The Asset Management Corporation of Nigeria (AMCON) has reported N16.4 billion loss in the 2017 financial year, promising to return to profitability this year.
Even then, the corporation’s loss last year showed remarkable improvements in its financials, especially when analysed within the context of the N164.9 billion loss recorded in 2016.
The Executive Director, AMCON, Aminu Ismail, projected that if the economy continued with its positive outlook, the corporation would to return to profit this year.
A further analysis of the corporation’s performance last year showed that its gross earnings increased by 23 percent to N341.8 billion.
Ismail told journalists in Lagos that a 21 percent increase in interest income to N42.6 billion as well as the N41 billion sale of Keystone Bank helped boost performance even as operating expenses rose by 16 percent.
According to the management, AMCON’s costs were “driven” by an increase in the price of aviation fuel and overhead expenses for two airlines it has taken over, Arik Air and Aero Contractors.
To reduce its losses, it plans to sell Aero Contractors this year and has appointed advisers for its divestment in Arik Airlines.
The corporation acquired 12,537 non-performing loans worth N1.7 trillion from 22 financial institutions, following the 2009 banking crisis.