Africa Prudential Plc recently released its financial statements for the 12 months ended December 2017. Gross earnings increased from ₦2.4 billion in 2016 to ₦3.3 billion in 2017. Profit before tax moved from ₦1.4 billion in 2016 to ₦2.0 billion in 2017. Profit after tax also jumped sharply from ₦1 billion in 2016 to N1.7 billion in 2017.
Earnings per share also increased from ₦0.51 in 2106 to ₦0.86 in 2017.
The company has declared a dividend of ₦0.40 per share, representing a pay-out ratio of 46.5%.
Increase in net income was the profit driver
The sharp rise in profit was largely due to an increase in net interest income. Net interest income for the company represents income from held to maturity investments such as treasury bills, term deposits, commercial papers, banker’s acceptance and bonds.
Net interest income increased from ₦1.4 billion in 2016 to ₦2.3 billion in 2017. The increase in net income was largely due to the income from treasury bills which rose from ₦629 million in 2016 to ₦1.4 billion in 2017.
Africa Prudential Plc,formerly UBA Registrars Ltd, was incorporated as a private limited liability company on 23rd March, 2006 to take over the registrar services previously operated as a department under UBA Global Market Limited. The company was listed on 17 January, 2013. The company renders share registration services to both public and private companies.
Africa Prudential Plc closed at ₦4.74 in yesterday’s trading session on the NSE, up 12.32% year to date.