Africa Prudential Registrars Plc (Nigeria) – HY 2022 PAT up 13% to N0.94 billion

Africa Prudential Registrars Plc (AFRIPR.ng) HY2022 Interim Report

Lagos, Nigeria – July 21, 2022 – Africa Prudential Plc (NSE Ticker: AFRIPRUD, Bloomberg Ticker: AFRIPRUD:NL, Financial Times Ticker: AFRIPRUD:LAG) announced its Unaudited Financial Statements for the period ended June 30th 2022, with a Gross Earnings of N1.99 Billion and Profit Before Tax of N1.16 Billion. The Company delivered an Earnings Per Share of 47Kobo.

Commenting on the result, The Managing Director/CEO of Africa Prudential, Mr. Obong Idiong, had this to say:

“Our results remain a testament of 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 355% 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 second half of the year, we will continue to deploy value to our customers leveraging on innovation and technology to transform their experience and increase shareholders’ wealth. ”

Income Statement:

• Revenue from contracts with customers: N0.93 Billion, compared to N0.52 Billion in H1 2021 (79% YoY Growth);
• Interest Income: N1.06 Billion, compared to N1.15 Billion in H1 2021 (8% YoY Decline);
• Gross Earnings: N1.99 Billion, compared to N1.67 Billion in H1 2021 (19% YoY Growth);
• Profit Before Tax: N1.16 Billion, compared to N0.97 Billion in H1 2021 (19% YoY Growth);
• Profit After Tax: N0.94 Billion, compared to N0.83 Billion in H1 2021 (13% YoY Growth);
• Earnings Per Share: 47kobo. (41kobo in H1 2021).

Balance Sheet:

• Total Assets: N38.18 Billion, compared to N15.76 Billion as at FY 2021 (142% YTD Growth);
• Total Liabilities: N29.49 Billion, compared to N6.99 Billion as at FY 2021 (322% YTD Growth);
• Shareholders’ Fund stood at N8.69 Billion, a 1% YoY decline from N8.77 Billion as at FY 2021.

This Earnings Press Release should be read in conjunction with the Unaudited Financial Statements for the period ended June 30th 2022. The Earnings Press Release and the Unaudited Financial Statements for the period ended June 30th 2022 are available on our website at https://africaprudential.com/investors/.  This analysis is dated July 20th 2022. Unless otherwise indicated, all amounts are expressed in Nigerian Naira, and have been primarily derived from the Company’s Financial Statements, prepared in accordance with the International Financial Reporting Standards (“IFRS”). The accounting policies used in the preparation of these financial statements are consistent with those used in the Company’s Unaudited Financial Statements for the period ended June 30th 2022. Additional information relating to the Company is available on the Company’s website.

ITEMS OF NOTE;

Comparing H1 2022 to H1 2021, we observed the following key items worthy of note:

• Revenue from contracts with customers: We recorded a 79% year-on-year growth in Revenue from contracts with customers, driven by a 355% year-on-year growth in digital technology services despite the 9% decline in Fees from Corporate Actions.
• Interest income: During the period, interest income declined 8% year-on-year on account of a 9% decline in the interest on loans and advances and a 53% decline in interest on short-term deposits during the period. On the other hand, Interest earned on bonds increased 22% year on year cushioning the effect of the significant decline from other interest income sources.
• Total operating expenses: Despite the 10% increase in total operating expenses, our cost-to-income ratio reduced by 4 percentage points to 43% relative to 47% in the corresponding period.
• Profit After Tax: Profit before Tax showed a 19% growth, while Profit after Tax was up 13% YoY due to a higher tax charge (19% in H1 22 relative to 15% in H1 21).
  Comparing H1 2022 to H1 2021, the following were observed in the Balance Sheet:
• Total Assets: During the period, the book value of total assets grew 142% year-to-date driven by an 2209% increase in cash and cash equivalents and a 431% in equity instruments.
• Total Liabilities: The company’s total liabilities also increased by 322% year-on-year due to a 368% growth in customers’ deposits and a 44% growth in creditors and accruals.
• Shareholder’s Wealth: Due to faster growth in liabilities relative to assets, total equity declined by 1% year-to-date.

Notice of HY 2022 Conference Call:

Sequel to the release of our HY 2022 result, we would be hosting a conference call for Investors and Analysts on Friday, July 29th, 2022. Click HERE to register in advance.

For further inquiries.

Anu Akindolire
Chief Financial Officer
[email protected]

• Africa Prudential Registrars Plc (AFRIPR.ng) on Africanfinancials