The Nigerian capital market is entering a decisive new phase, anchored by a sovereign rating upgrade, a faster stock settlement cycle and renewed recognition from global index compilers.
This expression of optimism came from authorities of United Capital Plc during its maiden edition of INVESTOR RELATIONS Roundtable held in Lagos under the theme “Decoding Performance: Insights into United Capital’s Growth Drivers and Outlook.”
During the session, the Group Chief Executive Officer, United Capital Plc, Peter Ashade, presented the company’s H1 2026 financial figures and accredited its outstanding performance to Nigeria’s return to a “B” sovereign rating from S&P, up from “B-” amongst other major factors.
Ashade said the performance was marked by sustained growth in gross earnings, strong profitability, and continued momentum across United Capital PLC’s businesses.
Other relevant drivers identified were: the Nigerian Exchange’s adoption of a T+1 settlement cycle, its reclassification by FTSE Russell to frontier market status, and its placement on S&P Dow Jones Indices’ watchlist for a possible frontier-market upgrade ahead of a 2027 review.
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On the inflation outlook that underpins much of that market optimism, the pan-African investment bank said “Inflation has remained stable, ranging between 15.06% and 15.93%, despite elevated crude oil prices. Key drivers of the stability include a stable exchange rate, increased local refining capacity, and improving domestic food production. Inflation is expected to remain around 15%, barring any major shocks.”
United Capital also singled out pension reform as a structural catalyst for the domestic market, noting that regulatory changes could pull significant fresh capital into equities.
Total Breakdown
The group’s gross earnings rose 58 percent year-on-year to ₦37.49 billion in the six months to June, while pre-tax profit climbed 80 percent to ₦24.78 billion and profit after tax rose 77 percent to ₦21.10 billion.
Earnings per share nearly doubled to ₦2.34 from ₦1.32, and shareholders’ funds grew 25 percent year-to-date to ₦187.09 billion.
The Nigerian Exchange’s All Share Index gained 47.43 percent through June, pushing market capitalisation to ₦147.22 trillion, or roughly $107 billion.
Looking Ahead
On the company’s projection for the second half, the Group CEO said ”the plan is to ramp up revenue while keeping expenses down to drive improved profitability in the coming quarter.
To drive the required improvement, we are focusing on repricing liabilities while growing AUM to improve on spread to grow income from managed funds.
We plan to also close out major deals/Transactions to grow Fee income whilst aggressively driving growth and performance of the mutual funds.”
Its trustee business, which serves as trustee on more than ₦9 trillion in mandates, offered a similarly detailed second-half outlook:
“Our short-term outlook for H2 2026 reflects continued growth across all trust segments, underpinned by a stable interest rate environment, moderate market appreciation, and steady new business inflows.”
Meanwhile, beyond Nigeria, the company tied its growth ambitions to the wider continent, setting its 2026 business-expansion priority in explicitly Pan-African terms.
It said: “We will deepen our presence in African markets to reinforce our position as a leading Pan-African financial institution.”
