United Capital an investment firm based in Lagos Nigeria kicked off the third quarter earnings season as it said profit for the nine months’ period to September 2020 rose 26 percent.
MoneyCentral’s analysis of the firms latest financials shows revenues from Investment income increased by 55 percent for the period to N4.38 billion, while fee and commission income surged 61 percent to N2.2 billion. Gains in Investment Income were led by Income from Managed funds which surged by 483 percent to N2.43 billion for the period.
United Capital operates up to six mutual funds including a money market fund, Nigerian Eurobond Fund and equity funds.
The firm was able to keep costs low for the period as Personnel expense was relatively flat at N1.18 billion compared to N1.12 billion in the earlier 2019 period.
Cash and cash equivalents on the books of the firm increased to N115.4 billion as money market placements surged.
Cash and cash equivalents comprise balances with less than three months’ maturity from the date of acquisitions, including cash in hand, deposits held at call with other banks and other short-term highly liquid investments with original maturities less than three months.
Total assets of the firm increased by 40 percent to N211 billion from N150.4 billion in the period.