Assets Management of Nigeria (AMCON) has predicted a return to profit in 2018 after it experienced losses in 2017 due to the economic recession.
AMCON losses narrowed drastically as the economy rebounds from its worst recession in recent years. The loss narrowed from N164.9 billion in 2016 to N16.4 billion.
Recall that in 2016, AMCON had raised an alarm that worsening economic situation has made recovery of bad loans it acquired in 2011 very difficult.
In 2011, the corporation acquired 12,537 non-performing loans worth N1.7 trillion from 22 financial institutions, following the 2009 banking crisis.
In 2017 Gross earnings increased by 23 percent to N341.8 billion while a 21 percent increase in interest income to N42.6 billion as well as N41 billion sale of Keystone Bank helped boost performance even as operating expenses rose by 16 percent.
AMCON’s Executive Director, Aminu Ismail, revealed that the corporation’s cost during the year was rose as a result of an increase in the price of aviation fuel and overhead expenses for two airlines it has taken over, Arik Air and Aero Contractors.
He also announced plans to sell Aero contractors and they have appointed advisers for the divestment of Arik.
Recall that AMCON took over the management of the two airlines after the companies could not repay the huge debt owed some financial institutions.
Asset Management Corporation of Nigeria was established on the 19th of July 2010, when the President of the Federal Republic of Nigeria, Goodluck Jonathan, signed the AMCON Act into Law.
It was created to be a key stabilizing and re-vitalizing tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of banks in the country.