The Asset Management Corporation of Nigeria (AMCON) has reported a 212% increase in profits to N108.43 billion in 2023 from N34.73 billion in the corresponding period.
This financial performance was disclosed in a statement by Jude Nwauzor, Head of Corporate Communications at AMCON.
Despite navigating a tough macroeconomic landscape, AMCON managed to achieve substantial gains primarily driven by fair valuation increases on Eligible Bank Assets, which surged to N40.9 billion in 2023 from a significant loss of N187.9 billion in 2022.
The equity portfolio also saw substantial growth, expanding by 82% to N43 billion compared to N7.9 billion in the previous year.
According to the statement, AMCON attributed its significant trading gains to improved performance in the stock market.
Furthermore, the corporation successfully reduced its total liabilities from N6.282 trillion in 2022 to N5.739 trillion in 2023, largely due to repayments of a N500 billion loan from the Central Bank of Nigeria.
Highlighting its operational achievements, AMCON revealed that it achieved 89% of its revenue budget for 2023, with total recoveries amounting to N125.2 billion during the year.
The agency’s collections included N81.65 billion from various obligors, N17.8 billion from share sales, N15.5 billion from reinvestment income, N6 billion from property sales, N3.8 billion from dividend income, and N0.5 billion from rental income.
The leadership under Gbenga Alade, who was appointed in February and confirmed by the Senate in May, has been pivotal in steering AMCON through these challenging times.
The agency expressed confidence in continuing its positive trajectory in 2023, focusing on enhanced recoveries and efficient realization of value from forfeited assets in line with its mandate.
Established in July 2010 by an act of parliament, AMCON is mandated to stabilize Nigeria’s financial system by efficiently resolving non-performing loan assets of banks.
Over the years, it has played a crucial role in mitigating financial risks and promoting stability in the banking sector.
Speaking on the agency’s outlook for the future, AMCON affirmed its commitment to maintaining its strong performance and improving debt recoveries.
The statement emphasized the agency’s strategic focus on maximizing the value of assets under its management through effective disposal strategies and stringent operational controls.
“The positive financial results for 2023 underscore our resilience and strategic approach in navigating the complexities of the economic environment,” stated Gbenga Alade, the Managing Director of AMCON. “We remain dedicated to fulfilling our mandate of safeguarding the financial system and enhancing economic stability.”
