• Thursday, February 29, 2024
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eTranzact grows profit after tax by 157.8%

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Nigeria’s payment industry expects more transaction processing going forward as eTransact International Plc, one of Africa’s leading providers of mobile banking and payment services, has recorded 157.8 percent in its profit after tax, in one year.

The company’s profit after tax increased to N1.17 billion in the financial year ended December 31, 2022, from N455.74 million in 2012.

The company’s improved financial performance and profitability were driven by the increased growth in the volume of transactions processed by providing switching services, especially through SwitchIT.

Wole Abegunde, the chairman who announced the financial performance of the Financial technology service provider at the 19th annual general meeting in Lagos, described 2022 as a significant year in the history of the company’s financial performance.

The gross profit of the company grew by 102.54 percent to N5.68 billion in 2022 compared with N2.80 billion recorded in the corresponding period.

Shareholders’ funds increased by 284.30 percent to N9.27 billion in the year under review from N2.41 billion in 2021.

Abegunde said the focus and expansion of the company’s core switching services have been pivotal in the improvement of the company’s performance.

“The landmark achievement is down to the management’s drive for excellence and demonstration of the commitment of the management and the board to ensure maximum returns on the investment of shareholders. The Company will not relent on the performance and will seek more business opportunities to boost subsequent financial results,” he said.

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Furthermore, he said, “As a company, we fully understand the benefits of strategic alliances and the potential business opportunities these can create. We fostered new relationships, enhanced and deepened existing ones and explored newer opportunities within our ongoing associations with existing partners. We are positive that our alliances will lead to improved performances in the years ahead.”

Speaking at the annual general meeting, Olaniyi Toluwalope, managing director, said eTranzact processed over N50 trillion in value of total transactions processed in 2022. The value increased significantly in comparison to the N39 trillion processed in 2021. The company is well positioned and has enhanced the capacity to further process more transactions going forward.

He noted that the total volume and value of transactions processed have continued to increase tremendously year on year, in line with the development and expansion of the payments/electronic payments industry in Nigeria. The volume of electronic transactions peaked at the highest in five years in 2022, with a total value of N387 trillion. The huge growth is premised on the shift of more consumers towards the use of electronic banking channels for financial transactions.