Africa Prudential reports gains from diversification

Africa Prudential recorded significant success in its diversification into digital technology solutions provider in 2021 while reinventing its traditional registrar business.

These were among the key messages delivered by the company’s leadership at its ninth yearly general meeting held in Abuja on the 23rd of March, 2022.

Despite significant macroeconomic headwinds, including double-digit inflation and a weaker naira, the company recorded 71 per cent growth in registrar maintenance fees in 2021 while adding 19 new clients in the associated business line.

Over the same period, Africa Prudential hit significant milestones in its digital technology business, culminating in a 58 per cent rise in revenues in the business line.

Overall, gross revenues increased by 0.4 per cent to N3.5 billion despite the 12 per cent decline in interest income as the non-interest income lines strengthened. Profit before tax (PBT) was up 1.3 per cent to N2 billion while the firm maintained its dividend payout at 50 kobo per share for the year 2021, the same payment it paid in 2020.

The Chairman of the Board of Directors, Eniola Fadayomi, said: “Amid a slow economic recovery but still challenging business environment, the 2021 performance reflects the impact of deliberate efforts to diversify the business and to deploy business solutions to strengthen our business and that of our clients for superior value creation. We look forward to recording greater success in this regard in the coming years”.

During the 2021 fiscal year, Africa Prudential made further investments and partnerships to broaden and deepen its service offering.

It launched its Biometric Identification Management Solution as its latest offering, enabling a wide range of companies to capture and authenticate the biometric information of their customers.

The company also launched the Reddeals platform, which aggregates discounted deals on a web-based platform. Commenting on the 2021 performance, CEO of Africa Prudential, Obong Idiong, said: “The 2021 performance provides further evidence of the success of our evolution as a business solutions provider even as we strengthen our traditional Registrar Business for superior value creation to our customers. Revenue from digital technology business has risen from one percent of total revenues in 2019 to 18 percent in 2021, amid an expanding clientele across the public and private sector space.

“Meanwhile, we are using technology to redefine the experience of customers in our Registrar Business and this underpinned new customer acquisition in the past year. We continue to challenge business leaders to imagine a future where they can recalibrate their business for growth, efficiency and the rapidly evolving competitive landscape and look forward to helping them build the tools that they require to get there.”