Africa Prudential Plc released its Q1 2021 Unaudited results for the period ended March 31st 2021. Africa Prudential’s Gross Earnings rose 11% y/y to ₦0.83 Billion, with interest and non–interest income contributing 63% and 37% respectively. Interest Income declined by 23% y/y to ₦0.47 Billion.
Income Statement:
- Revenue from contracts with customers: N0.36 Billion, compared to N0.13 Billion in Q1 2020 (172% YoY Increase);
- Interest Income: N0.47 Billion, compared to N0.61 Billion in Q1 2020 (23% YoY Decline);
- Gross Earnings: N0.83 Billion, compared to N0.74 Billion in Q1 2020 (11% YoY Increase);
- Profit Before Tax: N0.48 Billion, compared to N0.41 Billion in Q1 2020 (16% YoY Increase);
- Profit After Tax: N0.38 Billion, compared to N0.34 Billion in Q1 2020 (12% YoY Increase);
- Earnings Per Share: 19 Kobo (17Kobo in Q1 2020).
Balance Sheet:
- Total Assets: N31.12 Billion, compared to N17.73 Billion as at FY 2020 (75.6% YTD Increase);
- Total Liabilities: N23.42 Billion, compared to N9.36 Billion as at FY 2020 (150% YTD Increase);
- Shareholders’ Fund: N7.7 Billion, compared to N8.37 Billion as at FY 2020. (8% YTD Decrease)
Comparing Q1 2021 to Q1 2020, 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 172% year-on-year on the back of a 975% increase in fees from corporate actions, 144% growth in register maintenance and 27% increase in digital consultancy.
- Interest income: On the other hand, the company recorded a 23% Year-on-Year decline in interest income driven by the 19% decline in interest on loans and advances due to the low yield environment as interest income from Treasury bills declined 100%.
- Profit After Tax: This increased by 12% year-on-year, due to the 11% increase in gross earnings as well as an 18.6% decline in personnel expenses.
Comparing Q1 2021 to FY 2020, the following were observed in the Balance Sheet:
- Total Assets: In the first quarter of 2021, the total assets increased 75.6% on the back of a 1,243% surge in cash and cash equivalents as well as a 168% increase in trade receivables.
- Total Liabilities: The company total liabilities increased by 150% Year-till-date driven by a 160% increase in customers’ deposits which accounted for about 96% of the company’s liabilities.
- Shareholder’s Wealth: The shareholder’s wealth declined by 8% due to the 9% decline in retained earnings due to dividend paid by the company during the period.
