The Asset management Corporation of Nigeria (AMCON), made a total recovery of N134 billion in 2016, data from the financial statements show.
A breakdown of the recoveries shows that cash collection contributed N86.9 billion, Asset forfeiture N30.46 billion, sale of properties N7.9 billion and dividends sold N8.7 billion.
Further details show that a total of N913 billion has been transferred to AMCON reserves from payments made by banks to the resolution sinking fund.
Ahmed Kuru, AMCON’s managing director and chief executive officer, said that AMCON was focused on pulling the levers it controls such as efficiency, while the economy gradually improves in 2017.
“2016 has been generally a very tough year for Businesses and for us it was no exception. Still there was some positive traction made,” Kuru said in a meeting in Lagos which BusinessDay attended.
AMCONs 2016 financial performance showed that the firm adopted more efficient debt recovery measures as non-performing loan (NPL) ratio improved by 2 percentage points to 63 per cent, from 65 per cent in 2015.
The company also efficiently ran its operations, having adopted several cost-saving measures.
Reported total operating expenses improved 23.5 per cent to N64.7 billion from N67.7 billion the previous year as the bad loan manager wiped N4.3 billion off its personnel costs.
Similarly, liquidity ratio, defined as the proportion of AMCON’s liquid assets to its total assets, rose by 1.5 percentage points, from 7 per cent in 2017 to 8.5 per cent in 2016. AMCONs stand-alone company loss moderated by 19 percent to N251 billion in 2016 from N310 billion in 2015.
Nigeria’s shrinking economy shrivelled the company’s fortunes as fees and commission plummeted compared to the prior year. Fees and commission comprised 0.58 per cent of total earnings in 2015; it shrunk to 0.4 per cent in 2016.
The company’s earnings worsened in 2016 as lower revenue and loss from Keystone bank, a major subsidiary, negatively affected net losses.
Keystone bank, one of the banks AMCON took over in a bid to resolve troubled loans in the Nigerian banking system, had posted a loss close to N83 billion during the year prior to its sale in 2017. AMCON expects that the positive impact of the sale will be seen in its 2017 first quarter results.