5th Sep 2018 10:58
LONDON (Alliance News) - Atlas Mara Ltd on Wednesday reported on Wednesday a more than doubling in interim profit increase despite a decrease in income and net interest income.
In the six months ended June, the company, which invests in African banks, posted an pretax profit of USD36.1 million, up from USD16.8 million a year before.
Total income decreased 8.1% to USD112.3 million from USD122.2 million, with net interest income decreasing 13% to USD68.3 million from USD78.6 million.
Atlas Mara said its profit increase was due to the USD19.2 million gain on its acquisition of additional shares in Union Bank of Nigeria PLC - taking its holding to about 49% - and the improved underlying performance of UBN.
The net income decrease was due to "muted" low loan book growth" and "some margin pressure" - as Atlas Mara believe the "credit appetite in many markets remains subdued".
Loans and advances within the group decreased 1.2% to USD1.28 billion - reflecting the impact of the IFRS 9 implementation and the "muted" loan book growth.
Non-performing loans decreased to USD166 million from USD169 million, but increased the share of Atlas Mara's overall loan book to 12.9% due to the reduction in total loan balance.
Customer deposits were up 3.9% in the first half to USD1.91 billion from USD1.89 billion.
Atlas Mara said it is focused on cost management despite a 3.3% rise in costs during the year to USD108.5 million from USD104.1 million.
Chairman Bob Diamond said: "We are pleased to present the company's first half results, which included a positive net profit, albeit with some challenges. We maintained a largely stable balance sheet while weathering substantial macroeconomic challenges in some key markets. At the same time, we saw progress in the countries and business lines, as we continue to establish our franchise and pursue our long-term goal of being a top tier player across our footprint.
"Although we expect the balance of 2018 to bring continued challenges in our growth and rate environments, the board and I remain cautiously optimistic about the future. We are in attractive markets for which we expect the long-term trends to remain favourable. As always, we are grateful to all of our shareholders for your support."
Added John Staley, who recently joined Atlas Mara as chief executive officer: "Since joining the group in May, I have visited with all of our majority owned banks and with the support units, thereby getting to know my colleagues in these businesses and meeting with regulators, customers and other stakeholders. I have been developing an understanding of the issues and the innate potential for our businesses. I have also been reviewing the capital and funding structure of our businesses."
Shares in Atlas Mara were up 2.1% Wednesday at USD2.40 each.
Related Shares:
ATMA.L