Africa Prudential reports gross earnings of N1.99bn H1 2022

Africa Prudential Plc has announced its unaudited financial result for the period ended June 30, 2022, reporting gross earnings of N1.99 billion.

The amount represents an increase of 19 per cent compared with N1.67 billion recorded in the corresponding period of last year. The company’s half year result showed that profit before tax up by 29 per cent to N1.16 billion against N0.97 billion made in the preceding year while profit after tax stood at N0.94 billion compared with N0.83 billion posted in the comparative period, representing year on year growth of 13 per cent.

Analysis of the company result showed that interest income down by eight per cent to N1.06 billion against N1.15 billion reported in the half year 2021.

Total assets rose by 142 per cent to N38.18 billion from N15.76 billion achieved in the same period of 2021 while total liabilities up by 322 per cent to N29.49 billion from N6.99 billion in the preceding year.

Commenting on the result, the managing director/ Chief Executive Officer of African Prudential Plc, Obong Idiong said “Our results remain a testament of the impact of our deliberate efforts at diversifying and strengthening our revenue lines to multiple income lines, innovating new ways to deliver value, and adopting cost efficiency in every facet of our operations.

“The 355 per cent growth in digital technology income highlights the success of our switch to a technology-oriented business and we remain positive about the potential growth from this revenue stream in the medium to long term. As we venture into the second half of the year, we will continue to deploy value to our customers leveraging on innovation and technology to transform their experience and increase shareholders’ wealth.”

The report showed that interest income declined 8 per cent year-on-year on account of a 9 per cent decline in the interest on loans and advances and a 53 per cent decline in interest on short-term deposits during the period. On the other hand, Interest earned on bonds increased by 22 per cent year on year cushioning the effect of the significant decline from other interest income sources. Despite the 10 per cent increase in total operating expenses, the cost to income ratio reduced by 4 percentage points to 43 per cent relative to 47 per cent in the corresponding period. The company explained that the total liabilities which increased by 322 per cent year on year were due to 368 per cent growth in customers deposit and a 44 per cent growth in creditors and accruals.

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