By Dipo Olowookere
In the third quarter of 2020, Africa Prudential suffered a decline in its profit after tax, which closed at N1.4 billion as against N1.5 billion it closed a year ago.
In the same vein, profit before tax reduced in the same period under review to N1.6 billion from N1.8 billion it recorded in the same period of last year.
According to the financial statements of the company for the period ended September 30, 2020, the gross earnings went down N2.6 billion from N2.9 billion, with revenue from contracts with customers down to 860.8 million from N1.2 billion as a result of the impact of COVID-19 on its key clients, which resulted in renegotiation and repricing.
However, the firm said the company’s fees from corporate actions grew by 25.79 per cent, register maintenance grew by 47.49 per cent and revenue from digital technology consultancy significantly increased by 264.63 per cent year-on-year.
Despite the poor yield environment, Africa Prudential’s interest income increased by 6 per cent year-on-year and this was fuelled by the 19.83 per cent rise in interest income on loans and advances and 780 per cent growth in interest income on bonds.
The total increase in the interest income was achieved despite 45.94 per cent reduction in interest income on treasury bills and 87.95 per cent reduction in interest income on short-term deposits, according to the financial results.
In all of these, the company has assured shareholders of the company of sustainable value, noting that efforts are being put in place to turn things around for good.
“While the negative economic impact of the COVID-19 continues to reflect on our traditional income lines, the transition of the company from a traditional registrar business to a technology business deploying technology to transform the registrar, cooperative, e-commerce and digital technology play could not have come at a better time.
“We are confident that as the company’s new businesses continue to gather momentum, we will continue to deliver sustainable value to our investors,” the Managing Director/CEO of Africa Prudential, Mr Obong Idiong, stated.
Continuing, he said, “Among the gradual result of the transformation process is the 264 per cent year-on-year growth in digital technology consultancy income.”
“We also grew our investment income by 6 per cent year-on-year through an efficient allocation of investmentbible fund despite the prevailing low-interest rate regime.
“We will continue to consolidate on our gains in the digital technology space to deliver great value and exceptional experience to clients across all our touch points.”
