United Capital delivers 178% return to shareholders in 2024 – Here’s how they did It 

This is based on an analysis conducted by Naijaonpoint Research using the company’s total shareholder returns for the year.  

But what does that really mean for you as an investor? Let’s break it down. 

How We Got the 178% Return 

Total Shareholder Return (TSR) isn’t just about how much the stock price moves. It’s a combination of three things: 

Here’s how United Capital stacked up in 2024: 

The real game-changer? A massive 12 billion bonus share issuance, which meant shareholders got extra shares without paying more money. 

When you add up all these factors, shareholders ended up with a 178% return on their investment for the year. 

United Capital’s Growth Story in 2024 

Even beyond shareholder returns, United Capital had an excellent year financially. The company’s total market value jumped 167% to reach N369.6 billion, a sign that investors continue to bet big on its future. 

Here are some highlights from their 2024 financials: 

United Capital made most of its money from investment income, fees, and trading gains, showing that its business strategy is working. 

Why the share price didn’t soar despite strong performance 

If United Capital did so well, why didn’t the share price skyrocket? 

The answer lies in the bonus shares. When companies issue bonus shares, they increase the number of shares available in the market.  

While that’s great for existing shareholders, it also means that the share price might not go up as much because the earnings are spread across more shares. 

While that’s great for existing shareholders, it also means that the share price might not go up as much because the earnings are spread across more shares. 

That’s why, despite record profits, Earnings Per Share (EPS) dropped 29%, not because the company made less money, but because it now has more shares in circulation. 

A look at the share price over the years 

If you’ve been holding United Capital shares for a while, you’ve seen incredible growth. 

Even though the stock has cooled off a bit in early 2025, the long-term trend still looks strong. 

Is United Capital still a good investment? 

The numbers suggest that United Capital is in a strong position. The company generates solid cash flow (N25.68 per share), has a decent price-to-earnings (P/E) ratio of 14.93x, and remains one of the most trusted names in asset management. 

But as always, no investment is without risk. If you’re a retail investor, here are some things to consider: 

With a 178% total return in 2024, United Capital has certainly proven its ability to create wealth for investors. The challenge now is whether it can keep up the momentum in 2025. 

Would you buy, hold, or sell? Let’s see how the market plays out.