investors and analysts presentation

www.unitedcapitalplcgroup.com

Investors and Analysts PresentationFor the Period Ended September 30th 2020


Disclaimer

• From time to time, United Capital Plc (“UCAP”) or the (“Group”) make written and/or oral forward-looking statements in presentations (including thispresentation) and other communication. 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 priorities for 2020, and beyond and strategies to achieve them, and the Group’s anticipatedfinancial performance. Forward looking statements are typically identified by words such as “will”, “should”, “believe”, “expect”, “anticipate”, “intend”,“estimate”, “may”, “project” and “could”.

• By their very nature, these statements require the Group to make assumptions and are subject to inherent risks and uncertainties, general and specific.In the light of uncertainties related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyondthe Group’s control and the effects of which are difficult to predict – may cause actual results to differ materially from the expectations expressed inthe forward-looking statements. Risk factors that could cause such differences include, exchange rate, market exchange, and interest rate,operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as wellas other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to theGroup and we caution readers not to place undue reliance on the forward-looking statements.

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

• The information used in this presentation were obtained from several sources that the Group believes are reliable. Whilst United Capital Plc has takenall reasonable care to ensure the accuracy of the information herein, neither United Capital Plc nor any of its subsidiaries/affiliates makesrepresentation or warranty, express or implied, as to the accuracy and correctness of the information. Thus, users are hereby advised to exercisecaution in attempting to place reliance on these information and carry out further research or seek the opinion of professional advisers beforereaching conclusions regarding their investment decisions.

20-28

16-19


Outline

04-15

Operating environment

Overview

Financial Review

Corporate Strategy

Appendix

THIRD

QUARTER

2020

32-34

29-31


Q3 2020

Overview


A-Rating

DataPro

A-Rating

Agusto

Strong Presence in Nigeria

and GhanaN211.5bn

Total Assets

N20.1bnTotal Shareholder Funds

50,000+

Accounts

> N302bn

Funds Under

Management

N7.07bnGross Earnings

58%PBT Margin

1stBond Issuance by a

Capital Market

Operator in Nigeria

260,000+

Shareholders

A leading financial services group


UNITED CAPITAL PLC

Investment Banking

Asset management

100%

Securities

100%

Trustees

100%

Consumer Finance

100%

▪ Private Trusts

▪ Public Trusts (Bond & Collective

Investment Schemes)

▪ Corporate Trust (Debentures &

Consortium Lending)

▪ Portfolio Management

▪ Investment Advisory

▪ Wealth Management

▪ Mutual Funds

▪ Securities Dealing

▪ Equity Portfolio Management

Service

▪ Designated Adviser to SMEs

▪ Stockbrokers to Primary Issues

▪ Easy Loans for Salary Earners

▪ Asset-Backed Loans

▪ Debt Capital Market

▪ Equity Capital Market

▪ Project Finance

▪ Mergers & Acquisition

▪ Structured Finance

The Group at a Glance


Though United Capital operates out of Lagos, Abuja, Ibadan and Port-Harcourt in Nigeria, we have unlimited access to our customers due to our

ability to leverage on UBA’s reach across 20 other African countries and key global financial centres including London, Paris and New York.

United Capital is transforming the African continent by providing innovative investment banking solutions to

governments, companies and individuals.

OUR PURPOSE

To be the financial and investment role model across Africa, deploying innovation, technology and specialist skills to exceed

client expectations, whilst creating superior value for all stakeholders.

OUR CORPORATE

GOALS

We are focused on managing our client’s investments with a fundamental approach,

while adhering to robust risk control processes and procedures to protect and

enhance their assets.

CULTURE CODE

Our Core Values


2000-2002 2012-2013 2015-2016 2019

2005-2007 2014 2017 2020

• Change of name from UBA Capital to

United Capital PLC.

• Lead Issuing House & Underwriter to the

N30.50 billion bond for a Tier I Nigerian

bank.

• We spun off from UBA PLC Group to

become UBA Capital PLC.

• We successfully listed on the Nigerian

Stock Exchange on January 11, 2013

and we became the first listed

Investment Bank in Nigeria. An equity

capital of N1.8 Billion was raised by

way of rights Issue.

• Structured the US$250 million Tranche One

Crude pre-payment facility for the

Democratic Republic of Congo-based Orion

Oil.

• Divested stake in United Metropolitan Life.

• Local book runner to the US$300

million FGN Diaspora Bond.

• Launched US$10 million Eurobondfund and ₦2bn Wealth for women

fund.

• The Group’s market capitalization

stood at N12.6 billion as at 17th Oct,

2019.

• Shareholders’ Fund stood at over

N19.59 Billion.

• Expanded in Operations to Ghana.

• Started out as United Bank Global

Markets, a division in UBA PLC.

• We were Incorporated as UBA

Capital, a subsidiary of UBA Plc in

March 14, 2002.

• Established United Metropolitan Life, a

joint venture with Metropolitan

International Holdings.

• Lead Arranger to the First Mortgage

Securitisation in Nigeria involving a

US$130.6m mortgage-backed bond.

• United Capital Mutual Funds crossedthe ₦100 billion mark as at Q3 2020.

• Processed over ₦848 million worth of

transactions on the InvestNow

Platform.

• Full commencement of consumer

finance business (disbursing over₦1.35 billion in September 2020)

• Raised ₦10 billion in bond issuance

The Journey so far


United Capital Plc’s activities are directed by a strong and experienced Management team overseen by a distinct Board of Directors.

Tokunbo AjayiManaging Director,

United Capital Trustees

31 Years Trusteeship Experience

Peter AshadeGroup Chief Executive Officer

30 Years Capital Market Experience

(14 years as Chief Executive)

Leo OkaforGroup Company Secretary

21 Years Legal and

Financial Services Experience

Sunny AneneGroup Executive Director

27 Years Banking & Asset Management Experience

Shedrack OnakpomaGroup Chief Financial Officer

24 years Financial Management Experience

Babatunde ObaniyiManaging Director,

Investment Banking

(Resigned 30/10/2020)

16 Years Investment Banking and Finance experience

Bawo OritsejaforManaging Director,

United Capital Securities

20 Years Securities Trading and Stockbroking

Experience

Odiri OginniManaging Director,

United Capital Asset Management

14 Years Financial Services Experience

An experienced management team


Real EstateFirst Mortgage Securitization in

Nigeria involving a US$130.6 Million

mortgage backed bond.

Offshore PartnershipEstablished strategic partnership

with an offshore financial services

provider for the purpose of gaining

access to offshore international

markets and optimization of

financial laws.

Power SectorFinancial Adviser on the first power

sector merger; engaged in raising

over US$490 Million in the Nigerian

Power Sector Privatization.

SovereignsFinancial Adviser to the Federal

Government of Nigeria on its debut

$300m Diaspora Bond. Also advisers

on a number of privatization

exercises.

ParastatalsFinancial Adviser to the first bond

restructuring in Nigeria and

participated in over 75% of the total

bond restructuring by sub-

sovereigns to date.

1

2

3

4

5

Milestones in our Investment Banking business


TOP

RANKING

BUOYANT

EXPANSION

MILESTONEDIVERSIFIED

INVESTMENT

Grew the Net Asset Value of the

Mutual Funds by 180% between

Jan 2020 and September 2020 to ₦109bn

2

Managed ₦197bn of Investors

assets through Mutual Funds,

Privately Managed Funds and

Portfolio Management Services 4

Ranked 3rd largest in terms of

Mutual Funds Asset Under

Management with a market

share of 7.9%

1

United Capital Mutual Funds crossed the ₦100bn mark as at

Q3 2020

3

Our Asset Management business


01 02 03

Public Trust• Bond/Notes Issuances, Collective

Investment Schemes and Real

Estate Investment Trusts.

• We secure and protect the

investors’ interest, monitor Issuers’

activities, and ensure their

compliance with the Investment

and Securities Act.

• We manage Sinking Fund/Debt

Service Repayment Accounts to

generate returns and ensure

timely payments of entitlements

to investors when due.

Corporate Trust• Our services also include

coordinating, drafting, perusing,

perfecting, and managing Trust

Deeds.

• We act as Trustee to lending

banks, providing centralized

documents, reducing perfection

charges and duplication of

Mortgages/ Debentures.

• As Trustees on Debenture and

Loan syndications, we advise on

a security structure for the

transaction which will support

affordable costs within the ambit

of the law.

Private Trust• Our Private Trust allows you

transfer assets to a set of

beneficiaries which are

typically named in a will or

Trust Deed.

• Our product and service

offerings include estate

planning, Living Trusts, Private

Investment Trust, Private

Inheritance Trust, Testamentary

Trusts, charities and

endowments.

Grew Private Trust size from ₦17.4 billion in June 2020

to

₦19.4 billionas at September 2020

Dec '19 Apr '20 Jun '20 Sep '20

8.8

14.917.4

19.4

Private Trust Size (₦'bn)

We play a key role in fiduciary transactions in the trustee business


1

2

3

4

5

Successfully listed United Capital

Bond Fund on the floor of the

Nigerian Stock Exchange.

Introduction of United Capital Plc U-

lend product in conjunction with

United Capital Consumer Lending

business. It is expected to increase

business opportunities for both entities

once approved for launch.

Grew its revenue line by

over 58% QoQ, from₦0.37bn as at HY 2020 to

₦0.59bn at September end.

Automated UTrace on the InvestNow

platform – UTrace is a product

designed to assist investors to track

and unlock the value of all unclaimed

dividends or outstanding bonuses

from quoted companies in Nigeria.

Landmark achievements in our securities business

Appointment as the sole

stockbroker to Transcorp Hotels Plc

Rights Issue.


▪ Acquired 13,282 customers in Q3 2020.

▪ Customer acquisition fell by 58% QoQ

from 31,825 in Q2 2020 to 13,282 in Q3

2020 due to higher tendencies of NPLs.

▪ Disbursed 17,092 loans to customers in Q3

2020.

▪ Loan count declined marginally by 4%

QoQ from 17,772 in Q2 2020 to 17,092 in

Q3 2020 due to the same reason.

▪ Disbursed a cumulative total of ₦1.36

billion in loans to customers in Q3 2020.

▪ Grew loan volume by 94% QoQ from ₦698

million in Q2 2020 to ₦1.36 billion in Q3

2020.

Q1 '20 Q2 '20 Q3 '20

360

698

1,357

in ₦

‘millio

n

Loan Volume

Q1 '20 Q2 '20 Q3 '20

12

18 17

in ₦

‘th

ou

san

d

Loan Count

Q1 '20 Q2 '20 Q3 '20

22

32

13

in ₦

‘th

ou

san

d

Customer Acquisition

Sustained growth in our Consumer Finance business


InvestNow portal is an integrated, one-stop shop for financial services products. Based on information technology, it helps to ensure that we provide

investment services to people who are not able to walk into the four walls of our various offices to execute a transaction.

14,600+

Total Accounts

From 2017 till

date

13,200+

Number of

Individual Users

₦1.4 billion+

Value of

Transactions

Processed since

2017

₦848 million+

Value of

Transactions

Processed between

Jan. – Sep. 2020

Key Performance Metrics - InvestNow


Q3 2020

Operating

Environment


Global Economy

Source: OECD Interim Economic Outlook, Johns Hopkins, Trading Economics

Q2 2020 GDP and 2021 Growth Forecast World COVID-19 Status as at 10-Oct-2020

-23.9%-21.5%

-17.1%

-13.0%-11.4% -11.3%

-9.0% -8%-6.1%

3.2%

-4.4%

10.7%

7.6%

1.4%4% 3.6%

5.8%4% 5%

3%

8%

5%

Ind

ia

UK

S/A

frica

Ca

na

da

Bra

zil

Ge

rma

ny

USA

Ru

ssia

Nig

eria

Ch

ina

Wo

rld

Q2 2020 2021 F

▪ Although some economic indicators such as the Q2 GDP growth rate of mosteconomies indicates a global recession, international organizations such as theOECD are beginning to predict a less gloomy outlook for the world. It revised itsprojections in September from 2020 growth rate of -6.5% to -4.4%. This is on theback of countries’ easing of measures to contain the COVID-19 pandemic andthe initial re-opening of businesses around the world.

▪ China reported a 4.9% GDP growth rate in Q3 2020, up from the 3.2% growthrecorded in Q2 2020. It’s counterparts such as the US economy howevercontracted by -9% in Q2, UK economy by -21.5% and the Germany economy by-11.3%.

< 10,000

Cases

> 1 Million

Cases

Total cases: 37.80m

Active: 10.45m

Recovered: 26.27m

Deaths: 1.08m


Nigeria in Q3 2020

COVID-19 In Nigeria

Confirmed cases

60,430

Active cases

7,372

Recovered cases

51,943

Deaths

1,115

There has been a significant reduction in the number of cases reported in Nigeria due to the lockdown measures and sensitization of the public.

Developments in the Nigerian Economy

CBN resumed sale of FX to

BDCs, but parallel market

remained volatile

Fuel subsidy was removed

and gasoline prices jumped to ₦160 per litre

CBN slashed Monetary

Policy Rate to 11.5% from

12.5%

Equities market

rebounded up to March

2020 levels

Lockdown was further

eased; airports, schools,

churches reopened

Labour threatened strike

action against electricity

tariff hike

The PIB was sent to the

House of Assembly,

proposing to scrap NNPC

and PPPRA

Federal government

adjusted electricity tariff


Y-o-Y Inflation Rate

GDP Growth Rate (Annual)

❖ Q2 2020 GDP report showed that Nigeria’s GDP growth rate

was -6.1% in Q2 2020, 7.85% lower than that of Q1 2020 and

worst since Q1 2018.

❖ The OPEC+ coalition almost rebalanced the oil market via

its production cuts imposed on its members. However, Libya,

a non-OPEC nation, increased its output by 260,000 barrels

per day, causing oversupply in the global market.

Inflation Rate

❖ Inflation rate continued on its upward trend in September

2020, rising to 13.71% (August:13.22%) and is the highest

price increase in 30 months since April 2018.

❖ The rise was largely driven by a rise in food inflation which

stemmed from the continued border closure, restricted

access to forex, and loss of farm produce caused by heavy

rainfall.

Foreign Reserve/Oil Price

❖ Crude oil price has seen a modest recovery since the covid-

19 era when Brent crude price fell below $20. Demand for

oil rose as companies further reopened, driving Brent crude

to $40 pb.

❖ Given the increase in crude oil prices, Nigeria’s foreign

reserves temporarily increased, but the steep restrictions in

accessing foreign exchange in Nigeria slowed down the

growth of the reserves.

Interest Rates

❖ The Central Bank of Nigeria through the MPC cut its

monetary policy rate by 100 basis points to 11.5% from 12.5%

in September 2020, the lowest rate since 2016. This is

expected to stimulate economic growth and curtail the rise

in inflation rate.

❖ Also, average T-bills rate stayed low, owing to the continued

restriction of local participation in the OMO bills market.

-

5

10

15

20

25

30

35

40

45

50

0

10

20

30

40

50

60

70

80

Fo

reig

n R

ese

rve

s

Cru

de

Oil

Pric

es

Brent Crude ($ pb) WTI Crude ($ pb) Foreign Reserve ($ bn)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0%

2%

4%

6%

8%

10%

12%

Ja

n-1

9

Fe

b-1

9

Ma

r-19

Ap

r-19

Ma

y-1

9

Ju

n-1

9

Ju

l-19

Au

g-1

9

Se

p-1

9

Oc

t-19

No

v-1

9

De

c-1

9

Ja

n-2

0

Fe

b-2

0

Ma

r-20

Ap

r-20

Ma

y-2

0

Ju

n-2

0

Ju

l-20

Au

g-2

0

Se

p-2

0

MP

R

T-B

ills

T-Bills Rate Monetary Policy Rate

MPR and T-bill Rates

GDP Growth vs Crude Oil Production Foreign Reserves vs Crude Oil

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Food Inflation Core Inflation Headline Inflation

Macroeconomic Overview

Source: CBN, NBS, Proshare, OPEC, Oil Price

0

0.5

1

1.5

2

2.5

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

Oil P

rod

uc

tion

(mb

pd

)

GD

P g

row

th r

ate

Quarterly GDP Growth Rate Oil Production (mbpd)


Q3 2020

Financial

Review


Fees & Commission

Income

₦2.25 billion

62% YoY

Gross Earnings

₦7.07 billion

33% YoY

Net Trading Income

₦125.2 million

61% YoY

Managed Funds

₦125.75 billion

74% YoY

Total Assets

₦211.53 billion

41% YoY

Financial Highlights


Income StatementQ3-20₦’mn

Q3-19₦’mn

Change

Gross Earnings 7,069 5,323 +33%

Net Operating Income 6,760 4,291 +58%

Total Expenses 2,946 2,053 +44%

Profit Before Tax 4,123 3,270 +26%

Profit After Tax 3,464 2,747 +26%

▪ During the period, gross earnings increased by 33% as a result of strong

growth in fee and commission income (62% YoY), net trading income (61%

YoY), and investment income (55% YoY).

▪ The impact of COVID-19 and other economic variables called for necessary

provisions which caused total expenses to rise by 44%, due to increase in

depreciation and amortisation by 73%, impairment allowance rise of 270%,

personnel expenses increase of 5%, and 34% increase in other operating

expenses

▪ Despite income tax expense rising by 26%, PAT rose by 26% during the third

quarter, backed by a similar 26% increase in PBT.

Sept '19 Sept '20

5,323

7,069

Gross Earnings (₦’mn)

Sept '19 Sept '20

4,291

6,760

Net Operating Income (₦’mn)

Sept '19 Sept '20

3,270

4,123

Profit Before Tax (₦’mn)

Sept '19 Sept '20

2,747

3,464

Profit After Tax (₦’mn)

Income Statement Highlights


Business Contribution to Revenue

BusinessQ3 2020 (₦’mn)

Q3 2019 (₦’mn)

Change

Investment Banking1,559 1,372 14%

Securities587 371 58%

Asset Management2,671 1,680 59%

Trustees2,121 1,899 12%

Consumer Finance130 - 100%

Total7,069 5,323 33%

26%

7%

32%

36%

0% 22%

8%

38%

30%

2%

IB Securities AML Trustees Consumer Finance

Inner hallow: Q3 2019 YTD Outer hallow: Q3 2020 YTD


Sept '19 Sept '20

2,823

4,386

Investment Income (₦’mn)

+55% YoY

Sept '19 Sept '20

1,390

2,249

Fee and Commission Income

(₦’mn)

+62% YoY

Sept '19 Sept '20

53%62%

26%

32%1%

2%17%

6%

Revenue Composition

Investment Income Fee and Commission Income

Net Trading Income Other income

Gross Earnings Breakdown

▪ Investment income also increased by 55% YoY in Q3 2020, which indicative the Group’s sound investment strategy.

▪ Fee and Commission Income grew by 62% YoY in Q3 2020 despite the myriad of disruptions experienced in the Nigerian economy during the year.

▪ Net Trading Income expanded by 61% YoY in Q3 2020 when compared to the same period in 2019.

▪ Other Income was affected by a reduction in dividend on instruments, thus it declined by 65% YoY in Q3.

Sept '19 Sept '20

883

309

Other Income (₦’mn)

-65% YoY

Sept '19 Sept '20

78

125

Net Trading Income (₦’mn)

+61% YoY


▪ During the period, total assets grew by 40.58% YTD as a result of

283% surge in cash and cash equivalents and 8.90% YTD increase in

trade & other receivables.

▪ Also, total liabilities rose by 46.28% YTD due to a 73.73% increase in

managed funds; other borrowed funds rose by 14.66%, and other

liabilities rose by 0.12%.

▪ Total shareholders fund appreciated by 2.52% YTD as a result of a

2.76% growth in retained earnings and 3.28% decline in negative

other reserves.

Income StatementQ3 ‘20₦’bn

Dec-19₦’bn

Change

Total Assets 211.5 150.5 +41%

Total Liabilities 191.4 130.9 +46%

Total Shareholders Fund 20.1 19.6 +2.52%

Managed Funds 125.8 72.4 +74%

Dec '19 Sept '20

19.6 20.1

Total Shareholders Fund (₦’mn)

+3% YoY

Dec '19 Sept '20

150.5

211.5

Total Assets (₦’mn)

+41% YoY

Dec '19 Sept '20

130.9

191.4

Total Liabilities (₦’mn)

+46% YoY

Dec '19 Sept '20

72.4

125.8

Managed Funds (₦’mn)

+74% YoY

Balance Sheet Highlight


▪ Significant progress made in the improvement of

our operational efficiency and resilience as

evidenced by the 74% growth in funds under

management. This growth was funded through the

increases in short term investment placements, trust

funds and sinking funds.

▪ Cash and cash equivalents also appreciated by a

record 283% year-to-date, driven by an increase in

money market placements. This is a measure to

support our working capital and lending business,

and also provide protection during the economic

storms in the quarter.

Operational Resilience

Dec '19 Sept '20

72.4

125.8

Managed Funds (₦’ bn)

+74% YoY

Dec '19 Sept '20

30.1

115.4

Cash and cash equivalents (₦’ bn)

+283% YoY

Operational Resilience


*Assets are depicted based on their contribution to total assets,

while liabilities are based on contribution to total liabilities.

Dec '19 Sept '20

20%

55%

63%

32%

0.2% 0.2%

17%13%

0.2% 0.1%0.0% 0.2%

Asset Analysis

Cash and cash equivalents Investment in financial assets

Property, Plant and equipment Trade and other receivables

Deferred tax assets Right of use assets

Dec '19 Sept '20

55%

66%

39%

30%

4% 3%1%1%0% 0%

Liabilities Analysis

Managed funds Other borrowed funds Other liabilities

Current tax liabilities Deferred tax liabilities

▪ Cash and cash equivalents appreciated by 283% as at Q3 2020 and it

contributed the most to total assets value at 55%.

▪ Contribution of investment in financial assets declined from 63% as at FY

2019 to 32% as at Q3 2020 due to the disposal of some financial assets.

▪ Trade and other receivables contributed less to total assets in Q3 2020,

dropping from 17% as at FY 2019 to 13% as at Q3 2020.

▪ Funds under management contributed the most to our total liabilities,

increasing by 7 percentage points from 55% as at FY 2019 to 62% as at Q3

2020.

▪ Other borrowed funds’ contribution reduced during the period under

review from 39% to 30% as at Q3 2020.

▪ The contributions of deferred tax and other liabilities remained minimal.

Balance Sheet Analysis


▪ Return on Equity rose by 3.2 percentage

points YoY in Q3 2020 due to increased

PAT

▪ Return on Assets reduced by 0.19

percentage points YoY in Q3 due to

faster growth in total assets compared

to PAT

▪ Price-to-Book ratio grew by 54% in Q3

2020 due to 56% rise in share price YoY

▪ Price-Earnings ratio grew by 24% YoY in

Q3 due to a higher share price

▪ Cost-to-Income ratio expanded by 3.1

percentage points YoY due to a higher

rise in cost compared to revenue

▪ PAT Margin reduced by 2.6 percentage

points YoY from 51.6% in Q3 2019 to 49%

in Q3 2020.

Sept '19 Sept '20

1.83% 1.64%

Return on Assets

Sept '19 Sept '20

14.02%17.25%

Return on Equity

Sept '19 Sept '20

4.63

5.74

Price-Earnings Ratio

Sept '19 Sept '20

0.65

1.00

Price-to-Book Ratio

Sept '19 Sept '20

51.60%49.00%

PAT Margin

Sept '19 Sept '20

38.57%

41.67%

Cost-to-Income Ratio

Ratios Highlight


Q3 2020

Corporate

Strategy


We attempt to strategically grow our businesses…

Strengthen our B2C model to drive growth across all subsidiaries

Streamline Operational Delivery

Diversify Revenue through

Innovation

Enhance Client Experience and

Engagement

Optimize Resource Consumption

• Continue to deepen and expand the scope of our advisory capabilities

• Leverage more on collaboration and solidify partnerships with other financial institutions.

• Strategic play in high growth sectors in SME space – Agric; Tech.

• Expand our bouquet of unique products and services

• Sustain and improve relationship with clients

• Grow our Private Trust portfolio

• Alternative Fund Management to maximize Returns

• Increase the pool of our Strategic distribution Partners.

• Continue to deepen engagement with Capital Market Operators.

• Expand our product reach to the diaspora audience.

• Leverage on technology to achieve efficiency and scale.

• Intensify client acquisition and retention drive.

• Enhance the client trading platform.

• Improve revenue with focus on equity brokerage income.

• Improve our wholesale and retail business strategy.

• Improve loan application process and customer service.

• Expand the delivery channels and solidify our partnership models.

• Expand our bouquet of products to reach target clients.

Investment Banking Trustee Asset Management Security Trading Consumer Finance


Digital Business • Enhance the features on the InvestNow platform and make the app more user friendly.

• Grow client base using all digital platforms.

Wealth Management• Expand the scope of our business offerings.

• Develop capabilities for open architecture that will ensure we meet our clients’

Wealth Management needs through proprietary or non-proprietary

products/services

Regional Businesses• Improve our business growth through the regional expansion initiative.

• Embark on deliberate marketing strategy to improve brand visibility across all the

regions where we operate.

Pan-Africa• Deepen our relationships with banks, development financial institutions (DFIs) and government agencies in

target sub-Saharan Africa countries.

• Position the Pan Africa business for potential M&A opportunities and deals on the African Continent.

…In line with the following business expansion initiatives.


Q3 2020

Appendix


Statement of Comprehensive Income (in thousands of Nigerian Naira) September-20 September-19

Gross Earnings 7,069,171 5,322,666

Investment income 4,386,011 2,823,138

Fee and commission income 2,249,059 1,389,871

Net trading income 125,281 77,969

Net operating income 6,760,351 4,290,978

Other income 308,820 883,105

Net gains/(loss) on financial assets fair valued through profit or loss - 148,583

Total Revenue 7,069,171 5,322,666

Personnel expenses (1,186,744) (1,128,441)

Other operating expenses (1,325,890) (993,096)

Depreciation and amortization (159,546) (91,974)

Impairment allowance as a result of application of IFRS 9 (273,679) 160,759

Total expenses (2,945,859) (2,052,751)

Profit before income tax 4,123,312 3,269,915

Income tax expense (659,730) (523,187)

Profit for the period 3,463,582 2,746,728

Statement of Comprehensive Income


Statement of Financial Position (in thousands of Nigerian Naira) September-20 December-19

ASSETS

Cash and cash equivalents 115,439,410 30,132,099

Investment in financial assets 67,277,875 94,141,566

Property, plant and equipment 318,403 357,118

Intangible assets 40,244 43,771

Right of use assets 389,813 312

Trade and other receivables 27,799,409 25,528,546

Deferred tax assets 260,184 260,184

TOTAL ASSETS 211,525,338 150,463,596

LIABILITIES

Managed funds 125,746,484 72,379,297

Other borrowed funds 58,335,218 50,876,737

Other liabilities 5,407,378 5,400,633

Current tax liabilities 1,306,411 1,569,828

Deferred tax liabilities 652,041 652,041

TOTAL LIABILITIES 191,447,532 130,878,536

SHAREHOLDERS’ FUND

Share capital 3,000,000 3,000,000

Share premium 683,611 683,611

Retained earnings 17,253,424 16,789,842

Other reserves (859,229) (888,394)

TOTAL SHAREHOLDERS’ FUND 20,077,806 19,585,060

TOTAL LIABILITIES AND SHAREHOLDERS’ FUND 211,525,338 150,463,596

Statement of Financial Position

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