AUDITED RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2022
OPERATIONAL EFFICIENCY: 17% YOY GROWTH IN GROSS EARNINGS
This Earnings Press Release should be read in conjunction with the Audited Financial Statements for the period ended December 31st 2022. The Earnings Press Release and the Audited Financial Statements for the period ended December 31st 2022 are available on our website at https://africaprudential.com/investors/. This analysis is dated March 1 2023. 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 Audited Financial Statements for the period ended December 31st 2022. Additional information relating to the Company is available on the Company's website. https://africaprudential.com/investor-relations/
Lagos, Nigeria - March 1, 2023 - Africa Prudential Plc
(NSE Ticker: AFRIPRUD, Bloomberg Ticker: AFRIPRUD: NL, Financial Times Ticker: AFRIPRUD: LAG)
announced its Audited Financial Statements for the period ended December 31st, 2022, with Gross Earnings of N4.1 Billion and Profit Before Tax of N2.17 Billion. The Company delivered an Earnings Per Share of 75Kobo and proposed a dividend per share of N0.50k.
Earnings | FY 2022 | FY 2021 |
Gross Earnings (N'mn) | 4,132 | 3,521 |
Operating income (N'mn) | 4,164 | 3,618 |
PBT (N'mn) | 2,166 | 2,006 |
Financial Position | ||
Total Assets (N'mn) | 19,271 | 15,764 |
Total Liabilities (N'mn) | 9,885 | 6,993 |
Shareholders' funds (N'mn) | 9,386 | 8,771 |
Income Statement:
- Revenue from contracts with customers: N1.9 Billion, compared to N1.38 Billion in FY 2021 (36% YoY Growth);
- Interest Income: N2.23 Billion, compared to N2.14 Billion in FY 2021 (4% YoY Growth);
- Gross Earnings: N4.1 Billion, compared to N3.5 Billion in FY 2021 (17% YoY Growth);
- Profit Before Tax: N2.16 Billion, compared to N2.01 Billion in FY 2021 (8% YoY Growth);
- Profit After Tax: N1.49 Billion, compared to N1.41 Billion in FY 2021 (6% YoY Growth);
- Earnings Per Share: 75kobo. (71kobo in FY 2021).
- Proposed dividend of N0.50k for FY 2022, same as FY 2021.
Balance Sheet:
- Total Assets: N19.27 Billion, compared to N15.75 Billion as at FY 2021 (22% YoY Growth);
- Total Liabilities: N9.89 Billion, compared to N6.99 Billion as at FY 2021 (41% YoY Growth);
- Shareholders' Fund stood at N9.39 Billion, a 7% YoY growth from N8.77 Billion as at FY 2021.
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ITEMS OF NOTE.
Comparing FY 2022 to FY 2021, we observed the following key items worthy of note:
- Revenue from contracts with customers: During the period under review, Revenue from contracts with customers increased by 36%, driven by a 96% year-on-year growth in digital technology services.
- Interest income: We recorded a 4% year-on-year growth in interest income owing to an increase in the available investible funds driven by a 23% growth in total assets.
- Total operating expenses: The cost-to-income ratio was 48% in FY 2022. Total expenses increased slightly by 24% YoY.
- Profit After Tax: 6% YoY growth, driven by growth in revenue
Comparing FY 2022 to FY 2021, the following were observed in the Balance Sheet:
- Total Assets: During the period, the book value of total assets increased by 22% year-on-year on account of an increase in the value of debt instruments.
- Total Liabilities: The company's total liabilities increased by 41% year-on-year due to a 45% increase in customers' deposits.
- Shareholder's Wealth: The company's shareholder's wealth increased by 7%, driven by 7% growth in retained earnings
More information can be found at: https://africaprudential.com/
For further enquiries:
Anu Akindolire
Chief Financial Officer
Anu.akindolire@africaprudential.com
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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2022
In thousands of Nigerian Naira | 31-Dec-22 | 31-Dec-21 | ||
Revenue from contracts with customers | 1,377,189 | |||
1,903,217 | ||||
Interest income calculated using effective interest method | 2,229,631 | 2,144,065 | ||
Gross earnings | 3,521,254 | |||
4,132,848 | ||||
Other income | 32,182 | 96,728 | ||
Credit loss reversal/ (expenses) | -27,063 | |||
22,281 | ||||
Personnel expenses | -781,548 | -624,676 | ||
Other operating expenses | -1,160,425 | -878,009 | ||
Depreciation of property and equipment | -45,883 | -47,212 | ||
Depreciation of right of use assets | -6,774 | -5,154 | ||
Amortisation of intangible assets | -25,462 | -28,335 | ||
Profit Before Finance cost and Tax | 2,167,219 | 2,007,533 | ||
Finance costs | -1,057 | -1,462 | ||
Profit Before Tax | 2,166,162 | 2,006,071 | ||
Income tax expense | -672,913 | -591,404 | ||
Profit after tax | 1,493,249 | 1,414,667 | ||
Other Comprehensive Income | ||||
Other comprehensive income that will not be reclassified to profit | ||||
or loss in subsequent periods (net of tax): | ||||
Net (loss)/gain on quoted equity instruments at fair value through | ||||
27,025 | -13,530 | |||
other comprehensive income | ||||
- | ||||
Revaluation gain on building (net of tax) | 94,524 | |||
Total Other Comprehensive Income, net of income tax | 121,549 | -13,530 | ||
Total comprehensive income for the year, net of tax | 1,614,799 | 1,401,137 | ||
Basic and diluted earnings per share | 75 | 71 | ||
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STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2022
In thousands of Nigerian Naira | 31-Dec-22 | 31-Dec-21 |
ASSETS | ||
Cash and cash equivalents | 850,644 | 866,192 |
Equity instruments at fair value through OCI | 3,001,515 | 274,490 |
Debt instruments at amortised cost | 12,787,888 | 10,902,922 |
Deposit for shares | 270,000 | 2,770,000 |
Trade and other receivables | 1,514,551 | 625,626 |
Property and equipment | 690,671 | 256,739 |
Right-of-use-assets | 13,549 | 6,872 |
Intangible assets | 141,868 | 61,335 |
TOTAL ASSETS | 19,270,686 | 15,764,176 |
LIABILITIES | ||
Customers' deposits | 8,985,030 | 6,199,925 |
Creditors and accruals | 144,957 | 104,857 |
Lease liabilities | 8,777 | 6,519 |
Current income tax payable | 700,028 | 629,429 |
Deferred tax liabilities | 46,306 | 52,656 |
TOTAL LIABILITIES | 9,885,098 | 6,993,386 |
SHAREHOLDER'S EQUITY |
Share capital
Share premium
Fair value reserve
Retained earnings
Revaluation reserve
TOTAL EQUITY
TOTAL EQUITY AND LIABILITIES
1,000,000
624,446
32,107
7,563,915
165,120
9,385,588
19,270,686
1,000,000
624,446
5,082
7,070,666
70,596
8,770,790
15,764,176
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EDITOR'S COMMENT
Africa Prudential Plc is a leading business solution and share registration service provider.
Africa Prudential is leveraging technology to transform service experience across its various business lines.
More information can be found at:https://africaprudential.com/investor-relations/
Media Enquiries: EmailInvestorrelations@africaprudential.com; ir@arrhenn.com
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time to time, the Company makes written and/or oral forward-looking statements, including in this press release and other communications. In addition, representatives of the Company may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are intended to be forward-looking statements.
Forward-looking statements include, but are not limited to, statements regarding the Company's objectives and strategies to achieve them, and the Company's anticipated financial performance. Forward-looking statements are typically identified by words such as "will", "should", "believe", "expect", "anticipate", "intend", "estimate", "may" and "could". Any forward-looking statements contained in this presentation represent the views of management only as of the date hereof and are presented for the purpose of assisting the Company's investors and analysts in understanding the Company's financial position, objectives, priorities, and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes.
The Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.
_____________________
Obong Idiong
Managing Director/Chief Executive Officer
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Africa Prudential plc published this content on 03 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2023 16:19:10 UTC.