FY 2023: AMCON declares triple digit growth, recovers N125.2bn
The Asset Manage ment Corporation of Nigeria (AMCON) has declared a triple digit growth in its full year financial report for 2023.
This was contained in the latest press release issued by Mr. Jude Nwauzor, Head Corporate Communications Department of the debt recovery agency of the Federal Government.
According to the statement, the Agency also recovered N125.2bn debts.
Established in 2010, AMCON was created to be a key stabilising and re-vitalising tool established to revive the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy.
According to the statement made available to NewsDirect, AMCON stated it achieved a triple-digit growth of 202 percent from NGN34.730 billion in the previous year to NGN108.433 billion in 2023.
A breakdown of this showed that AMCON, which is currently led by Mr Gbenga Alade as Managing Director/Chief Executive Officer achieved a Year-on-Year (YoY) growth in profit of 212 percent from N34.730 billion in the financial year, which ended on December 31, 2022, to N108.433 billion in the period ended December 31, 2023.
The report disclosed that fair valuation gains on Eligible Bank Assets (EBAs) increased to N40.9 billion in 2023 from a loss of N187.9 billion in 2022. Equity portfolio recorded 82 percent growth in 2023 amounting to N43 billion as compared with N7.9 billion in 2022. The significant trading gains are as result of an improved performance in the stock market.
Interestingly, the Corporation achieved a favourable reduction in total liabilities, from N6.282 trillion in 2022 to N5.739 trillion in 2023, primarily due to repayments of the N500 billion Central Bank of Nigeria (CBN) loan. The Corporation also achieved 89 percent achievement of its revenue budget in 2023 as the total recovery in 2023 stood at N125.2 billion.
A breakdown of the recovery showed that AMCON achieved N81.65 billion in collections from various obligors, N17.8 billion from share sales, N15.5 billion reinvestment income, N6 billion as proceed from sale of properties, N3.8 billion dividend income and N0.5 billion from rental income despite the country’s challenging economic environment, occasioned by the removal of subsidy and floatation of the naira.
“The executive management of the Corporation led by Mr Alade said AMCON is strategically positioned to continue with the positive trajectory achieved in the year 2023, with special emphasis on improved recoveries and efficient realisation of value from disposal of forfeited assets in furtherance of the Corporation’s mandate,” Jude noted.
