI (net of tax)
Items that may be reclassified subsequently to profit or loss
Fair value gain on investments in debt instruments	(581,606)	692,375
measured at FVTOCI (net of tax)
Other comprehensive income for the period, net of taxes	27,135,574	19,859,087
Total comprehensive income for the period	34,872,468	24,548,338
Profit for the period attributable to:
Equity holders of the Company	7,736,894	4,689,251
Total comprehensive income attributable to:
Equity holders of the Company	34,872,468	24,548,338
Earnings per share-basic (kobo)	258	156
Earnings per share-diluted (kobo)	258	156

4 | P a g e

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

	30 June	31 December
	2024	2023
	=N=' 000	=N=' 000
ASSETS
Cash and cash equivalents	494,146,922	145,255,523
Investment securities	589,403,058	693,984,483
Trade and other receivables	93,423,367	85,463,551
Right of use assets	143,880	94,692
Intangible assets	769,908	188,615
Investments in associates	5,882,651	5,305,788
Property and equipment	1,456,647	1,253,484
Deferred tax assets	402,044	402,044
TOTAL ASSETS	1,185,628,479	931,948,180
LIABILITIES
Managed funds	785,724,958	600,106,217
Borrowed funds	180,988,595	200,822,968
Other liabilities	86,644,591	27,782,946
Defined benefit obligations	365,768	365,768
Current tax liabilities	2,363,938	2,950,806
Deferred tax liabilities	9,206,051	9,206,051
TOTAL LIABILITIES	1,065,293,900	841,234,755
SHAREHOLDERS FUND
Share capital	3,000,000	3,000,000
Share premium	683,611	683,611
Retained earnings	28,670,209	31,733,315
Fair value reserves	87,980,759	55,296,499
TOTAL SHAREHOLDERS FUND	120,334,579	90,713,425
TOTAL LIABILITIES AND SHAREHOLDERS FUND	1,185,628,479	931,948,180

5 | P a g e

EDITOR'S COMMENT

United Capital Plc is a leading Pan-African financial and investment services group, with a mission to provide bespoke and innovative value-added services to its client. The group aims to transform the African continent by providing innovative and creative investment banking solutions to governments, companies, and individuals.

The company which was listed on the Nigerian Stock Exchange on the 17th of January 2013 is setting the pace to becoming the financial and investment role model across Africa, by deploying innovation, technology, and specialist skills to exceed client expectations, while creating more value for all stakeholders.

As a pacesetter, United Capital is the first Investment Bank to be listed on the Nigerian Stock Exchange. It maintains a holding company structure with subsidiaries in the Consumer Lending, Trusteeship, Securities Trading and Asset Management business.

More information can be found at:http://www.unitedcapitalplcgroup.com/

For further enquiries:

Shedrack Onakpoma

Group Chief Financial Officer

[e-mail]

CAUTION REGARDING FORWARD LOOKING STATEMENTS

From time to time, the Group makes written and/or oral forward-looking statements, including in this press release and in other communications. 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 strategies to achieve them, and the Group's anticipated financial performance. Forward looking statements are typically identified by words such as "will", "should", "believe", "expect", "anticipate", "intend", "estimate", "may" and "could".

Any forward-looking statements contained in this presentation represent the views of management only as of the date hereof and are presented for the purpose of assisting the Group's investors and analysts in understanding the Group's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. The Group does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation

The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.

6 | P a g e