Enterprise Group makes GH¢223m profit after tax in 2022
Enterprise Group has announced a profit of GH¢223 million in 2022, up from GH¢123 million in 2021.
The Group recorded a 37.4 per cent jump in net income last year at GH¢1.602 billion compared with the previous year’s figure of GH¢1.166.3 billion.
The growth was on the back of a 21 per cent increase in net-earned premium, positive currency impact on investment properties valuation and revenue from the group’s pensions, funeral and properties businesses.
The group’s profit after tax rose to GH¢223 million from GH¢122.9 million in 2021 because of the fair value gains on investment properties resulting from currency movement.
However, the profit growth was heavily impacted by a GH¢329 million impairment due to the Domestic Debt Exchange Programme (DDEP).
Board Chairman of the Group, Keli Gadzekpo, said the Group was committed to the long-term value creation for the benefit of all stakeholders through staying focused on plans with the support of shareholders in Black Star Holdings Limited.
He said while the DDEP was painful short-term for both some policy holders and shareholders, the main benefit for all long-term stakeholders would be greater financial stability with lower inflation and interest rates.
Mr Gadzekpo announced a dividend of GH¢0.0744 per share for 2022, the same as that paid in the previous year.
He explained that the general cost increases experienced in the year also had impact on the group’s expenses negatively.
“Our operating companies -Enterprise Life, Enterprise Insurance, Enterprise Trustees, Enterprise Funeral Services, Acacia- have all retained their market positions in their respective industries notwithstanding the difficult operating conditions,” he said.
He said net income without fair value gains grew by 22.6 per cent for the period under review.
“Total expenses went up by 30 per cent over the prior year, driven largely by a 32.94 per cent in claims and benefits and impairment of government bonds on shareholder investment of GH¢64.8 million,” he said.
He said investment income grew by 13.8 per cent from GH¢249.17million to GH¢283.57 million despite the negative returns on the equity market.
He said that based on the financial metrics, the group was on track to achieve its 2020-2024 financial ambitions contained in the company’s five-year strategy of delivering GH¢2 billion net income by 2024.
Mr Gadzekpo said the group’s outlook for the future remains uncertain and potentially unstable, adding “We believe that in turbulent times like this, our businesses are being called upon to work even harder to deliver peace of mind to our cherished customers and value to our shareholders.”
Source: GNA