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