Royal Exchange Plc delivered a pre-tax profit of ₦1.49 billion in Q3 2025, marking a 90% increase year-on-year.
Notably, earned income soared 86% to ₦1.86 billion, driving revenue growth despite economic pressures.
Royal Exchange Profit Growth
Meanwhile, interest income more than tripled to ₦287.03 million, according to the unaudited financial statement filed with the NGX on October 14, 2025.
Consequently, the company reported no tax liability, although earnings per share fell 64% to ₦0.36, showing that shareholders did not fully benefit from higher profits.
Asset Expansion
On the balance sheet, Royal Exchange expanded total assets by 9.5% to ₦11.13 billion, supported by investments and cash growth.
Specifically, investments in associates climbed to ₦8.2 billion, accounting for 75% of total assets.
In addition, the company more than doubled loans and advances to ₦1.08 billion, reflecting increased lending activity.
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Similarly, cash and cash equivalents rose to ₦1.17 billion, strengthening the company’s liquidity position.
Shareholder Confidence
Moreover, shareholders’ funds grew 23% to ₦7.62 billion, boosted by share capital, share premium, and the recovery in retained earnings, which rebounded from a ₦1.69 billion deficit to a positive ₦429.5 million.
On the stock market, investors responded positively as the share price jumped from ₦1.00 to ₦2.33, achieving a 133% year-to-date gain.
Over the past three months, Royal Exchange ranked 20th in trading activity, with 990 million shares exchanged across 9,149 deals, valued at ₦2.08 billion.
Challenges Remain
However, the company recorded a negative operating cash flow of ₦740.9 million, although this improved from ₦1.16 billion last year.
Therefore, while profitability is rising, management must focus on converting earnings into cash to ensure long-term stability.
In conclusion, Royal Exchange demonstrates a strong recovery, combining profit growth, asset expansion, and improved shareholder confidence, but liquidity management remains critical.
