Last Update28 Jul 25Fair value Decreased 61%
WaneInvestmentHouse has decreased revenue growth from 99.0% to 5.5%.
Overview: Africa Prudential delivered a strong first-half performance in 2025, growing profit after tax by 72.6% YoY to ₦1.35 billion, largely on the back of a surge in interest income and improved revenue from contracts with customers. However, rising operating expenses, significant drawdown in cash position, and elevated customer deposit liabilities present risks to liquidity and capital efficiency.
✅ Key Strengths
- Robust Revenue Growth: Total revenue (customer contracts + interest + other income) increased 63.8% YoY to ₦3.3 billion, driven by a 78.9% YoY growth in interest income.
- Improved Profitability: PAT rose by 72.6% YoY, from ₦779 million in H1 2024 to ₦1.35 billion in H1 2025.
- Strong Balance Sheet Growth: Total assets expanded 18.7% YTD to ₦41.35 billion, supported by a 25.4% rise in debt instruments and a substantial increase in deposits for shares (₦820 million vs ₦70 million).
- Equity Capitalization: Share capital doubled to ₦2 billion, reflecting potential for capital restructuring or enhanced dividend capacity.
- Fair Value Gain: ₦83.8 million gain on quoted equity instruments helped lift total comprehensive income to ₦1.43 billion (+86.1% YoY).
⚠️ Weaknesses / Risks
- High Operating Expenses: Personnel and other operating expenses surged by 78.4% and 35.6% YoY respectively, eroding some margin gains.
- Amortization Spike: Intangible asset amortization more than doubled to ₦72.2 million, likely tied to digital platform investments.
- Liquidity Stress: Cash and cash equivalents dropped by 85% YTD to ₦177 million from ₦1.19 billion, despite deposit liabilities rising by 38.7%.
- High Leverage Exposure: Customers’ deposits now account for 70% of total assets, indicating increased exposure to short-term obligations.
- Earnings Dilution: EPS fell from 39 Kobo (H1 2024) to 34 Kobo in H1 2025, despite higher absolute profits—suggesting share capital increase impacted per-share returns.
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Disclaimer
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