African Prudential’s half-year profit after tax rose 18 percent year-on-year, climbing to N1.58 billion from N1.34 billion in 2025, according to the company’s H1 2026 financial results.
This bottom-line growth was underpinned by a strong top-line performance, as revenue rose 41 percent year-on-year to N742.32 million from N526.47 million in 2025, and interest income also reached N3.46 billion for the half year, a 30 percent rise from N2.65 billion in the prior year, anchored by the advantage of a high-yield interest rate environment.
The financial services firm’s strong performance in income generation was largely driven by sustained growth in registrar maintenance services, corporate action fees, and the expansion of digital technology services under management’s diversification strategy.
The company also reported a 21 percent jump in profit before tax, reaching N2.40 billion for H1 2026, up from N1.97 billion in H1 2025.
Total assets surged 13 percent to N46.5 billion, driven largely by growth in debt instruments at amortised cost, which rose to N35.0 billion from N32.1 billion at the end of 2025. The company recorded an asset-to-liability ratio of 1.37x.
Return on Average Equity stood at 13 percent, reflecting how efficiently the company is converting profitability into shareholder value. Return on Average Assets was maintained at 3.6 percent, underscoring the company’s strong financial foundation and disciplined use of its asset base to generate returns.
The company maintained a healthy liquidity position, generating N6.81 billion in net operating cash flow, a modest decline from N7.55 billion in the corresponding period of 2025.
Investing activities absorbed N4.59 billion in net cash outflows, largely driven by N3.17 billion allocated to the strategic acquisition of debt instruments at amortised cost.
On the financing side of the cash flow statement, the company recorded a net outflow of N1.60 billion, attributable to dividend distributions to shareholders. As a result, cash and cash equivalents closed the period on a stronger note at N1.11 billion compared to N177.01 million in H1 2025.
The interim financial statements also announced several key regulatory and structural achievements. The company has already met the revised minimum capital requirement of N2.5 billion, comfortably ahead of the 30 June 2027 regulatory deadline. In addition, Africa Prudential Plc recorded a free float of 73.96 percent, well within the Nigerian Exchange’s free float requirements for main board-listed companies.
Despite its capital position in order, regulatory compliance secured, and earnings trending upward, African Prudential lost 8.11 percent year-to-date on its share price and is currently trading at N13.50 per share and a market capitalisation of N54.4 billion.