Africa Prudential reports 6% drop in Q3 ’20 PAT

Charles Abuede

Africa Prudential Plc, a leading registrar, investor services and business support solutions provider, said it recorded a six per cent marginal decline in its profit after tax (PAT) at N1.41 billion for the period ended 30 September, 2020, as against N1.50 billion recorded in the same period last year.

It also reported 11 per cent fall in its profit before tax (PBT) to N1.57 billion from N1.76 billion posted in the 2019 half-year report.

In its Q3 2020 unaudited financials filed with the Nigerian Stock Exchange, the business support solutions provider, highlighted that during the period, it recorded a 30 per cent year on year decline in its revenue from contracts with customers due to the impact of covid-19 on its key clients, which resulted in renegotiation and repricing.

According to the firm, the company’s fees from corporate actions grew by 25.79 per cent; register maintenance grew by 47.49 per cent and revenue from digital technology consultancy, significantly increased by 264.63 per cent year-on-year.

It noted that despite the poor yield environment, the company’s interest income increased by six per cent year-on-year, noting that this increase was fueled by 19.83 per cent increase in interest income on loans and advances, and 780 per cent increase in interest income on bonds.

“The total increase in interest income was achieved despite 45.94 per cent reduction in interest income on treasury bills and 87.95 per cent reduction in interest income on short-term deposits,” the company said in the filing.

Obong Idiong, managing director and chief executive officer, said the covid-19 pandemic has had a negative economic impact on the company’s traditional income lines.

“While the negative economic impact of the Covid-19 continues to reflect on our traditional income lines, the transition of the company from a traditional registrar business to a technology business, deploying technology to transform the registrar, cooperative, e-commerce, and digital technology play, could not have come at a better time. We are confident that as the company’s new businesses continue to gather momentum, we will continue to deliver sustainable value to our investors.

“Among the gradual result of the transformation process is the 263 per cent year-on-year growth in digital technology consultancy income. We also grew our investment income by 6 per cent year-on-year through an efficient allocation of investible fund despite the prevailing low-interest rate regime.

“We will continue to consolidate on our gains in the digital technology space to deliver great value and exceptional experience to clients across all our touch points,” Idiong assured the market.

Meanwhile, due to the 121.9 per cent increase in the reserve fair value, there was a mild decline in the shareholder’s wealth by 0.2 per cent year-to-date.