Royal Exchange Profit Slumps 14.85% Amid Robust Liquidity Position

Royal Exchange Plc capitulated to local and global economic headwinds as the company’s profit slumped even amid a robust liquidity position that provides flexibility for the future investment.

In a statement posted on the NGX Limited website, Royal Exchange profit after tax (PAT) reduced by 14.85 percent to N851.42 million in December 2025 from N1 billion as at December 2024.

While the Company remains dedicated to capitalizing on market opportunities and ultimately generating value for shareholders, it is not impervious to global and local economic headwinds, including macroeconomic turbulence, financial market volatility and domestic challenges like fuel subsidy removal and foreign exchange fluctuations.

Royal Exchange Group currently comprises Royal Exchange Plc (parent entity), Royal Exchange General Insurance Limited, Royal Exchange Microfinance Bank, Royal Exchange Finance Company Ltd and Royal Exchange Healthcare Limited, now DOTHMO.

The principal activities of the Group are general insurance, health insurance and credit financing.

The Group delivered positive earnings performance in FY2025 with increased revenue attributable to investment income and share of profit in associate companies contributing to the Groups overall top line.

Key Financial Highlights

Amid a challenging business environment, Royal Exchange recorded top line (Sales) growth.

• Revenue Growth: The Group delivered positive earnings performance in FY2025 with increased revenue attributable to investment income and share of profit in associate companies contributing to the Groups overall top line. The Group achieved increased revenue across its investment companies with an increase in net Income of 133 percent from N767 million to N1.7 billion FY 2025 and 2024, respectively.
• Total Expenses increases: Total expenses reduced by 24 percent from N969 million to N728 million in FY 2025. The Group recorded a profit Tax position of N1.04bn in FY 2025.
• Expansion in Total asset: Total asset was up 30.43 percent to N12 billion in the period under review from N9.20 billion as at December 2024, thanks to upticks in cash and cash equivalent and investment in associates.

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