Interest rate to remain high amid inflationary pressures — United Capital
United Capital Forecasts High Interest Rates Amid Inflationary Pressures
By Peter Egwuatu
LAGOS — United Capital Plc has stated that interest rates in Nigeria are likely to remain elevated due to ongoing inflationary pressures in the latter half of 2026.
At an investor relations roundtable in Lagos, Group Chief Executive Officer Peter Ashade remarked, “With inflation continuing to surpass various Central Banks’ targets, primarily influenced by elevated oil prices resulting from the US-Iran conflict, we expect inflation to remain persistent. The current oil supply shocks have contributed to rising yields, with the US 10-Year Bond increasing to 4.6% from 3.9% in March 2026.”
Discussing the company’s performance in the first half of 2026, Ashade reported a significant rise in profit after tax, which surged 77.5% to N21.10 billion. The investment banking and financial services group attributed this growth to robust performance across its core sectors, increased trading income, and expanding fee-based revenues.
The group’s unaudited financial results for the six months ending June 30, 2026, showed profit before tax climbing 79.6% to N24.78 billion, up from N13.79 billion during the same period in 2025. Gross earnings rose by 57.8% to N37.49 billion.
Net operating income increased to N33.05 billion, compared to N21.32 billion a year earlier, driven by strong investment income, fee commissions, and a sharp rise in net trading income. Earnings per share rose to N2.34 from N1.32, and the annualized return on equity strengthened to 25.03% from 16.77%. The cost-to-income ratio improved to 44% from 50%, highlighting enhanced operational efficiency.
Ashade noted that shareholders’ funds grew nearly 25% to N187.09 billion, up from N150 billion at the close of December 2025, while total assets reached N1.64 trillion. Managed funds also increased to N1.04 trillion, further reinforcing the company’s status as a leading investment manager in Nigeria.
“The asset management subsidiary currently oversees more than N1 trillion in assets for over 100,000 retail and institutional investors, and mutual fund assets under management have surged by over 350% since 2021,” Ashade added.
Looking ahead to the latter part of the year, he projected that global interest rates might remain high amid persistent inflation. He also anticipated increased competition for funding. However, Ashade expressed optimism that technology-driven investment opportunities and expansion across African markets would aid future growth.
“Our 2026 strategy will prioritize business expansion throughout Africa, product innovation, financial inclusion, digital transformation, operational efficiency, and continued growth in assets under management, as we aim to solidify our leadership in the investment services industry,” he concluded.
