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Africa Prudential’s profit after tax rises 5% in H1
Africa Prudential recorded a 5 per cent increase in its half-year profit-after-tax. Managing Director and CEO, Obong Idiong says the impact of the Covid-19 pandemic was evident in the first-quarter numbers, but the company has since put some structures in place to maximize the current business cycle. He joins CNBC Africa to unpack the company’s half-year earnings.
Tue, 28 Jul 2020 13:05:09 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Successful financial performance with a 5% increase in profit after tax despite COVID-19 impact
- Diversification into digital technology contributes to a 94% revenue growth year-on-year
- Strategic business processes and regulatory compliance drive resilience and future growth prospects
Africa Prudential, a leading financial services provider, has recently announced a 5% increase in its half-year profit after tax. The company's Managing Director and CEO, Obong Idiong, revealed that the COVID-19 pandemic had a noticeable impact on their first-quarter numbers. However, Africa Prudential swiftly responded by implementing strategic measures to adapt and thrive within the current business environment.
During a recent interview on CNBC Africa, Idiong discussed the company's financial performance and highlighted key areas that drove growth despite the challenges posed by the pandemic. He pointed out that while there was a 7% decline in core earnings, primarily attributed to a 32% drop in fee income from a financial contract not being renewed by a client, revenue from core business operations saw a commendable 32% increase. The registrar business, a core component for Africa Prudential, experienced a significant boost with a 34% rise in customers and contracts.
Moreover, Africa Prudential's foray into digital technology proved successful, with a remarkable 94% increase in revenue year-on-year. This shift towards technology demonstrates the company's commitment to diversifying its revenue streams and embracing technological advancements to drive growth in the future.
Idiong also shed light on the strategic initiatives implemented amidst the pandemic to enhance business continuity. The company swiftly activated its business continuity plan, ensuring the safety and productivity of its workforce and clients. By pivoting towards a technology-driven model even before the pandemic, Africa Prudential was well-equipped to navigate the challenges posed by the lockdown. The company successfully conducted remote annual general meetings and continued to provide essential services to clients, showcasing resilience and adaptability.
Looking ahead, Idiong emphasized the importance of regulatory compliance and adapting to the evolving market landscape. Africa Prudential's strategic decision to explore new revenue streams was partly driven by regulatory requirements and market dynamics. Despite economic challenges and a projected 3.4% reduction in GDP, the company remains optimistic about its growth prospects. By optimizing revenue streams and enhancing customer experience, Africa Prudential aims to capitalize on market opportunities and deliver value to its clients.
In conclusion, Africa Prudential's proactive approach to business transformation and technological innovation has positioned the company for sustainable growth. By leveraging digital solutions, automating core operations, and prioritizing customer satisfaction, Africa Prudential is poised to navigate future uncertainties and emerge stronger in the financial services sector.
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