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+---- Thread: AMCON records N342bn revenue, recovers N740bn loans (/showthread.php?tid=7790)
AMCON records N342bn revenue, recovers N740bn loans - Edoman - 06-02-2018
AMCON records N342bn revenue, recovers N740bn loans
THE Asset Management Corporation of Nigeria (AMCON) yesterday released its financial statement for the year ended 2017, which shows revenue rising by 23 percent to N342 billion during the year.
Meanwhile corporation has recovered N740 billion loans since its inception in 2011. Analysis of the financial statement of the corporation showed that gross earnings rose by 22.6 percent to N341.83 billion in 2017 from N278.78 billion in 2016. AMCON The corporation also recorded 90 percent reduction in its loss for the year which dropped to N16.41 billion in 2017 from N164.94 billion in 2016, while profit margin improved from minus 30 percent to minus 5.0 percent. Speaking at a media parley in Lagos yesterday, Managing Director/Chief Executive Officer, AMCON, Ahmed Kuru, attributed the improved performance of the corporation to the improvement in the nation’s economy. He said: “The Corporation has done very well in terms of what its mandate was, which is to bring financial stability.
We have started seeing a situation where our excess loss position is gradually reducing. So far, we have recovered an average of about 37 per cent of what we were supposed to recover. And in the best climes, the best that asset management companies have done in terms of recovery is about 50 per cent. So, if you gauge what we have done against what is obtainable internationally, you will see we have done better. “For AMCON to be performing, the economy must also be growing. If the economy is doing very well, some of those businesses that are defaulting will also be doing very well. If the economy is not doing very well, then those underlying businesses would also not be doing very well.’ N740bn loan recovered Speaking on the loan recovery efforts of the Corporation, Kuru said: “Up to the financial year of 2017, we have recovered a total of N740 billion. Of course we have a lot of substantial assets that we are holding in terms of real estate and some other forms of assets. But most fundamentally is that quite a lot of traction has been achieved over the period. “We have disposed some financial assets, which also included three banks. We are in the process of divesting our interest in Peugeot Automobile Nigeria (PAN).
This is in addition to quite a number of small businesses that we had intervened and disposed. Our intervention in the agriculture sector is in the region of about N1.7 trillion. “The structure of AMCON at conception was that, there was the assumption that those loans that were purchased would be restructured and liquidity provided so that new life would be given to some of those businesses.
Read more at: https://www.vanguardngr.com/2018/06/amcon-records-n342bn-revenue-recovers-n740bn-loans/