Africa Prudential, listed Registrar, Investor Services and Business Support Solutions provider, has announced that it made N341.8m in the first quarter of 2020.
The profit represents a slowdown in profit of 10% following a decline in revenue due to the unanticipated COVID-19 pandemic which disrupted business activities both domestically and globally.
“The COVID19 pandemic had threatened the smooth operations of our business and that of our clients’ mounting enormous pressure on our revenue sources particularly the Revenue from contract with customers, the resultant effect was the reduction recorded in our gross earnings for Q1 2020,” said Obong Idiong, Managing Director/ceo of Africa Prudential.
Read also for more insight about Africa prudential: www.africaprudential.com
The bottom-line was also affected by a 25% decline in profit before finance costs and tax as well as an increase in the company’s operating expenses amid the pandemic.
While Gross Earnings fell to N743.36m compared to N869.3m year-on-year in Q1,
Africa Prudential saw over 900% surge in its digital consultancy revenue in a boon to its diversification to digital technology business.
Interest Income in the period rose by 3% Year-on-year driven by a 23% surge in the interest realized from loans and advances.
Other income also rose some 2% to N2.89m while operating and personnel expenses saw an uptick in the quarter.
Compared to full- year 2019, Return on average assets (ROOA) slowed by 1 percentage point to 7% in Q1 2020, while Return on average equity (ROAE) dropped by 2 percentage points to 16%.
Nonetheless, Africa Prudential was more efficient at utilizing
