Royal Exchange Plc has published its third quarter (Q3) financial statement for the period ended September 30, 2025, reporting a pretax profit of N1.49 billion.
This indicates a 90% increase from N781.16 million in the corresponding period of 2024, driven by a surge in earned income, which rose 86% to N1.86 billion compared to N996.87 million in 2024.
The company’s unaudited financial statement filed with the Nigerian Exchange (NGX) on Tuesday, October 14, 2025, also showed a sharp increase in interest income from N82.288 million in 2024 to N287.028 million in 2025.
The group reported no tax liability for the period. Consequently, the net profit stood at N1.49 billion, also representing a 90% increase year-on-year.
Despite this, earnings per share (EPS) declined by 64% to N0.36.
Balance sheet
On the balance sheet, total assets rose by 9.5% to N11.13 billion, up from N10.16 billion in the corresponding period of 2024, supported by.
- Investments in associates rose to N8.2 billion compared to N5.96 billion, accounting for 75% of its total assets.
- Loans and advances to customers more than doubled from N420 million to N1.08 billion.
- Cash and cash equivalents increased to N1.173 billion compared to the N937 million recorded in the corresponding period last year.
Shareholders’ funds rose by 23% to N7.62 billion, driven largely by share capital and share premium.
- The recovery in retained earnings also contributed significantly, swinging from a deficit of N1.69 billion in 2024 to a positive N429.5 million in 2025.
Market performance
Royal Exchange began the year with a share price of N1.00 and was priced at N2.33 as of the close of trading on October 15, 2025, reflecting a YtD gain of 133% ranking it 35th on the NGX.
In terms of trading activity, Royal Exchange ranks as the 20th most traded stock on the Nigerian Exchange over the past three months (July 17 – October 15, 2025).
Within this period, ROYALEX recorded a total trading volume of 990 million shares, exchanged in 9,149 deals, with a market value of N2.08 billion.
Insight
Royal Exchange’s financial results reflect a notable improvement in profitability and balance sheet strength, supported by higher earnings and the recovery in retained earnings.
However, the company still recorded a negative operating cash flow of N740.9 million, though this represents an improvement from the N1.16 billion outflow in the previous period.
This indicates that while profitability is improving, cash generation from core operations remains a challenge, a key area that will need continued management focus to sustain growth and liquidity stability.
