Royal Exchange Plc
(RC: 6752)
Consolidated Unaudited Financial Statements 30 September 2023
ROYAL EXCHANGE PLC RC: 6252 | |
New Africa House | T. 01-4606690 - 01-4606699 |
31 Marina | E. info@royalexchangeplc.com |
P.O. Box 112, Lagos | W. www.royalexchangeplc.com |
Directors:
Mr. Kenneth Ezenwani Odogwu (Chairman), Chief Anthony Ikemefuna Idigbe (SAN), Alhaji Ahmed Rufa'i Mohammed, Mr. Adeyinka Adekunle Ojora, Mr. Hewett
Royal Exchange Plc Annual Report and Consolidated Financial Statements
2
Table of Contents | |
Corporate information | 3 |
Directors Report | 4 |
Report of Corporate Governance | 9 |
Share Dealing Policy | 13 |
Free Float Report | 17 |
Statement of Directors' Responsibilities in Relation to the Financial Statements | 18 |
Report of the Audit Committee | 19 |
Independent Auditors report | |
Result at a glance | 20 |
Consolidated Statements of Financial Position | 21 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 22 |
Statement of Changes in Equity | 23 |
Consolidated Statements of Cashflows | 26 |
Notes to the financial statements | 28-125 |
Other financial information | |
Value added statement | 127 |
Five Year Financial summary | 128 |
ROYAL EXCHANGE PLC | |||
RESULTS AT A GLANCE | |||
FOR YEAR ENDED 30 SEPTEMBER 2023 | |||
30-Sep-23 | 31-Dec-22 | % | |
EARNED INCOME | 503,477 | 249,612 | 102 |
PROFIT/(LOSS) BEFORE TAX | 267,692 | (148,333) | 280 |
PROFIT/(LOSS) AFTER TAX | 249,934 | (150,474) | 266 |
SHARE CAPITAL | 2,572,685 | 2,572,685 | - |
SHAREHOLDERS' FUND | 2,364,933 | 2,104,781 | 12 |
PROFIT/(LOSS) PER SHARE (NAIRA) - BASIC | 5 | (6) | 187 |
STOCK EXCHANGE QUOTATION (NAIRA) | 0.50 | 0.88 | (43) |
Consolidated Statements of Financial Position | - | (0) | 0 | 0 |
At 30 September 2023 |
Unaudited | Audited | Unaudited | Audited | |||
Group | Group | Company | Company | |||
In thousands of Naira | Note | 30-Sep-23 | 31-Dec-22 | 30-Sep-23 | 31-Dec-22 | |
ASSETS | 709,172 | 608,573 | 157,034 | 127,890 | ||
Cash and cash equivalents | 5 | |||||
Loans and advances to customers | 6 | 905,588 | 1,140,139 | - | - | |
Advances under finance lease | 86,706 | 68,431 | - | - | ||
Investment securities: | 25,051 | 30,820 | ||||
Measured at Fair Value Through Profit or Loss (FVPL) | 8(a) | 4,833 | 17,440 | |||
Measured at Fair Value Through Profit or Loss (FVOCI) | 8(b) | - | - | - | - | |
Amortized Cost | 8(c) | - | - | - | - | |
Investment in subsidiaries | 9 | - | - | 509,389 | 509,389 | |
Assets classified as held for sale | 9(b) | - | - | - | - | |
Trade receivables | 10 | - | - | - | - | |
Reinsurance assets | 11 | - | - | - | - | |
Deferred acqusition cost | 12 | - | - | - | - | |
Other receivables and prepayments | 13 | 178,750 | 163,342 | 141,182 | 105,361 | |
Investment in associates | 14 | 5,405,711 | 5,080,554 | 5,405,711 | 5,080,554 | |
Investment properties | 15 | - | - | - | - | |
Property and equipment | 17 | 15,543 | 17,440 | 2,479 | 1,493 | |
Right of Use Asset | 17(b) | - | 942 | 0 | 942 | |
Intangible assets | 18 | - | - | - | - | |
Employees retirement benefit asset (Net) | 19 | - | - | - | - | |
Statutory deposits | 20 | - | - | - | - | |
Deferred tax assets | 21 | - | - | - | - | |
Investment Properties classified as held for sale | 16 | - | - | - | - | |
Deposit for shares | 14(c ) | 39,000 | 39,000 | 39,000 | 39,000 | |
Total assets | 7,365,521 | 7,149,241 | 6,259,629 | 5,882,071 | ||
LIABILITIES | 1,989,952 | 544,777 | 734,949 | 544,777 | ||
Borrowings | 29 | |||||
Deferred Income | 22 | - | - | - | - | |
Trade payables | 23 | - | - | - | - | |
Other liabilities | 24 | 2,750,058 | 3,037,411 | 2,941,617 | 2,996,833 | |
Depositors' funds | 25 | - | 1,226,428 | - | - | |
Insurance contract Liabilities | 26 | - | - | - | - | |
Investment contract Liabilities | 27 | - | - | - | - | |
Finance Lease Obligation | 29 | 168 | 168 | 14,827 | 13,699 | |
Current income tax liabilities | 28(b) | 253,913 | 234,702 | 250,349 | 232,594 | |
Employees benefit liability | 19(a) | 4,515 | 974 | 974 | 974 | |
Deferred tax liabilities | 21 | - | - | - | - | |
Deposit for Shares | 1,985 | - | - | - | ||
Total liabilities | 5,000,591 | 5,044,460 | 3,942,716 | 3,788,877 | ||
EQUITY | 2,572,685 | 2,572,685 | 2,572,685 | 2,572,685 | ||
Share capital | 30 | |||||
Share premium | 31 | 2,690,936 | 2,690,936 | 2,690,936 | 2,690,936 | |
Contingency reserve | 32 | - | - | - | - | |
Treasury shares | 33 | - | - | - | - | |
Retained earnings | 34 | (3,290,545) | (3,612,013) | (2,901,187) | (3,124,904) | |
Other component of equity | 35( c ) | 391,857 | 453,173 | (45,524) | (45,524) | |
Capital and reserves attributable to owners | 2,364,933 | 2,104,781 | 2,316,912 | 2,093,193 | ||
Non-controlling interests | 35( d ) | - | - | - | - | |
Total Equity | 2,364,933 | 2,104,781 | 2,316,912 | 2,093,193 | ||
Total equity & liabilities | 7,365,521 | 7,149,241 | 6,259,629 | 5,882,070 |
The Financial Statements was approved by the board of directors on 16th October, 2023 and signed on its behalf by:
Kenneth Odogwu | Anthony Ogunade | |
Chairman | for: Ag. Chief Financial Officer | |
(FRC/2013/NBA/00000004195) | (FRC/2023/PRO/ICAN/001/580489) |
The statement of significant accounting policies and the accompanying notes form an integral part of these financial statements.
Consolidated Statement of Profit or Loss and Other Comprehensive Income | ||||||
For period ended 30 September 2023 | ||||||
Audited | Audited | |||||
Group | Group | Company | Company | |||
In thousands of Naira | Note | 30-Sep-23 | 31-Dec-22 | 30-Sep-23 | 31-Dec-22 | |
Gross premium written: | 36(a) | - | - | - | - | |
Unearned premium | - | - | - | - | ||
Gross premium income | - | - | - | - | ||
Reinsurance expenses | 36(b) | - | - | - | - | |
Net premium income | - | - | - | - | ||
Fees and commission income | 37 | - | - | - | - | |
Net underwriting income | - | - | - | - | ||
Insurance claims and benefits incurred | 38 | - | - | - | - | |
Insurance claims and benefits incurred - recoverable from reinsurers | 39 | - | - | - | - | |
Net claims expenses | - | - | - | - | ||
Changes in insurance contract liabilities | - | - | - | - | ||
Underwriting expenses | 40 | - | - | - | - | |
Total underwriting expenses | - | - | - | - | ||
Underwriting profit | - | - | - | - | ||
Interest Income | 41 | 217,657 | 262,173 | 3,959 | 3,377 | |
Interest Expense | 41 | (137,618) | (229,222) | (19,410) | (53,410) | |
Net Interest Income | 80,039 | 32,951 | (15,451) | (50,033) | ||
Investment and other income | 42 | 136,460 | 67,015 | 97,872 | 3,668 | |
Share of profit/loss on investment in associate | 14 | 268,344 | 240,327 | 268,344 | 240,327 | |
Net fair value gain or loss on financial assets | 43 | (7,778) | - | (15,857) | - | |
Charge/write-back of impairment allowance | 44 | 61 | (90,877) | 61 | (117,708) | |
ECL Impairment Allowance | 44(a) | - | - | - | - | |
Operating income (Revenue) | - | - | - | - | ||
Other operating income | 45 | 26,351 | 196 | 26,351 | 196 | |
Foreign exchange gains/(losses) | 46 | - | - | - | - | |
Net Income | 503,477 | 249,612 | 361,321 | 76,450 | ||
Management expenses | 47 | (235,785) | (397,945) | (119,849) | (239,576) | |
Total expenses | (235,785) | (397,945) | (119,849) | (239,576) | ||
Profit/(Loss) before tax | 267,692 | (148,333) | 241,471 | (163,126) | ||
Minimum tax | 28(a) | (17,757) | - | (17,757) | - | |
Income taxes | 28(a) | - | (2,141) | - | (34) | |
(Loss)/Profit after taxation from continuing operations | 249,934 | (150,474) | 223,714 | (163,160) | ||
Discontinued operations: | - | (392,664) | - | - | ||
Loss for the year from discontinued operations | 49 | |||||
Gain/(Loss) on disposal of Subsidiary | 15(c) | - | 254,666 | - | 352,900 | |
(Loss)/Profit after taxation from discontinued operations | - | (137,998) | - | 352,900 | ||
(Loss)/Profit after taxation for the year | 249,934 | (288,472) | 223,714 | 189,740 | ||
Profit/(Loss) is attributable to: | 249,934 | (289,205) | 223,714 | 189,740 | ||
Owners of Royal Exchange Plc | ||||||
Non-controlling interest | - | 733 | - | - | ||
249,934 | (288,472) | 223,714 | 189,740 | |||
Other comprehensive income, net of tax | ||||||
Items that will never be reclassified subsequently to profit or loss: | - | - | - | - | ||
Net actuarial gains/(losses) of defined benefit obligations | ||||||
Share of returns in associates | - | - | - | - | ||
Items that are or may be reclassified subsequently to profit or loss: | - | - | - | - | ||
Changes in fair value of FVOCI investments | ||||||
Total other comprehensive income, net of tax | - | - | - | - | ||
Total comprehensive income for the period | 249,934 | (288,472) | 223,714 | 189,740 | ||
Total comprehensive income attributable to: | 249,934 | (288,472) | 223,714 | 189,740 | ||
Owners of Royal Exchange Plc | ||||||
Non-controlling interest | - | - | - | - | ||
249,934 | (288,472) | 223,714 | 189,740 | |||
Total comprehensive income for the period attributable to owners of Royal | ||||||
Exchange Plc arising from: | ||||||
Continued operations | 249,934 | (288,472) | 223,714 | 189,740 | ||
Loss for the year from Discontinued operations | - | - | - | - | ||
Gains/(Loss) on disposal of Subsidiary | - | - | ||||
249,934 | (288,472) | 223,714 | 189,740 | |||
Profit/(Loss) per share - Basic and diluted (kobo) | 5 | (6) | 4 | 4 |
The statement of significant accounting policies and the accompanying notes form an integral part of these financial statements.
Statement of Changes in Equity
At 30th September 2023
Group | ||||||||||||||||||
In thousands of Naira | Other components of equity | |||||||||||||||||
Actuarial | Fair | Other | Equity attributable | Non- | ||||||||||||||
Share | Share | Contingency Retained | Treasury | Regulatory | Compone | |||||||||||||
Gain/Loss | value | Total | to Parent's | controlling | Total Equity | |||||||||||||
Capital | Premium | Reserve | Earnings | Shares | risk reserve | nt of | ||||||||||||
Reserve | reserve | Shareholders | Interests | |||||||||||||||
Equity | ||||||||||||||||||
At 1 January 2023 | 2,572,685 | 2,690,936 | - | (3,612,013) | - | 504,801 | (162) | (51,470) | - | 453,171 | 2,104,779 | - | 2,110,739 | |||||
- | ||||||||||||||||||
Fair value reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
Share of returns in associates | - | - | - | - | - | - | - | - | - | - | - | |||||||
Net actuarial gains/losses | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
(Loss)/Profit for the year | - | - | - | 249,938 | - | - | - | - | - | 249,938 | - | 249,938 | ||||||
- | ||||||||||||||||||
- | ||||||||||||||||||
Total comprehensive income | 2,572,685 | 2,690,936 | - | (3,362,075) | - | 504,801 | (162) | (51,470) | - | 453,171 | 2,354,717 | - | 2,360,677 | |||||
Share of newly recognized Non-controlling Interest (NCI) | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
Disposal on Non-controlling Interest (NCI) | - | - | ||||||||||||||||
Contigency reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
Share of returns in associates | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
Retained earnings | - | - | - | 71,530 | - | - | - | - | - | 71,530 | - | 71,530 | ||||||
Transfer to contingency reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
Transfer to regulatory reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||||||
- | - | - | - | - | - | - | - | - | - | - | - | |||||||
Transactions with owners in their capacity as owners: | - | - | - | - | ||||||||||||||
- | - | - | - | |||||||||||||||
Other reserve | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||
Adjustment for divested subsidairies | - | - | - | - | - | - | - | - | - | |||||||||
At 30th September 2023 | 2,572,685 | 2,690,936 | - | (3,290,545) | - | 504,801 | (162) | (51,470) | - | 453,171 | 2,426,247 | - | 2,432,207 |
Royal Exchange Plc
Annual Report and Consolidated Financial Statements
Statement of Changes in Equity
At 31st December 2022
Group | ||||||||||||||
In thousands of Naira | Other component of equity | |||||||||||||
Actuarial | Fair | Other | Equity attributable | Non- | ||||||||||
Share | Share | Contingency Retained | Treasury | Regulatory | Compone | |||||||||
Gain/Loss | value | Total | to Parent's | controlling | Total Equity | |||||||||
Capital | Premium | Reserve | Earnings | Shares | risk reserve | nt of | ||||||||
Reserve | reserve | Shareholders | Interests | |||||||||||
Equity | ||||||||||||||
At 1 January 2022 | 2,572,685 | 2,690,936 | 417,436 | (4,258,421) | - | 472,006 | 49,058 | (51,470) | - | 469,594 | 1,892,231 | 117,248 | 2,015,440 | |
- | ||||||||||||||
Fair value reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||
Changes in fair value of FVOCI investments | - | - | - | - | - | - | - | - | - | - | - | |||
Share of returns in associates | - | - | - | - | - | - | - | - | - | - | - | - | ||
Net actuarial gains/losses | - | - | - | - | - | - | - | - | - | - | - | - | ||
Loss/(profit) for the year | - | - | - | (288,472) | - | - | - | - | - | (288,472) | (30,192) | (318,664) | ||
- | ||||||||||||||
Total comprehensive income | 2,572,685 | 2,690,936 | 417,436 | (4,546,893) | - | 472,006 | 49,058 | (51,470) | 469,594 | 1,603,759 | 87,056 | 1,696,776 | ||
Share of newly recognized Non-controlling Interest (NCI) | - | - | - | - | - | - | - | - | - | - | (87,056) | (87,056) | ||
Disposal on Non-controlling Interest (NCI) | - | - | ||||||||||||
Contigency reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||
Share of returns in associates | - | - | - | - | - | - | - | - | - | - | - | - | ||
Retained earnings | - | - | - | - | - | - | - | - | - | - | - | - | ||
Transfer to contingency reserve | - | - | - | - | - | - | - | - | - | - | - | - | ||
Transfer to regulatory reserve | - | - | - | - | - | 32,796 | 14,624 | - | 47,420 | 47,420 | - | 47,420 | ||
Transactions with owners in their capacity as owners: | - | |||||||||||||
- | - | - | - | - | - | - | - | - | - | - | - | |||
Other reserve | ||||||||||||||
Adjustment for loss of control | (417,436) | 934,880 | - | (63,844) | - | (63,844) | 453,600 | - | 453,600 | |||||
At 31st December 2022 | 2,572,685 | 2,690,936 | - | (3,612,013) | - | 504,801 | (162) | (51,470) | 453,171 | 2,104,779 | - | 2,110,739 |
2
Statement of Changes in Equity
At 30th September 2023
Company
Other Component of Equity | |||||||||||
Share | Share | Retained | Actuarial | Other | Equity attributable | Non-controlling | Total Equity | ||||
Capital | Premium | Earnings | Gain/Loss | Component of | to Parent's | Interests | |||||
In thousands of Naira | Reserve | Equity (Total) | Shareholders | ||||||||
At 1 January 2023 | 2,572,685 | 2,690,936 | (3,124,900) | (45,524) | (45,524) | 2,093,197 | - | 2,093,197 | |||
- | - | ||||||||||
Profit for the period | - | - | 223,716 | - | - | 223,716 | - | 223,716 | |||
Net actuarial gains/losses | - | - | - | - | - | - | - | - | |||
Share of current year results in associates - OCI | - | - | - | ||||||||
Total comprehensive income | 2,572,685 | 2,690,936 | (2,901,184) | (45,524) | (45,524) | 2,316,913 | - | 2,316,913 | |||
Transactions within equity: | - | - | - | - | - | - | - | - | |||
Dividend paid | |||||||||||
At 30th September 2023 | 2,572,685 | 2,690,936 | (2,901,184) | (45,524) | (45,524) | 2,316,913 | - | 2,316,913 | |||
Statement of Changes in Equity | |||||||||||
At 31st December 2022 | |||||||||||
Company | |||||||||||
Other Component of Equity | |||||||||||
Share | Share | Retained | Actuarial | Other | Equity attributable | Non-controlling | Total Equity | ||||
Capital | Premium | Earnings | Gain/Loss | Component of | to Parent's | Interests | |||||
In thousands of Naira | Reserve | Equity (Total) | Shareholders | ||||||||
At 1 January 2022 | 2,572,685 | 2,690,936 | (3,314,643) | (45,524) | (45,524) | 1,903,453 | - | 1,903,453 | |||
Profit for the | - | - | - | - | - | - | - | - | |||
Net actuarial gains/losses | - | - | 189,739 | - | - | 189,739 | - | 189,739 | |||
Share of current year results in associates - OCI | - | - | - | - | - | - | - | ||||
- | |||||||||||
Total comprehensive income | 2,572,685 | 2,690,936 | (3,124,904) | (45,524) | (45,524) | 2,093,193 | - | 2,093,193 | |||
Transactions within equity: | - | - | - | - | - | - | - | - | |||
Dividend paid | |||||||||||
At 31st December 2022 | 2,572,685 | 2,690,936 | (3,124,900) | (45,524) | (45,524) | 2,093,193 | - | 2,093,193 |
Consolidated Statements of Cashflows
At 30 September 2023
In thousands of Naira | Audited | Audited | |||
Group | Group | Company | Company | ||
Notes | 30-Sep-23 | 31-Dec-22 | 30-Sep-23 | 31-Dec-22 | |
(Loss)/Profit for the year | 249,934 | (288,472) | 223,714 | 189,739 | |
Add: Minimum tax | 17,757 | - | 17,757 | - | |
Add: Income tax | 28(a) | - | 2,141 | - | 34 |
Profit before taxes | 267,692 | (286,331) | 241,471 | 189,773 | |
Adjustments for: | |||||
ECL Impairment Allowance | 44 | - | - | - | - |
Charge/(write-back) of impairment allowance | 44 | - | 90,877 | - | 117,708 |
Depreciation on property and equipment | 17 | 5,498 | 6,536 | 987 | 389 |
Depreciation on Right of Use Asset | 17(b) | (942) | - | (941) | 3,762 |
Amortization of intangible assets | 18 | - | 1,618 | - | - |
Profit/(Loss) on disposal of property and equipment | 45 | - | - | - | - |
Profit/(Loss) on disposal of Investment property | - | - | - | - | |
Income from Investment management | (74) | ||||
Dividend from investment in subsidiaries | 42 | - | - | - | - |
Fair value gain on recognition of associates | (29) | - | |||
Income on disposal of equities (FVTPL & FVTOCI) | (29) | (29) | |||
Dividend income on equity investments (FVTOCI & FVTPL) | 42 | - | (13,501) | - | (455) |
Rental income | 45 | - | - | - | - |
Interest income | 41 | 217,657 | (262,173) | 3,959 | (3,377) |
Interest expense on borrowings | 41 | (137,618) | 225,150 | (19,410) | 53,410 |
Foreign exchange (loss)/gains | 46 | - | - | - | - |
Fair value gain/(loss) on FVTPL investment securities | 43 | (12,282) | 593 | (12,607) | 13 |
Fair value gain/(loss) on FVTPL investment properties | 43 | - | - | - | - |
Loss on disposal of discontinued operations | 392,664 | - | |||
Fair value gain/(loss) on disposal of investment in subsidiaries | 42 | - | (254,666) | - | (352,900) |
Adjustment on derecognition of Investment in associates | (56,815) | (56,815) | - | ||
Share of loss/(profit) of associate | 14(a) | (268,344) | (240,327) | (268,344) | (240,327) |
Movement in deferred tax assets | 201,592 | - | |||
Non-cash movement in current tax liabilities | (7,522) | (275) | |||
14,846 | (145,622) | (111,698) | (232,308) | ||
Changes in working capital: | (74,323) | (60,963) | - | - | |
Loans and advances to customers | 50(viii) | ||||
Advance under finance lease | 50(ix) | (2,394) | 36,147 | - | - |
Trade receivables | 50(iii) | - | 17,021 | - | - |
Re-insurance asset | 50(iv) | - | - | - | - |
Investment securirties at fair value through profit or loss | 47 | 46 | |||
Deferred acquisition cost | - | 393 | - | - | |
Other receivables and prepayment | 50(ii) | 35,820 | (152,341) | 35,821 | 79,583 |
Deferred income | - | - | - | - | |
Trade and other payables | - | - | - | - | |
Other liabilities | 123,031 | 1,534,773 | (55,216) | 2,211,432 | |
Depositors' funds | 50(x) | (34,500) | (140,204) | - | - |
Statutory deposit | - | - | - | - | |
Investment contract liabilities | - | - | - | - | |
Changes in unearned premium | 50(vii) | - | 196,900 | - | - |
Changes in provision for outstanding claims | 50(vi) | - | (127,555) | - | - |
Changes in employee retirement benefits | 50(i) | - | (3,194) | - | - |
62,479 | 1,155,402 | (131,093) | 2,058,753 | ||
Income tax paid | 28(b) | (17,023) | - | (17,023) | - |
Employee benefits paid | 19(f)(i) | - | - | - | - |
Interest expense paid | (137,618) | - | - | - | |
Net cash provided by operating activities | (92,162) | 1,155,402 | (148,116) | 2,058,753 | |
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Royal Exchange plc published this content on 23 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2023 06:58:40 UTC.