UNITED CAPITAL : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

UNITED CAPITAL PLC

UNAUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

UNITED CAPITAL PLC

Unaudited Consolidated and Separate Financial Statements

30 September 2023

Table of Contents
Corporate Information	1
Statement of Directors' Responsibilities	2
Operational Risk	3
Legal and Regulatory Risk	5
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10
Value Added Statement	65
5-Year Financial Summary	66

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	UNITED CAPITAL PLC
	Unaudited Consolidated and Separate Financial Statements
	30 September 2023
CORPORATE INFORMATION
DIRECTORS:
Chika Mordi	Chairman (Non Executive Director)
Peter Ashade	Group Chief Executive Officer
Sunny Anene	Group Executive Director
Emmanuel N. Nnorom	Non Executive Director
Dipo Fatokun	Independent Non Executive Director
Leke Ogunlewe	Non-Executive Director
Sam Nwanze	Non-Executive Director (Appointed 24th February 2023)
Chiugo Ndubisi	Non-Executive Director (Appointed 24th February 2023)
Ayodeji Adigun	Executive Director (Appointed 25th April 2023)
Uche Ike	Non-Executive Director (Appointed 13th June 2023)
EXECUTIVE MANAGEMENT:
Peter Ashade	Group Chief Executive Officer
Sunny Anene	Deputy Group Chief Executive Officer
Ayodeji Adigun	Group Executive Director (COO)
Gbadebo Adenrele	Managing Director, United Capital Investment Banking
Bawo Oritshajafor	Managing Director, United Capital Securities Limited
Odiri Oginni	Managing Director, United Capital Asset Management Limited
Leo Okafor	Ag. Managing Director, United Capital Trustees Limited
Shedrack Onakpoma	Group Chief Finance Officer
Leo Okafor	Group Company Secretary/General Counsel
RC No.	RC444999
FRC No.	FRC/2013/00000000001976
REGISTERED OFFICE:	3rd & 4th Floor
	Afriland Towers,
	97/105 Broad Street,
	Lagos Island,
	Lagos, Nigeria
BANKERS	United Bank for Africa Plc
	57, Marina,
	Lagos Island,
	Lagos.
AUDITORS:	PricewaterhouseCoopers Nigeria
	5B Water Corporation Road
	Landmark Towers, Victoria Island
	Lagos, Nigeria

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UNITED CAPITAL PLC

Unaudited Consolidated and Separate Financial Statements

30 September 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors of United Capital Plc are responsible for the preparation of the consolidated and separate financial statements that give a true and fair view of the financial position of the Group and Company as at 30 September 2023, and the results of its operations, cash flows and changes in equity for the period ended, in compliance with International Financial Reporting Standards ("IFRS") and in the manner required by the Companies and Allied Matters Act of Nigeria, the Financial Reporting Council of Nigeria Act and the Investments and Securities Act.

In preparing the consolidated and separate financial statements, the Directors are responsible for:

• properly selecting and applying accounting policies;
• presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
• providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group and Company's financial position and financial performance; and
• making an assessment of the Group's ability to continue as a going concern.

The Directors are responsible for:

• designing, implementing and maintaining an effective and sound system of internal controls throughout the Group and Company;
• maintaining adequate accounting records that are sufficient to show and explain the Group's and company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company, and which enable them to ensure that the financial statements of the Group and Company comply with IFRS;
• maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS;
• taking such steps as are reasonably available to them to safeguard the assets of the Group and Company; and
• preventing and detecting fraud and other irregularities.

Going Concern:

The Directors have made an assessment of the Group's and Company's ability to continue as a going concern and have no reason to believe the Group and Company will not remain a going concern for at least twelve months from the date of this financial statements.

The consolidated and separate financial statements of the Group and Company for the period ended 30 September 2023 have been authorised for issue and were approved by the Board of Directors on 20 October 2023.

On behalf of the Directors of the Group

Chika Mordi		Peter Ashade
Chairman		Group Chief Executive Officer
FRC/2014/IODN/00000006667		FRC/2013/NBA/00000002719

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UNITED CAPITAL PLC

Unaudited Consolidated and Separate Financial Statements

30 September 2023

OPERATIONAL RISK MANAGEMENT

1 Operational Risk Management

Operational risk is the risk of loss resulting from inadequate or failed processes or systems, human factors or external events.

Operational risk is inherent in each of the Group's businesses and support activities. Operational risk can manifest itself in various ways, including errors, fraudulent acts, business interruptions, inappropriate behaviour of employees, or vendors that do not perform in accordance with their arrangements. These events could result in financial losses, including litigation and regulatory fines, as well as other damage to the Group, including reputational harm.

To monitor and control operational risk, the Group maintains an overall framework that includes strong oversight and governance, comprehensive policies and processes, consistent practices across the lines of business, and enterprise risk management tools intended to provide a sound and well controlled operational environment. The framework includes:

• Ownership of the risk by the businesses and functional areas
• Monitoring and validation by internal control officers
• Oversight by independent risk management
• Independent review by Internal Audit

The goal is to keep operational risk at appropriate levels, in light of the Group's financial strength, the characteristics of its businesses, the markets in which it operates, and the competitive and regulatory environment to which it is subject.

In order to strengthen focus on the Group's control environment and drive consistent practices across businesses and functional areas, the Group established a group shared service operational platform in 2021. Critical to the effectiveness, efficiency and stability of this operating environment is the deployment and implementation of suitable technology leveraging an Enterprise Resource Platform. In addition, the Group has invested in the development of business continuity plans, systems and capabilities to ensure resilience and stability of our business operations in the face of unforeseen disruptions.

The Group's approach to operational risk management is intended to identify potential issues and mitigate losses by supplementing traditional control-based approaches to operational risk with risk measures, tools and disciplines that are risk-specific, consistently applied and utilized group-wide. Key themes are transparency of information, escalation of key issues and accountability for issue resolution. The Group has a process for monitoring operational risk event data, which permits analysis of errors and losses as well as trends. Such analysis, performed both at a line of business level and by risk-event type, enables identification of the causes associated with risk events faced by the businesses.

Internal Audit utilizes a risk-based program of audit coverage to provide an independent assessment of the design and effectiveness of key controls over the Group's operations, regulatory compliance and reporting. This includes reviewing the operational risk framework, the effectiveness of the internal control environment, and the loss data- collection and reporting activities.

Business and Strategic risks are governed by the group executive committee - which is ultimately responsible for managing the costs and revenues of the Group, and the board.

2 Financial crime control

Financial crime includes fraud, money laundering, violent crime and misconduct by staff, customers, suppliers, business partners, stakeholders and third parties. The Group will not condone any instance of financial crime and where these instances arise, the Group takes timely and appropriate remedial action.

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