Investment banking and financial services group United Capital Plc says interest rates in Nigeria are expected to remain elevated in the second half of 2026 as inflationary pressures continue to weigh on the economy.
Speaking at the company’s investor relations roundtable in Lagos, themed “Decoding Performance Insights into United Capital Growth Drives and Outlook,” the Group Chief Executive Officer, Peter Ashade, said persistent inflation and global oil market disruptions are likely to keep borrowing costs high.
According to Ashade, inflation remains above the targets of many central banks due to the impact of elevated oil prices linked to the US-Iran conflict and continuing supply shocks in the global energy market. He noted that rising inflation has pushed up global bond yields, with the US 10-year bond yield increasing to 4.6 per cent from 3.9 per cent in March 2026.
On the company’s financial performance, Ashade said United Capital recorded strong growth in the first half of 2026. Profit after tax rose by 77.5 per cent to N21.10 billion, while profit before tax increased by 79.6 per cent to N24.78 billion, compared with the same period in 2025.
He added that gross earnings grew by 57.8 per cent to N37.49 billion, while net operating income climbed to N33.05 billion from N21.32 billion a year earlier. The performance was driven by stronger investment income, higher fee and commission earnings, and a significant rise in trading income.
United Capital also reported improved operational efficiency, with its cost-to-income ratio falling to 44 per cent from 50 per cent. Earnings per share increased to N2.34 from N1.32, while annualised return on equity improved to 25.03 per cent from 16.77 per cent.
Ashade disclosed that the group’s shareholders’ funds expanded by nearly 25 per cent to N187.09 billion, while total assets stood at N1.64 trillion. Managed funds rose to N1.04 trillion, reinforcing the company’s position as one of Nigeria’s leading investment managers.
He said the asset management subsidiary now oversees more than N1 trillion in assets for over 100,000 retail and institutional investors, with mutual fund assets under management growing by over 350 per cent since 2021.
Looking ahead to the second half of 2026, Ashade said global interest rates are expected to remain high as inflation persists and competition for funding intensifies. However, he expressed optimism that technology-driven investment opportunities and expansion across African markets would support future growth.
He added that United Capital’s 2026 strategy will focus on African expansion, product innovation, financial inclusion, digital transformation, operational efficiency and continued growth in assets under management as the company seeks to strengthen its leadership in the investment services industry
