Africa Prudential Posts N2.41bn H1 Pre-tax Profit on Higher Interest Income

Africa Prudential Plc posted a pre-tax profit of N2.41 billion for the first half of 2026, a 21.68 per cent increase from N1.98 billion recorded in the corresponding period of 2025, driven by stronger interest income and higher revenue from its registrar and technology services.

The company’s unaudited financial results showed profit after tax rising 18.10 per cent to N1.59 billion from N1.35 billion a year earlier, reflecting continued growth in operating income despite higher costs.

Second-quarter performance remained robust, with pre-tax profit reaching N1.63 billion, up 27.67 per cent from N1.27 billion in the corresponding quarter of 2025. Profit after tax advanced 23.92 per cent to N1.07 billion, underscoring sustained earnings momentum.

Earnings per share for the six months stood at 40 kobo, while second-quarter earnings per share improved to 27 kobo from 22 kobo a year earlier.

The company recorded a 41.00 per cent increase in revenue from contracts with customers to N742.32 million, supported by higher corporate action fees, registrar maintenance income and continued growth in its digital technology business. Corporate action services remained the largest contributor to fee income during the period.

Interest income, the company’s largest source of operating revenue, climbed 30.59 per cent to N3.46 billion from N2.65 billion in the corresponding period of 2025. The increase was driven primarily by higher returns on short-term deposits, reflecting the prevailing high interest rate environment.

Net operating income grew by 26.95 per cent to N4.21 billion. However, higher operating expenses moderated overall profitability, with personnel costs rising to N968.45 million from N645.45 million, while other operating expenses increased to N753.40 million from N638.35 million.

On the balance sheet, total assets expanded by 11.01 per cent to N46.52 billion, supported largely by higher investments in debt instruments measured at amortised cost. Cash and cash equivalents more than doubled to N1.11 billion from N488.45 million at the end of December 2025, strengthening the company’s liquidity position.

Total liabilities increased by 16.54 per cent to N34.00 billion, driven by growth in customers’ deposits and higher creditors and accruals, while shareholders’ equity declined marginally by 1.65 per cent to N12.52 billion.

Africa Prudential’s shares closed at N13.20 on July 17, up 4.3 per cent from the previous trading session. The stock has gained 13.3 per cent so far in July, although it remains down 10.8 per cent since the start of the year. At the closing price, the company had a market capitalisation of N52.8 billion, placing it among the Nigerian Exchange’s mid-cap stocks.