BY Rosemary Iwuala.
Africa Prudential Plc has reported 19 percent increase in profit before tax to N1.16 billion, according to its half year (H1) unaudited results for the period ended June 30, 2022 compared to N972.3 million reported in the corresponding period.
The business solution and share registration service provider listed on the Nigerian Exchange Limited (NGX) also grew profit after tax by 13 percent to N935.8 billion in H1 2022 from N827.64 million in H1 2021.
A gain of 19 percent in gross earnings to N1.99 billion in H1 2022 compared to N1.67 billion in H1 2021 and 79 percent growth in revenue from contracts with customers to N928 million in H1 2022 compared to N517 million in H1 2021 contributed primarily to profits growth in the period under review.
According to the company, interest income declined by 8 percent in H1 2022 on account of a 9 percent decline in the interest on loans and advances and a 53 percent decline in interest on short-term deposits during the period.
On the other hand, interest earned on bonds increased 22 percent year-on-year cushioning the effect of the significant decline from other interest income sources.
Despite the 10 percent increase in total operating expenses, the company’s cost-to-income ratio reduced by four percentage points to 43 percent relative to 47 percent in the corresponding period.
Obong Idiong, managing director/CEO, Africa Prudential, said in a statement that the results remain a testament of the impact of the company’s deliberate efforts at diversifying and strengthening its revenue lines to multiple income lines, innovating new ways to deliver value, and adopting cost efficiency in every facet of its operations.
“The 355 percent 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,” Idiong said.
“As we venture into the second half 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.