Royal Exchange Plc, a key player in Nigeria’s insurance and financial services sector, has reported a profit after tax of N496.8 million for the financial year ended March 31, 2025. This represents a 13 per cent drop from the N571.3 million profit posted in the same period of 2024, according to its unaudited financial results.
The group also saw a 16 per cent decline in its earned income, which dropped to N594 million in 2025 from N706 million in the previous year. Despite the dip in earnings and net profit, Royal Exchange showed notable improvement in its capital strength, as shareholders’ funds grew by 19 per cent from N6.01 billion to N7.17 billion.
Interest income for the group surged by 84 per cent to N143.7 million in 2025, compared to N77.9 million in 2024. At the same time, interest expense declined by 15 per cent to N41.2 million. This led to a significant 261 per cent growth in net interest income, which rose to N105.9 million.
Royal Exchange also earned N437.3 million as its share of profit from investments in associates. Although this was lower than the N674.2 million recorded in 2024, it still contributed significantly to the group’s overall performance.
Management expenses were reduced considerably, dropping by 28 per cent to N97.3 million in 2025, down from N134.7 million a year earlier. The cutback reflects the group’s renewed focus on operational efficiency and cost control in a challenging business environment.
Royal Exchange’s total assets stood at N9.69 billion as of March 31, 2025, reflecting a slight increase from N9.64 billion in the previous year. The group also made considerable progress in reducing its debt, with borrowings slashed by 43 per cent to N1.04 billion. Additionally, its current income tax liabilities fell sharply by 97 per cent to N6.5 million, offering further relief to its balance sheet.
On the Nigerian Exchange, the company’s share price appreciated by 26 per cent to N0.63 per share, reflecting investor confidence despite the decline in net profit. However, basic earnings per share fell by 40 per cent to N10.
The group, which operates in life assurance, health insurance, and credit financing, has faced some challenges in its recent fundraising efforts. Its rights issue, aimed at raising fresh capital, closed with a 75.83 per cent subscription rate, falling short of a full uptake. Analysts view the under-subscription as a sign of cautious investor sentiment amid broader macroeconomic uncertainties.
Despite these hurdles, the firm’s overall performance has been marked by prudent financial management, stronger capital buffers, and positive returns from strategic investments. The improved shareholders’ fund is seen as a cushion for future growth and a signal of resilience in the face of declining core income.
Royal Exchange is expected to continue implementing measures to improve earnings and enhance its position in Nigeria’s highly competitive insurance and finance sectors. Market watchers will be closely observing the company’s next move, especially as it looks to reposition through digital transformation, product innovation, and strategic partnerships.
