Africa Prudential Plc on Friday reported a 6% increase in profit after tax to N403.147 million for the first quarter (Q1) ended March 31st, 2022.
The company’s unaudited financial statement obtained by Investors King revealed that gross earnings grew by 10% from N825.632 million in Q1 2021 to N907.777 million in Q1 2022. Profit after tax rose by 15% to N552.256 million from N478.202 in Q1 2022.
Revenue from contracts with customers stood at N448.328 million in Q1 2022, a 25% year-on-year increase from N357.342 billion filed in Q1 2021.
See other details of Africa Prudential income statement:
• Revenue from contracts with customers: N0.45 Billion, compared to N0.36 Billion in Q1 2021 (25% YoY Growth);
• Interest Income: N0.46 Billion, compared to N0.47 Billion in Q1 2021 (2% YoY Decline);
• Gross Earnings: N0.91 Billion, compared to N0.83 Billion in Q1 2021 (10% YoY Growth);
• Profit Before Tax: N0.55 Billion, compared to N0.48 Billion in Q1 2021 (15% YoY Growth);
• Profit After Tax: N0.40 Billion, compared to N0.38 Billion in Q1 2021 (6% YoY Growth);
• Earnings Per Share: 20kobo. (19kobo in Q1 2021).
• Total Assets: N17.10 Billion, compared to N15.76 Billion as at Q1 2021 (11% YoY Growth);
• Total Liabilities: N8.94 Billion, compared to N6.99 Billion as at Q1 2021 (28% YoY Growth);
• Shareholders’ Fund stood at N8.16 Billion, a 7% YoY decline from N8.77 Billion as at Q1 2021.
Items of Note;
Comparing Q1 2022 to Q1 2021, we observed the following key items worthy of note:
• Revenue from contracts with customers: During the period under review, revenue from contracts with customers grew significantly by 25%, driven by a 212% year-on-year growth in digital technology services despite the 60% decline in Fees from Corporate Actions.
• Interest income: We recorded a slight 2% year-on-year decline in interest income owing to a 4% decline in the interest on loans and advances and an 86% decline in interest on short-term deposits during the period. On the other hand, Interest earned on bonds increased 44% year-on-year, cushioning the effect of the significant decline from other interest income sources.
• Total operating expenses: Despite the slight decrease in total operating expenses by 2% YoY our cost-to-income ratio reduced by 3 percentage points to 39% relative to 42% in the corresponding period.
• Profit After Tax: Profit before Tax was up15% YoY, while Profit before Tax showed a 6% growth due to a higher tax charge (27% in Q1 22 relative to 20% in Q1 21). Comparing Q1 2022 to Q1 2021, the following were observed in the
• Total Assets: During the period, the book value of total assets grew 9% year-on-year driven by an 11% increase in cash and cash equivalents and a 28% increase in Trade and other receivables.
• Total Liabilities: The company’s total liabilities also increased by 28% year-on-year due to a 27% growth in customers’ deposits and a 110% growth in creditors and accruals.
• Shareholder’s Wealth: Due to faster growth in liabilities relative to assets, total equity declined by 7% YoY.
Commenting on the result, the Managing Director/CEO of Africa Prudential, Mr. Obong Idiong, had this to say: “We are pleased to start the year with the positive Q1 results. The recorded growth in our business is a testament to the impact of our deliberate effort at enhancing our traditional mono revenue lines to multiple income lines, innovating new ways to deliver value in an agile manner, and adopting cost efficiency in every facet of our operation.”
“The 212% growth in digital technology income reiterates the effectiveness of our switch to a new business model and we remain positive about the potential growth from this revenue stream in the coming quarters and long term. As the year progresses, we remain focused on increasing shareholder’s wealth and commit to delivering an exceptional customer experience to our expanding clientele base.”
Buhari Expresses Confidence in Banking Institutions to Tackle Economic Challenges
President Muhammadu Buhari has expressed his confidence in the West African Banking Association (WABA) to tackle economic challenges in the West African region.
The president expressed his trust while receiving a team from WABA, led by its President, Thierno Seydou Nourou Sy, at the State House in Abuja.
The president stated that the sub-region needs to come to an agreement on low access to financial services and recovery from the COVID-19 pandemic.
According to him, the association, founded in 1981, brings together over 250 commercial banks and 15 institutions from across West Africa, and for many centuries, African countries have traded with one another without a formalized and structured system. He, however, noted that over time, global trade had become more complex and organized.
The president expressed optimism that the launch of the African Continental Free Trade Area will mark a watershed moment in the way African countries do business.
“More importantly, we will turn the page in ensuring that we deepen and expand our industrial capabilities by making sure we export less of what we have been endowed with in the primary or raw form, and convert larger portions of these resources into finished materials.
“That will allow us to benefit from the revenue earned from the added value of exporting a finished product,” he said.
“Our ability to overcome the current phase of our development lies in our resolve to work jointly via our regional and sub-regional organizations where we can all reach a common understanding to fight against a common enemy.
“This is one of the reasons I am delighted with the strides ECOWAS has been making towards unanimity and forging alliances with a goal to resolve issues that confront the sub-region.
“I believe that this is also the approach that is being followed in the West African Bankers’ Association and the West African Monetary Union,’’ he added.
While commenting on WABA’s ongoing attempts to synchronize monetary and fiscal policy, the president pushed the organization to find common ground despite the particular macroeconomic challenges that each member-state faces.
He pledged that Nigeria would always be ready to support efforts that are geared towards improving the lives of all its citizens “as long as they do not place us at a disadvantage.”
The WABA President praised Nigeria’s leadership role in the African economy, while also praising President Buhari’s leadership.
“That’s why we are here for counsel and guidance for the financial sector in West Africa,” he said. He further urged the president to be an advocate for the greater inclusion of WABA in the ECOWAS structure.
NGX Sheds 0.13% on Monday to Extend its Decline
The Nigerian Exchange Limited (NGX) extended its decline on Monday as investors exchanged 263,338,835 shares worth N3.549 billion in 4,549 billion.
The market value of all listed equities decreased by N37 billion from N28.562 trillion it closed on Friday to N25.525 trillion while NGX shed 0.13% to close at 52,911.51 index points on Monday.
Jaiz Bank led the most traded stocks with 114007816 shares worth N101,752,697.03. Followed by GTCO’s 12,872,851 shares valued N302,842,620.75. See other details below.
|CONOIL||N 31.15||N 34.25||3.10||9.95 %|
|MRS||N 13.60||N 14.95||1.35||9.93 %|
|MCNICHOLS||N 2.13||N 2.34||0.21||9.86 %|
|ACADEMY||N 1.23||N 1.35||0.12||9.76 %|
|NPFMCRFBK||N 1.87||N 2.02||0.15||8.02 %|
|PRESCO||N 200.00||N 180.00||-20.00||-10.00 %|
|GSPECPLC||N 3.41||N 3.07||-0.34||-9.97 %|
|NEIMETH||N 1.76||N 1.59||-0.17||-9.66 %|
|UACN||N 14.40||N 13.20||-1.20||-8.33 %|
|NEM||N 4.39||N 4.05||-0.34||-7.74 %|
Nigeria Raises Interest Rate by 150 Basis Points to 13%
The Central Bank of Nigeria (CBN) led Monetary Policy Committee on Tuesday unanimously agreed to raise interest rates by 150 basis points from 11.5% to 13% to rein in escalating consumer prices.
The apex Governor, Godwin Emefiele disclosed this while speaking to the media on Tuesday, May 24th, 2022.
In 2020, the committee cut interest by 50 basis points to 11.5% in September 2020 to encourage borrowing and deepen new investment to stir growth and halt the plunge in economic productivity during the peak of COVID-19.
The nine-member committee voted unanimously to keep Monetary Policy Rate (MPR) at 13% and others as follow:
- The asymmetric corridor of +100/-700 basis points around the MPR was retained
- CRR was retained at 27.5%
- While Liquidity Ratio was also kept at 30%
The increase may not be unconnected to Nigeria’s high inflation rate of 16.82% in April. The committee is now projecting an aggressive increase in the inflation rate due to the forthcoming general election.
Emefiele said the MPC is suspicious “there might be an aggressive accretion of inflation”. Therefore, to prevent the looming inflation, he said the committee had to raise the interest rate by 150 basis points.
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