Africa Prudential reports 24% drop in profit to N0.83bn

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By Kayode Tokede

With a decline in gross earnings and interest income, Africa Prudential Plc has reported 24 per cent drop in profit as stated in unaudited half year (H1) result and accounts for period ended June 30, 2021.

The company reported N0.83 billion profit of H1 2021 unaudited results from N1.08billion reported in unaudited results of H1 2020.

The result and accounts released on Nigerian Exchange Limited (NGX) disclosed also 20 per cent dropped in profit before tax to N0.97 billion, compared to N1.22 billion reported in H1 2020.

The company’s Gross Earnings closed H1 2021 at N1.67billion, a decline of 11 per cent from N1.87 billion reported in H1 2020,  as revenue from contracts with customers closed at N0.52 billion, 12 per cent decline in its Year-on-Year performance compared to N0.59 billion in H1 2020.

The company in a statement explained that, “During the period under review, revenue from contracts with customers contracted by 12 per cent year-on-year on the back of a significant renegotiation of fees rate by customers along our corporate actions revenue lines as well as slow sign off of contracts within the period in digital consultancy. However revenue from register maintenance increased by 8  per cent.”

Also from profit & loss figures, Africa Prudential reported Interest Income of N1.15 billion, compared to N1.28 billion in H1 2020 (10per cent YoY decline).

On interest income decline, the company in a statement said, “While the company was bullish with 436per cent increase in the interest realized from bonds and also a 193per cent increase in the interest realized from short term deposits, there was a slight 10per cent year-on-year decline in interest income owing to a four per cent decline in interest on loans and advances and a nil income on T-Bills relative to H1 2020.”

From balance sheet position, the company reported 401 per cent increase in total assets to N88.87 billion as at June 30, 2021 compared to N17.73 billion as at financial year ended December 31, 2020.

The company also noted that, “Total Assets: In the second quarter of 2021, the total assets increased 401per cent on the back of 7336 per cent surge in cash and cash equivalents as well as an 70per cent increase in trade and other receivables.”

In addition, total Liabilities rose by 762 per cent to N80.71billion as at June 31, 2021 from N9.36 billion as at financial year ended December 31, 2020.

Africa prudential’s shareholders’ fund stood at N8.16 billion, a 2 per cent decline from N8.37 billion as full year ended December 31, 2020.