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The board of directors of United Capital Plc has proposed a 35 kobo dividend to shareholders for the full year ended December 31, 2017.
However, the dividend is below 50 kobo that was paid in 2016.
The dividend will be paid to shareholders whose names appear on the register of members at the close of business on March 8, 2018, while closure of register is between March 31 and April 1; while payment would be subject to approval by shareholders when they meet on April 14, 2018.
Profit before tax was down by 12.9 percent from N6.37 billion in the preceding year to N5.6 billion; while tax expenses jumped by 518.17 percent to N1.185 billion, up from the previous N363.209 million, the bulk of which was the N720 million excess dividend tax, as income tax dropped from N211.679 million to N153.562m. This translated to an effective tax rate of 21.37 percent, up from the previous 5.7 percent further depressed net profit from N6.9 billion in 2016 to N4.4 billion, representing Earnings Per Share of 73 kobo, as against the previous 115 kobo.
Other details of the audited account shows that earnings growth was flat at N8.9 billion from N9 billion in the corresponding period of 2017, with investment income remaining the biggest contributor at N4.965 billion, up from N4.039 billion in the corresponding period of 2016; boosted by fixed deposits of N4.732 billion, up from N4.036 billion; just as investment securities fetched N232.552 million as against N2.919 million in 2016.
It was followed by fee and commission income, which dropped slightly from N1.979 billion to N1.813 billion, with financial advisory fees accounting for N778.482 million, a decline of N1.219 billion; while N1.034 billion came from other fees and charges, compared with N760.182 million in 2016.
Net trading income soared from N15.31million to N88.397 million; a feat that was not repeated in net interest margin, which plunged to N143.516 million to N640.319 million; as interest income on managed funds of N8.212 billion, as against N8.874 billion in prior year; even as interest expense on managed funds came to N8.073 billion from N8.234 billion; resulting in net operating income of N7.01 billion, up from N6.674 billion in the 2016 full year.
Other income dropped by N451.481 million or 19.41 percent to N1.874 billion from N2.325 billion, principally from miscellaneous income of N1.61 billion, representing a decline from N1.86 billion; and dividend on equity investment fell from N464.395 million to N264.094 million; net gains from financial assets held for trading stood at N30.384 million, an item that did not exist in prior year.
Photo Caption: Mrs Toyin Sanni Managing Director United Capital Plc
