Africa Prudential H1 2026 pre-tax profit jumps 21.68% to N2.41 billion
By Aboki Forex —
Africa Prudential Plc reported a pre-tax profit of N2.41 billion for the first half of 2026, up 21.68% year-on-year from N1.98 billion in H1 2025. The growth was driven by higher interest income and a sharp increase in revenue from contracts with customers.
For the second quarter alone, pre-tax profit stood at N1.63 billion, a 27.67% jump from N1.27 billion in Q2 2025 and a 107.75% surge from N782.36 million in Q1 2026. Profit after tax for H1 2026 rose 18.10% to N1.59 billion from N1.35 billion, with Q2 contributing about 67% of the total. Q2 profit after tax grew 23.92% year-on-year to N1.07 billion from N865.55 million.
Earnings per share stood at 40 kobo for H1 2026, supported by a 22.73% year-on-year increase in Q2 EPS to 27 kobo from 22 kobo in Q2 2025.
Revenue and income drivers
Revenue from contracts with customers climbed 41.00% to N742.32 million from N526.47 million. Fees from corporate actions remained the largest source of service revenue, contributing N497.99 million, or about 67% of H1 revenue from contracts with customers, compared with N336.46 million in H1 2025. Registrar maintenance revenue increased to N222.60 million from N180.00 million, while digital technology revenue more than doubled to N21.73 million from N10.00 million.
Interest income, the biggest contributor to overall operating income, rose 30.59% to N3.46 billion from N2.65 billion. The increase was driven largely by interest on short-term deposits, which climbed to N3.35 billion from N2.54 billion. Interest on loans and advances increased to N71.61 million from N64.47 million, while interest on bonds declined to N33.58 million from N39.98 million.
Net operating income reached N4.21 billion, up 26.95% from N3.32 billion in H1 2025. However, rising operating costs partly moderated the impact on profitability. Personnel expenses jumped about 50% to N968.45 million from N645.45 million, driven mainly by higher wages and salaries and other employee benefits. Other operating expenses also rose to N753.40 million from N638.35 million.
Balance sheet highlights
Total assets expanded by 11.01% to N46.52 billion, reflecting an increase in debt instruments at amortized cost to N35.01 billion from N32.14 billion. Cash and cash equivalents more than doubled to N1.11 billion from N488.45 million at December 2025. Deposits for shares increased to N1.40 billion from N500 million.
On the liabilities side, customers' deposits rose 13.83% to N30.10 billion from N26.44 billion. Creditors and accruals jumped to N2.32 billion from N450.59 million. Total liabilities increased by 16.54% to N34.00 billion, while total equity declined by 1.65% to N12.52 billion.
Market reaction
Africa Prudential's shares closed at N13.20 on Friday, July 17, 2026, a 4.3% gain from the previous close of N12.65. The stock has gained 13.3% month-to-date in July, although it remains down 10.8% year-to-date, having started 2026 at N14.80 per share. At the July 17 closing price, Africa Prudential had a market capitalization of N52.8 billion, ranking as the 72nd most valuable stock on the NGX.
For Nigerian investors, the strong cash position and rising interest income signal that Africa Prudential is benefiting from the high interest rate environment, but the sharp increase in personnel costs and decline in total equity warrant close monitoring. The stock's year-to-date loss suggests the market is still weighing these mixed signals.