The board of directors of Abbey Mortgage Bank Plc received approval from the company’s shareholders to reduce the issued share capital by N3.541 billion.
The Times reported that the endorsement came as part of a special resolution during the company’s Lagos-based extraordinary general meeting.
According to the statement, “Subject to the approval of the court, the issued share capital of the company be reduced by N3.540,633,102, which has been lost or otherwise unrepresented by available assets, and that the credit resulting from the reduction be used to eliminate the retained loss in the company’s audited financial statements as at December 31, 2022.”
At the EGM, the company’s chairman, Mazi Emmanuel Kanu, addressed the shareholders and stated that an analysis of Abbey Mortgage Plc’s financial statement for the year ending December 31, 2022, revealed a deficit of N3.541 billion as accumulated permanent losses from prior transactions.
According to Kanu, the proposed balance sheet restructuring would reduce the credit balance in the business’s share premium account but have no impact on the issued share capital or regulatory capital of the company.
He pointed out that the shareholder’s finances would remain unaffected and added that it would not have an effect on the company’s creditors instead opening the door for shareholders to collect dividends from the company’s future profits.
Kanu observed that in accordance with the mechanics and structure of sections 131 and 132 of the Companies and Allied Matters Act 2020, the company’s board of directors is proposing a reduction of N3,540,633,102 from the company’s share premium capital account of N5,117,137,249.90.
“The reserve arising from the reduction would be deployed to eliminate the negative retained earnings as of the 2022 financial year-end,” the speaker stated.
Accounting for the full year ending December 31, 2022, Abbey Mortgage Bank Plc’s audited financial reports revealed excellent performance across key indices.
According to the Bank’s full-year financial reports, which were filed with Nigerian Exchange Limited, interest income increased dramatically to N2.03 billion from N1.63 billion in the fiscal year of 2021, or by 24.53%.
This is due to rising inflation, which the economy is still having trouble with.
According to the most recent report released by the Nigerian Bureau of Statistics on Friday, the headline inflation rate increased to 22.04% in March, up 0.13% from the rate seen in February (21.91%).
Research has revealed that among other things, the increase was supported by the rise in the prices of food, housing, fuel, and petrol. The graph demonstrates the inflation rate’s steady rise over the previous two years.
The headline inflation rate was 6.13% points higher year over year than the 15.92% rate registered in March 2022.
According to financial information, the bank’s total operating income increased by 21.89% from N233.60 million in 2021 to N284.75 million in 2022.
Abbey generated a profit before tax growth of 25.14% to conclude the year under review at N827.26 million, up from N661.19 million recorded in 2021, despite the extremely difficult global economic and business environment.
The profit after tax grew by 23.14% to N766.16 million in 2022, compared to N622.19 million recorded the year before.