Grows PBT by 128.7 per cent
eTranzact International Plc, Nigeria’s leading electronic payment system company, posted a profit before tax (PBT) of N536.4 million for the 2021 financial year.
The figure is 128.66 per cent improvement from the N1.87 billion loss recorded in the comparative period, with the Managing Director/Chief Executive Officer of the company, Olaniyi Toluwalope, describing the performance as the beginning of a glorious future.
The improved performance comes as the company takes the lead in the expected transition to holding structure in the electronic payment system. The Central Bank of Nigeria (CBN) had issued a new guideline preventing a company from operating switching, processing and mobile money as a single entity.
To provide the services, a company would need to adopt a holding model. eTranzact said the process leading to its unbundling will be completed latest Q1 2023.
The payment processing company also achieved a 124.13 per cent growth in its profit before tax (PAT). The figure rose from a negative region of N1.89 billion to N455.75 million.
At the firm’s yearly general meeting held in Lagos, its Chairman, Wole Abegunde, said the 18-year-old financial institution has commenced a journey to sustainable profitability.
He also disclosed that eTranzact has developed a roadmap for restructuring its operations in line with the new regulatory framework for the payment system industry.
The company, at the previous AGM, had disclosed its intention to embrace a holding structure to retain its leadership role across critical areas of the ecosystem. Abegunde said the process of transitioning to a holding company was on course.
Also speaking, Toluwalope said the transition process would be completed before the end of the year or the first quarter of 2023. He added that “the scheme of arrangement” would be submitted to the regulator in the coming weeks.
On the completion of the process, eTranzact will operate its switching and mobile money as spate entities under a holding company.
Toluwalope said the company has embarked on a range of initiatives to consolidate its hold on the market and support electronic payment growth.
“The company commenced the implementation of its expanded Tech Stack initiative in 2021, which will invariably boost the company’s capacity, speed and security in processing transactions. Significant progress has been made in the implementation process and the company will ensure that the implementation is completed within the project framework,” he told the shareholders.
The chief executive said eTranzact is committed to the country’s financial inclusion, which is evident in the increase of its agents across the country.