Africa Prudential sustains profitability, earnings, PAT, PBT, others
By Philemon Adedeji
Africa Prudential Plc, a leading financial services in Nigeria providing innovative solution in share registration, listed on the Nigerian Exchange Limited (NGX), in it’s audited financial statement for the period ended December 31, 2022, the group delivered all-round impressive performance across all its major business segments such as gross earnings, Profit After Tax (PAT), Profit Before Tax (PBT) and others.
The group reported a decent 6.0 per cent growth in Profit to N1.493 billion in FY 2022 from N1.414 billion in FY 2021, driven by significant improvement in revenue.
However, revenue from contracts with customers stood at N1.9 billion compared to N1.38 billion in FY 2021, 36 per cent Year-on-Year growth, driven by 96 per cent Year-on-Year growth in digital technology services.
From the released statement on the floor of Nigerian Exchange Limited (NGX), the group Profit Before Tax recorded increased by 8.0 per cent to N2.166 billion in FY 2022 from N2.006 billion in FY 2021.
From the profit and loss figures, the group delivered an impressive gross earnings amounted to N4.132 billion in FY 2022 from N3.521 billion in FY 2021, reflecting an increase of 17 per cent Year-on-Year.
As regard to total operating expenses, the cost-to-income ratio was 48 per cent in FY 2022 , while total expenses slightly increased by 24 per cent Year-on-Year.
The group recorded four (4) per cent Year -on-Year growth in Interest Income owing to an increase in the available investible funds driven by a 22 per cent growth in total assets.
The group delivered an Earnings Per Share of 75 Kobo in FY 2022 from 71 Kobo in FY 2021 and proposed a dividend.
The management of Africa Prudential has proposed a final dividend of N0.50 Kobo for FY 2022, same as FY 2021.
Africa Prudential grew customers deposits fund by a remarkable 44.9 per cent from N6.199 billion achieved in FY 2021 to N8.985 billion accounted in FY 2022.
The cash and cash equivalents amounted to N850.6 million in full year 2022 from N866.9 million in the preceding year, reflecting a marginal decrease of 1.7 per cent.
Intangible assets however moved upward direction from N61.335 billion at the end of prior financial year to N141.9 billion in FY 2022, revealing a significant jump of 131.3 per cent.
Analysis on the balance sheet
In the audited financial statement for the period ended December 31, 2022, the group grew its balance sheet remain well structure by impressive 22 per cent Year -on-Year on account of an increase in the value of debt instruments.
As total liabilities gained nearly 41 per cent Year-on-Year to N9.885 billion in FY 2022 from N6.993 million in the corresponding year driven by 45 per cent improvement in customers’ deposit.
In addition, the group Shareholders’ fund stood at N9.39 billion, a marginal increase of 7.0 per cent Year-on-Year from N8.77 billion as at FY 2021.
The Vice President of Highcap Securities Limited, David Andori commented on the results that Afriprud’s full year is good but not impressive. They may not be able to pay a good dividend. A huge increase in liabilities is worrisome.
Profitability ratio
The group Profit Margin came in at 52.4 per cent in 2022 from 56.9 per cent in 2021, as Return on Assets margin was 7.7 per cent in 2022 from 8.9 per cent in 2021, while Return on Equity stood at 15.9 per cent from 16.1 per cent in 2021.
History of Africa prudential
Africa Prudential Plc formerly Africa Prudential Registrars Plc is a leading financial services company in Nigeria, providing innovative solutions in share registration, corporate services, and investor relations. Founded in 2006, the company has built a reputation for excellence and has become a trusted partner to many of the largest companies in Nigeria. Africa Prudential Plc is listed on the Nigerian Stock Exchange (NSE) and has over of over $100 million.
The company has consistently delivered impressive financial results, with a strong revenue growth and profitability track record. With a team of experienced professionals and a commitment to innovation, Africa Prudential Plc is well-positioned to capitalise on the growth opportunities in Nigeria’s financial sector.
Commenting on the result, the Managing Director/CEO of Africa Prudential, Mr. Obong Idiong, said “our results remain a testament to 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 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 last quarter of the year, we will continue to deploy value to our customers leveraging innovation and technology to transform their experience and increase shareholders’ wealth.”
