Royal Exchange Plc has recorded a 25 per cent growth in gross earnings during the half year ended June 2011.
?In a corporate action by the Insurance Company to the Nigeria’s Exchange and obtained by Leadership, the company’s unaudited result for the second quarter showed gross? earnings grew from N1.743 billion in 2010 to N2.324 billion, representing an increase of 25 per cent.
The company’s Profit After Tax (PAT) stood at N239.579million during the end of second quarter in contrast to N231.168 million recorded in comparable period of 2010, representing a marginal increase of 3.5 per cent.
Royal Exchange recently disclosed its preparedness to establish an asset and wealth management company in a bid to become a world class company in financial services.
The chairman of the company, Mr. Kenneth Ezenwani Odogwu, addressing shareholders at the 42nd Annual General Meeting of the company held in Lagos, said this became necessary to complete the restructuring of the group.
“The Board remains optimistic about the future, notwithstanding the very difficult and challenging operating environment in 2010. To complete the restructuring of the Royal
Exchange Group, we intend to establish an asset and wealth management company. The commencement of operations by the asset management company would complete our strategy of positioning the company as a one-stop shot for financial services,”Odogwu said.
He noted that the company recorded gross revenue of N3.27 billion, down from N3.64 billion in 2009, which translated into net income before overhead expenses of N1.85 billion in 2009.
Odogwu explained that the decline in gross revenue was due principally to decreases in contribution of interest, investment and other income other than premium.
He noted that the bearish trend in the capital market restricted the ability of the company to maximise investment returns from its quoted equity portfolio which, at N254 million was N86 million below 2009 levels.
“The overhead expenses in 2010 was N1.7 billion, a marginal decrease from N1.78 billion in 2009. Management expense, however, increased to N1.69 billion as against an expense of N1.41 billion in 2009, an increase of 20 per cent,? profit before tax and exceptional items of N123.2 million was recorded? in contrast to N337 million in 2009,” the chairman said.
Odogwu noted that the performance was largely attributable to the expansion of operations in healthcare, microfinance and life insurance as well as the renovation and relocation of some existing branches and establishment of new ones.