Atlas Mara H1 2016 Income Grew By 35%

Bank

Atlas Mara, the majority shareholder in Union Bank of Nigeria said its total income for the first half of 2016 grew by 35% to USD113.5 million from 98,8 million the company reported last year.

The major boost in its income is its non interest income that rose from USD49.4 million last year to USD68,3 million. This is a growth rate of 66% year on year.

However, credit impairment rose by 64% to USD9,1 million versus USD6,1 million the last year. Atlas Mara reported fall in its net profit to USD1,2 million as againts 2,1 million the company recorded last year.

Last week, analysts had predicted that the company’s stock will fall. The stock  did fell by 30% with a week when this result was expected.

As a pointer to its result, Atlas Mara said ‘Atlas Mara faced a particularly difficult operating environment in the first half of 2016. The full impact of the decline in African currencies, a worse macroeconomic backdrop and market liquidity tightness across a number of our countries of operation have all presented particular challenges to profitability’.

Commenting on these results, John Vitalo, Atlas Mara’s Chief Executive Officer, said: “The first half of 2016 presented a particularly difficult operating environment for Atlas Mara. The full impact of last year’s decline in African currencies, a more challenging macroeconomic backdrop and market liquidity constraints across a number of our countries of operation have all presented particular challenges to profitability“.

He said “Notwithstanding these challenges, we are pleased to report that our businesses have demonstrated an improving trend over the course of 2016 resulting in the second quarter better than the first, with June representing our best month of the first half and with this trend continuing into July.”

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