Q3 2022: Africa Prudential’s posts 12% growth in profit to N1.29bn in nine months
By Philemon Adedeji
Africa Prudential Plc has declared its unaudited financial statements for the period ended September 30th, 2022, declaring a profit of N1.29 billion in third quarter Q3 2022 which represents a 12 per cent increase year-on-year (Y-o-Y) compared to N1.15 billion accounted in Q3 2021.
A closer look at the financial report showed that profit was driven by a significant rise in revenue generated from contracts with customers and interest income.
Both segments such as, contracts with customers and interest income delivered a gross revenue of N2.9 billion during the period under review as against N2.4 billion during the same period last year.
The company recorded a 37 per cent Year-on-Year revenue growth from contracts with customers, driven by a 115 per cent Year-on-Year growth in digital technology services.
Interest income increased by 13 per cent Year-on-Year on account of an increase of 14 per cent and nine per cent in the interest on loans & advances, and bonds. However, there was a 44 per cent decline in interest on short-term deposits.
Profit Before Tax recorded a 19 cent growth due to a 37 per cent Year-on-Year revenue growth.
During the period, the book value of total assets grew 27 per cent year-to-date driven by an increase in cash and cash equivalents and debt instruments.
The company’s total liabilities also increased by 58 per cent Year-on-Year due to a 59 per cent growth in customers’ deposits and a 655 per cent growth in creditors and accruals.
Revenue from contracts with customers stood at N1.15 billion in Q3 2022 compared to N0.838 billion in Q3 2021, reflecting a marginal difference of 37 per cent year -on-year (YoY).
Interest Income was up N1.82 billion, compared to N1.61 billion in Q3 2021 a 13 per cent YoY growth while Gross Earnings stood at N2.97 billion, compared to N2.45 billion in Q3 2021 a 21 cent YoY growth.
Profit Before Tax was N1.61 billion, compared to N1.35 billion in Q3 2021 19 cent Y-o-Y increase while Total Assets stood at N20.09 billion, compared to N15.76 billion as of FY 2021 a 27 cent year-to-date growth.
Total Liabilities recorded for the period stood at N11.05 billion in Q3 2022, compared to N6.99 billion as of FY 2021, reflecting a 58 per cent year-to-date, ( YTD) increase.
Shareholders’ fund stood at N9.03 billion, a 3 per cent YoY growth from N8.77 billion as of FY 2021.
Commenting on the financial performance, the company’s Managing Director, Mr Obong Idiong, said “The 115 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 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.” he said
