By Rosemary Onuoha

ROYAL Exchange Plc is introducing additional products into its e-payment platform for the general and life insurance companies.

Chairman of the company, Mr. Kenneth Odogwu who stated this at the company’s annual general meeting in Lagos last week, noted that the company is also exploring the possibility of incorporating some products of other companies within the group into the platform.

According to the Chairman, the platform will help the group expand its retail business and enable it exploit the opportunities in the rural areas and other locations where branch relocation is not economic.

Meanwhile, the Chairman told shareholders that the company achieved gross revenue of N3.27billion, down from N3.64 in 2009, which translated into net income before overhead expenses ofN1.85billion, as against N2.12billion in 2009.

The decline in gross revenue was due to principally to decreases in contribution of interest, investment and other incomes other than premium, Odogwu noted.

In his words “The slow pace of recovery of the capital market restricted the ability of your company to maximize investment returns from our quoted equity portfolio which, at N254million was N86million below 2009 levels.

The low interest regime that reigned all through 2010, further constrained our receipts from interest and discount income which, at N120million was N48million below the 2009 levels as well.”

Meanwhile, overhead expense in 2010, according to Odogwu, was N1.7billion, down marginally from N1.78billion in 2009. Management expenses, however, increased to N1.69billion as against an expense of N1.41billion in 2009, an increase of 20 per cent.

This is largely attributable to the expansion of operations in healthcare, microfinance and life insurance as well as the innovation and relocation of some existing branches and the establishment of new ones. A profit before tax and exceptional items of N123.2million was achieved as against N337million in 2009.