ROYAL EXCHANGE : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

Consolidated Statements of Financial Position

-

(0)

0

0

At 30 September 2023

Unaudited

Audited

Unaudited

Audited

Group

Group

Company

Company

In thousands of Naira

Note

30-Sep-23

31-Dec-22

30-Sep-23

31-Dec-22

ASSETS

709,172

608,573

157,034

127,890

Cash and cash equivalents

5

Loans and advances to customers

6

905,588

1,140,139

-

-

Advances under finance lease

86,706

68,431

-

-

Investment securities:

25,051

30,820

Measured at Fair Value Through Profit or Loss (FVPL)

8(a)

4,833

17,440

Measured at Fair Value Through Profit or Loss (FVOCI)

8(b)

-

-

-

-

Amortized Cost

8(c)

-

-

-

-

Investment in subsidiaries

9

-

-

509,389

509,389

Assets classified as held for sale

9(b)

-

-

-

-

Trade receivables

10

-

-

-

-

Reinsurance assets

11

-

-

-

-

Deferred acqusition cost

12

-

-

-

-

Other receivables and prepayments

13

178,750

163,342

141,182

105,361

Investment in associates

14

5,405,711

5,080,554

5,405,711

5,080,554

Investment properties

15

-

-

-

-

Property and equipment

17

15,543

17,440

2,479

1,493

Right of Use Asset

17(b)

-

942

0

942

Intangible assets

18

-

-

-

-

Employees retirement benefit asset (Net)

19

-

-

-

-

Statutory deposits

20

-

-

-

-

Deferred tax assets

21

-

-

-

-

Investment Properties classified as held for sale

16

-

-

-

-

Deposit for shares

14(c )

39,000

39,000

39,000

39,000

Total assets

7,365,521

7,149,241

6,259,629

5,882,071

LIABILITIES

1,989,952

544,777

734,949

544,777

Borrowings

29

Deferred Income

22

-

-

-

-

Trade payables

23

-

-

-

-

Other liabilities

24

2,750,058

3,037,411

2,941,617

2,996,833

Depositors' funds

25

-

1,226,428

-

-

Insurance contract Liabilities

26

-

-

-

-

Investment contract Liabilities

27

-

-

-

-

Finance Lease Obligation

29

168

168

14,827

13,699

Current income tax liabilities

28(b)

253,913

234,702

250,349

232,594

Employees benefit liability

19(a)

4,515

974

974

974

Deferred tax liabilities

21

-

-

-

-

Deposit for Shares

1,985

-

-

-

Total liabilities

5,000,591

5,044,460

3,942,716

3,788,877

EQUITY

2,572,685

2,572,685

2,572,685

2,572,685

Share capital

30

Share premium

31

2,690,936

2,690,936

2,690,936

2,690,936

Contingency reserve

32

-

-

-

-

Treasury shares

33

-

-

-

-

Retained earnings

34

(3,290,545)

(3,612,013)

(2,901,187)

(3,124,904)

Other component of equity

35( c )

391,857

453,173

(45,524)

(45,524)

Capital and reserves attributable to owners

2,364,933

2,104,781

2,316,912

2,093,193

Non-controlling interests

35( d )

-

-

-

-

Total Equity

2,364,933

2,104,781

2,316,912

2,093,193

Total equity & liabilities

7,365,521

7,149,241

6,259,629

5,882,070

Kenneth Odogwu

Anthony Ogunade

Chairman

for: Ag. Chief Financial Officer

(FRC/2013/NBA/00000004195)

(FRC/2023/PRO/ICAN/001/580489)

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For period ended 30 September 2023

Audited

Audited

Group

Group

Company

Company

In thousands of Naira

Note

30-Sep-23

31-Dec-22

30-Sep-23

31-Dec-22

Gross premium written:

36(a)

-

-

-

-

Unearned premium

-

-

-

-

Gross premium income

-

-

-

-

Reinsurance expenses

36(b)

-

-

-

-

Net premium income

-

-

-

-

Fees and commission income

37

-

-

-

-

Net underwriting income

-

-

-

-

Insurance claims and benefits incurred

38

-

-

-

-

Insurance claims and benefits incurred - recoverable from reinsurers

39

-

-

-

-

Net claims expenses

-

-

-

-

Changes in insurance contract liabilities

-

-

-

-

Underwriting expenses

40

-

-

-

-

Total underwriting expenses

-

-

-

-

Underwriting profit

-

-

-

-

Interest Income

41

217,657

262,173

3,959

3,377

Interest Expense

41

(137,618)

(229,222)

(19,410)

(53,410)

Net Interest Income

80,039

32,951

(15,451)

(50,033)

Investment and other income

42

136,460

67,015

97,872

3,668

Share of profit/loss on investment in associate

14

268,344

240,327

268,344

240,327

Net fair value gain or loss on financial assets

43

(7,778)

-

(15,857)

-

Charge/write-back of impairment allowance

44

61

(90,877)

61

(117,708)

ECL Impairment Allowance

44(a)

-

-

-

-

Operating income (Revenue)

-

-

-

-

Other operating income

45

26,351

196

26,351

196

Foreign exchange gains/(losses)

46

-

-

-

-

Net Income

503,477

249,612

361,321

76,450

Management expenses

47

(235,785)

(397,945)

(119,849)

(239,576)

Total expenses

(235,785)

(397,945)

(119,849)

(239,576)

Profit/(Loss) before tax

267,692

(148,333)

241,471

(163,126)

Minimum tax

28(a)

(17,757)

-

(17,757)

-

Income taxes

28(a)

-

(2,141)

-

(34)

(Loss)/Profit after taxation from continuing operations

249,934

(150,474)

223,714

(163,160)

Discontinued operations:

-

(392,664)

-

-

Loss for the year from discontinued operations

49

Gain/(Loss) on disposal of Subsidiary

15(c)

-

254,666

-

352,900

(Loss)/Profit after taxation from discontinued operations

-

(137,998)

-

352,900

(Loss)/Profit after taxation for the year

249,934

(288,472)

223,714

189,740

Profit/(Loss) is attributable to:

249,934

(289,205)

223,714

189,740

Owners of Royal Exchange Plc

Non-controlling interest

-

733

-

-

249,934

(288,472)

223,714

189,740

Other comprehensive income, net of tax

Items that will never be reclassified subsequently to profit or loss:

-

-

-

-

Net actuarial gains/(losses) of defined benefit obligations

Share of returns in associates

-

-

-

-

Items that are or may be reclassified subsequently to profit or loss:

-

-

-

-

Changes in fair value of FVOCI investments

Total other comprehensive income, net of tax

-

-

-

-

Total comprehensive income for the period

249,934

(288,472)

223,714

189,740

Total comprehensive income attributable to:

249,934

(288,472)

223,714

189,740

Owners of Royal Exchange Plc

Non-controlling interest

-

-

-

-

249,934

(288,472)

223,714

189,740

Total comprehensive income for the period attributable to owners of Royal

Exchange Plc arising from:

Continued operations

249,934

(288,472)

223,714

189,740

Loss for the year from Discontinued operations

-

-

-

-

Gains/(Loss) on disposal of Subsidiary

-

-

249,934

(288,472)

223,714

189,740

Profit/(Loss) per share - Basic and diluted (kobo)

5

(6)

4

4

Group

In thousands of Naira

Other component of equity

Actuarial

Fair

Other

Equity attributable

Non-

Share

Share

Contingency Retained

Treasury

Regulatory

Compone

Gain/Loss

value

Total

to Parent's

controlling

Total Equity

Capital

Premium

Reserve

Earnings

Shares

risk reserve

nt of

Reserve

reserve

Shareholders

Interests

Equity

At 1 January 2022

2,572,685

2,690,936

417,436

(4,258,421)

-

472,006

49,058

(51,470)

-

469,594

1,892,231

117,248

2,015,440

-

Fair value reserve

-

-

-

-

-

-

-

-

-

-

-

-

Changes in fair value of FVOCI investments

-

-

-

-

-

-

-

-

-

-

-

Share of returns in associates

-

-

-

-

-

-

-

-

-

-

-

-

Net actuarial gains/losses

-

-

-

-

-

-

-

-

-

-

-

-

Loss/(profit) for the year

-

-

-

(288,472)

-

-

-

-

-

(288,472)

(30,192)

(318,664)

-

Total comprehensive income

2,572,685

2,690,936

417,436

(4,546,893)

-

472,006

49,058

(51,470)

469,594

1,603,759

87,056

1,696,776

Share of newly recognized Non-controlling Interest (NCI)

-

-

-

-

-

-

-

-

-

-

(87,056)

(87,056)

Disposal on Non-controlling Interest (NCI)

-

-

Contigency reserve

-

-

-

-

-

-

-

-

-

-

-

-

Share of returns in associates

-

-

-

-

-

-

-

-

-

-

-

-

Retained earnings

-

-

-

-

-

-

-

-

-

-

-

-

Transfer to contingency reserve

-

-

-

-

-

-

-

-

-

-

-

-

Transfer to regulatory reserve

-

-

-

-

-

32,796

14,624

-

47,420

47,420

-

47,420

Transactions with owners in their capacity as owners:

-

-

-

-

-

-

-

-

-

-

-

-

-

Other reserve

Adjustment for loss of control

(417,436)

934,880

-

(63,844)

-

(63,844)

453,600

-

453,600

At 31st December 2022

2,572,685

2,690,936

-

(3,612,013)

-

504,801

(162)

(51,470)

453,171

2,104,779

-

2,110,739