Royal Exchange Plc has released its H1 2026 financial statement, reporting a sharp decline of 94.2% in pre-tax profit.
The financial services group reported a profit before tax of N87.72 million for the six months ended 30 June 2026, a significant decline from N1.51 billion recorded in the corresponding period of 2025.
The result, filed on the Nigerian Exchange (NGX) on Wednesday, July 29, 2026, reflects lower investment-related earnings and softer operating income.
During the second quarter, profit before tax fell to N100.88 million, down from N757.40 million in the second quarter of 2025 and below the first-quarter profit of approximately N13.16 million, resulting in a cumulative first-half profit before tax of N87.72 million.
Also Read
Key Highlights
- Profit Before Tax: N87.72 million (Down 94.2% YoY from N1.51 billion).
- Operating income: N283.98 million (down from N856.83 million in 2025)
- Net interest income: N23.91 million (a sharp fall from N123.43 million)
- Administrative expenses: N339.86 million (an increase from N198.88 million)
- Profit After Tax: N87.72 million (Down 94.2% YoY from N1.51 billion).
Driving the numbers
Royal Exchange’s earnings weakened significantly during the first half of 2026 as operating income declined and the contribution from its associate reduced materially.
- The group recognised N315.48 million as its share of profit from its associate during the six-month period compared with N1.55 billion in the corresponding period of 2025, removing a major earnings driver that supported last year’s performance.
- Second-quarter results also reflected weaker profitability. Operating income declined to N283.98 million from N856.84 million a year earlier, while administrative expenses increased to N183.10 million from N99.44 million. As a result, quarterly profit before tax fell by more than 86% year-on-year to N100.88 million.
- Cash flow remained relatively resilient despite the weaker earnings performance. The group generated N1.43 billion in net cash from operating activities, supported by favourable working-capital movements.
However, investing activities consumed N933.77 million, largely due to purchases of investment securities and trustee assets, while financing activities used N1.25 billion, mainly from movements in trustee liabilities and borrowings. Consequently, cash and cash equivalents closed the period at N1.31 billion.
Shareholders’ funds increased modestly to N7.21 billion at the end of June 2026 from N7.12 billion at the beginning of the year, reflecting the period’s profit despite retained earnings remaining in a deficit position.
Balance Sheet
Cash Balance: N1.31 billion (Up 24.7% from N1.05 billion at 30 June 2025).
Net cash used by operating activities: N1.43 billion (Up from N77.27 billion in H1 2025)
Market reaction
Royal Exchange share price closed at N1.37 as of 28 July 2026, compared with N1.86 at the end of 2025.
On January 21, the share price climbed to N2.40, its highest year-to-date.
Royal Exchange’s associates include REX Insurance, Royal Exchange Microfinance Bank and DotHMO.
What you should know
The sharp decline comes after a board shakeup earlier in the year, following the retirement of Mr. Kenny Ezenwani Odogwu after serving as Group Chairman for 18 years.
- Mr. Ikeme Osakwe was then appointed as its new Group Chairman, leading a board that include Ms. Pamela Yough, Mr. Afolabi Caxton-Martins, Mr. Ezekiel Onilude, Chief Anthony Idigbe, SAN, Senator Sanusi Mohammed Daggash, and Mrs. Idu Okeahialam.
- This follows the acquisition of 1.77 billion ordinary shares by Nexamont Company Limited in 2025, representing a 21.4% equity stake in the company.
The acquisition, executed via the secondary market, makes Nexamont a significant beneficial owner in one of Nigeria’s long-standing financial services institutions.
