Africa Prudential Plc – 9M 2025 Unaudited Results Review

Africa Prudential Plc delivered another strong financial performance for the nine months ended 30 September 2025, with profit after tax surging 53.5% YoY to ₦2.05 billion (9M 2024: ₦1.34 billion). The result was underpinned by higher investment income and growth in customer-contract revenue, reflecting the company’s continued diversification into digital and technology-driven services.

Key Financial Highlights (₦ ‘000)

Metric | 9M 2025 | 9M 2024 | YoY Change

Revenue from contracts with customers | 965,339 | 758,525 | +27.3%

Interest income | 4,002,822 | 2,511,738 | +59.3%

Other income | 239,935 | 225,231 | +6.5%

Net Operating Income | 5,111,109 | 3,413,078 | +49.8%

Profit Before Tax | 3,021,683 | 1,968,870 | +53.5%

Profit After Tax | 2,054,744 | 1,338,832 | +53.5%

Total Comprehensive Income | 2,422,137 | 1,338,807 | +80.9%

EPS (Kobo) | 51 | 67*

Restated lower due to share-capital increase

* EPS decline reflects the doubling of share capital to ₦2 billion, which increased shares outstanding—not weaker profitability.

Revenue Analysis

• Contract revenue rose 27% YoY, driven by stronger registrar services, digital-product adoption, and increased corporate actions within the capital market.
• Interest income jumped 59%, benefiting from higher yields on treasury instruments and the expansion of the debt-instrument portfolio, which grew 24% to ₦32.74 billion.
• The mix of operating income remains heavily skewed toward financial-asset returns (≈78%), highlighting Africa Prudential’s expertise in balance-sheet optimization.

Expense and Profitability Analysis

• Personnel expenses grew 71% YoY to ₦969.9 million, reflecting wage inflation and headcount expansion in the technology and digital divisions.
• Operating expenses climbed 28% YoY to ₦962.4 million — well below revenue growth, evidencing solid cost discipline.
• Credit-loss expense dropped sharply (-43%) to ₦14.9 million, indicating strong credit-risk management.
• Operating leverage improved materially, pushing PBT margin to 59.1% (9M 2025) from 57.7% (9M 2024).
• Net margin rose to 40.2%, affirming the firm’s capital-efficient, low-funding-cost business model.

Balance-Sheet Overview (₦ ‘000)

Item | Sep-25 | Dec-24 | Δ YoY

Total Assets | 41,925,323 | 34,845,257 | +20.3%

Debt Instruments (at amortised cost) | 32,743,523 | 26,321,112 | +24.4%

Equity Instruments (FVOCI) | 4,873,433 | 4,518,375 | +7.9%

Customer Deposits | 26,595,136 | 20,815,492 | +27.8%

Total Liabilities | 30,264,986 | 24,007,057 | +26.1%

Total Equity | 11,660,337 | 10,838,200 | +7.6%

Interpretation: The company’s asset base expanded by 20%, primarily from higher financial-asset holdings and increased customer deposits, which fund its investment activities. Equity rose 7.6% to ₦11.66 billion, supported by retained earnings and fair-value gains of ₦367 million on quoted equities.

Liquidity and Capital Adequacy

• Cash and cash equivalents: ₦952 million (vs ₦1.19 billion FY 2024) — reflects redeployment into higher-yield assets.
• Deposit-to-asset ratio: 63% (vs 60%) — stable funding profile.
• Debt-to-equity: 2.6× — within historical norms for the registrar-fintech model.

Comprehensive Income Impact

A ₦367 million fair-value gain on quoted equities boosted total comprehensive income to ₦2.42 billion, up 81% YoY. The company continues to benefit from upward repricing of listed equity investments.

Strategic and Operational Highlights

• Ongoing transformation from a pure share-registration firm into a digital solutions and fintech enabler.
• Investment in automation and API-driven registrar services has enhanced recurring revenue streams.
• Doubling of share capital to ₦2 billion strengthens the balance sheet and supports future digital expansion.

Analyst Commentary - Robust earnings momentum sustained by interest income and digital revenue growth

“Africa Prudential’s 9M 2025 results demonstrate strong earnings momentum, resilient margins, and consistent portfolio growth. The company’s strategic pivot toward digital services is gaining traction, while its robust investment income continues to underpin profitability. Management’s balance between innovation and prudent capital deployment keeps the firm on a solid growth trajectory.”

Outlook

Short-Term: Sustain high-yield investment returns amid tight monetary conditions. Medium-Term: Deepen digital-solutions adoption to diversify income away from interest dependence. Risks: Yield-curve reversal, regulatory shifts in registrar services, and inflation-linked operating-cost pressures.

Conclusion

Africa Prudential Plc remains one of Nigeria’s most efficiently run financial-services firms, combining steady core revenue growth with excellent balance-sheet management. We maintain a positive outlook, supported by strong liquidity, rising profitability, and a scalable digital business model.