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 02 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2023 10:17:05 UTC.