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Africa Prudential Reports N403.147 Million Profit After Tax in Q1 2022

Africa Prudential grew profit after tax by 6% to N403.147 million in the first quarter of 2021

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African Prudential - Investors King

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).

Balance Sheet:

• 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

Balance Sheet:

• 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.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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