United Capital CEO Calls Stock ‘Grossly Undervalued’ After 80% First-Half Profit Surge

…Buys 5% NGX Stake, Expands Insurance and Regional Footprint

United Capital Plc is trading well below its intrinsic value despite strong underlying earnings growth, geographic expansion, and strategic stakes in key market infrastructure, according to Group Chief Executive Officer Peter Ashade.

The Lagos-based financial services provider reported an 80% year-on-year increase in pre-tax profit for the first half of 2026, driven by revenue growth exceeding 50%. The performance was supported by expanding fee and commission income, higher investment yields, and digital infrastructure investments that helped trim the firm’s cost-to-income ratio to 44%.

Despite a 15-year cumulative return of over 2,500%, United Capital’s stock has declined 1.78% over the past 12 months, giving the group a market capitalization of ₦333 billion ($215 million). Ashade speaking at a conference call with investors, noted that value realization should accelerate through the second half of the year as strategic investments bear fruit.

Strategic Investments and Asset Expansion

United Capital expanded its corporate footprint during the period, acquiring a 5% equity stake in Nigerian Exchange Group Plc (NGX Group) and securing 25% holdings in two fast-growing domestic insurers. The company is also deepening its regional operations across East Africa, with active expansion underway in Ethiopia and Uganda.

Total assets reached ₦1.6 trillion across its pan-African operations, with income-earning assets accounting for more than 95% of the balance sheet. Return on assets stood at 2.48%, while managed funds expanded to over ₦994 billion from ₦327 billion in 2021.

Capital Allocation and Banking Ambitions

Following the H1 earnings performance, the company declared an interim dividend of 30 kobo per share, backed by an Earnings Per Share (EPS) of ₦2.34. Group shareholders’ funds stood at ₦150 billion at the end of the period.