Africa Prudential’s pre-tax profit hits N4.07 billion in 9M as interest income jumps 46%

Africa Prudential Plc has reported a 34.79% year-on-year increase in profit before tax to N4.07 billion for the nine months ended September 30, 2026, compared with N3.02 billion in the corresponding period of 2025.

According to the unaudited results, profit after tax increased by 30.83% to N2.69 billion from N2.05 billion in 9M 2025, while earnings per share rose to 67 kobo from 51 kobo.

The company’s nine-month earnings performance was driven primarily by stronger interest income from its investment portfolio, which helped offset rising personnel expenses, other operating costs and credit impairment charges.

Key Highlights

• Revenue from contracts with customers: N1.07 billion (Up 11.32% YoY from N965.34 million).
• Gross profit: N941.16 million (Up 8.38% YoY from N868.35 million).
• Interest income: N5.85 billion (Up 46.05% YoY from N4.00 billion).
• Net operating income: N6.91 billion (Up 35.23% YoY from N5.11 billion).
• Total assets: N44.84 billion (Up 7.00% from N41.91 billion in December 2025).
• Customer deposits: N27.30 billion (Up 3.25% from N26.44 billion).
• Cash and cash equivalents: N479.85 million (Down 1.76% from N488.45 million).
• Total equity: N13.75 billion (Up 8.00% from N12.73 billion).

Driving the numbers

Africa Prudential’s nine-month earnings performance was driven largely by increased interest income from its investment portfolio, which remained the company’s dominant source of operating income.

• Interest income rose by 46.05% to N5.85 billion from N4.00 billion in 9M 2025, accounting for 84.58% of net operating income.

A major contributor was interest earned on short-term deposits, which increased to N5.69 billion from N3.85 billion in the corresponding period of 2025.

• Interest income from short-term deposits increased to N5.69 billion from N3.85 billion.

The growth in income from short-term deposits was particularly significant, accounting for the overwhelming majority of the company’s interest earnings during the period.

Beyond investment income, revenue from contracts with customers increased by 11.32% to N1.07 billion from N965.34 million.

The company’s service revenue came from registrar maintenance, corporate actions, and digital technology services.

• However, revenue from these activities remained substantially below interest income, highlighting the importance of investment earnings to the company’s overall profitability.

Gross profit increased by 8.38% to N941.16 million from N868.35 million, while cost of sales rose by 37.59% to N133.45 million from N96.99 million.

• Consequently, gross profit grew more slowly than revenue from contracts with customers, reflecting higher direct costs associated with service delivery.

Meanwhile, other income declined by 48.04% to N124.67 million from N239.94 million.

Despite the decline in other income, stronger interest income helped lift net operating income by 35.23% to N6.91 billion.

On the cost side, personnel expenses increased by 43.17% to N1.39 billion from N969.91 million, while other operating expenses rose by 38.47% to N1.33 billion from N962.41 million.

Despite the higher cost base, stronger interest income supported an increase in profit before tax to N4.07 billion.

However, income tax expenses increased by 43.22% to N1.38 billion from N966.94 million, moderating bottom-line growth. Consequently, profit after tax increased by 30.83% to N2.69 billion.

Balance sheet

On the balance sheet, total assets increased by N2.94 billion to N44.84 billion from N41.91 billion in December 2025.

The expansion was driven primarily by growth in equity instruments measured at fair value through other comprehensive income and debt instruments held at amortized cost.

• Equity investments increased by 35.33% to N8.53 billion from N6.30 billion.
• Debt investments increased by 4.52% to N33.59 billion from N32.14 billion.
• Cash and cash equivalents declined to N479.85 million from N488.45 million.

Debt instruments remained the company’s largest asset category, accounting for 74.92% of total assets at the end of September 2026.

• Customer deposits increased by 3.25% to N27.30 billion from N26.44 billion.

Meanwhile, shareholders’ equity increased by 8.00% to N13.75 billion from N12.73 billion, supported by higher retained earnings and fair value reserves.

The company also disclosed that it had achieved compliance with the revised minimum capital requirement of N2.50 billion ahead of the June 30, 2027, regulatory deadline.

Market performance

Africa Prudential Plc shares have declined by 31.08% year-to-date, falling from N14.80 at the beginning of 2026 to N10.20 as of Friday, October 23, 2026.

During its last trading session on October 23, the stock declined by 2.39% from its previous closing price of N10.45 to N10.20.