Africa Prudential Plc has released its unaudited results for the third quarter ended September 30, 2025, reporting a pre-tax profit of N1.043 billion, representing a 24% year-on-year (YoY) increase.
For the nine-month period, pre-tax profit climbed to N3 billion, up 54% compared to the same period in 2024.
The company’s gross earnings grew by 29.7% YoY to N1.863 billion in Q3, pushing the nine-month gross earnings to N5.208 billion, up 49% YoY.
A closer look at the unaudited financials shows that interest income continues to drive performance, growing 31% in Q3 to N1.355 billion and accounting for about 73% of gross earnings.
This strong interest income aligns with Africa Prudential’s balance sheet structure, which is heavily skewed toward interest-bearing assets.
While interest-driven revenue growth remains strong, operating expenses increased faster than gross earnings, rising 37% to N751 million in Q3 and consuming 42% of net operating income.
This suggests that a larger portion of income is being spent on operations, reducing the efficiency of converting earnings into profit.
For investors, this is a key area to watch—if cost growth continues to outpace revenue, it could pressure future margins despite solid interest income growth.
Strong margins offset rising costs
Despite higher expenses, Africa Prudential maintained robust profitability in Q3 2025. The company incurred no finance cost, and its margins remained healthy:
This highlights the company’s operational efficiency and ability to sustain strong bottom-line performance even in the face of rising costs.
Africa Prudential’s balance sheet remains firmly anchored in interest-generating assets, reflecting its conservative but income-focused investment approach.
As of September 2025, the company’s total assets stood at N41.9 billion, with a large portion of N32.7 billion, or about 79% held in debt instruments measured at amortized cost.
Most of these are deposits with banks with maturities above 90 days (N3.124 billion), which continue to deliver the bulk of the firm’s interest income.
In contrast, Treasury Bills contributed little, with a modest balance of N533.4 million, highlighting the company’s preference for higher-yielding bank placements over low-return government securities.
Meanwhile, shareholders’ funds stood at N1.66 billion, accounting for 28% of total assets. This structure highlights Africa Prudential’s measured funding strategy balancing equity strength with steady, interest-earning liabilities to drive consistent returns.
Meanwhile, shareholders’ funds stood at N1.66 billion, accounting for 28% of total assets. This structure highlights Africa Prudential’s measured funding strategy balancing equity strength with steady, interest-earning liabilities to drive consistent returns.
Share price performance
Africa Prudential shares as of October 2025 were prices at N14 per share reflecting a YTD loss of 31.87%.
This contrasts sharply with the 178% YtD gain recorded during the same period last year.