Custodian Investment Plc, a leading Nigerian investment company, has reported a significant 278.8% increase in after-tax profit for the first nine months of 2024, reaching N44.7 billion, up from N11.8 billion during the same period in 2023. This marks the highest earnings for the company in a decade, according to data compiled by BusinessDay.
The firm, which holds stakes in several major companies including Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees, Crusader Sterling Pensions Limited, and UPDC Plc, saw impressive growth across key financial metrics.
Key highlights from Custodian Investment’s financial results include:
- Net Investment Income surged to N74.1 billion from N26.4 billion in 2023, driven by a rise in interest income, which increased to N24.6 billion from N14.9 billion.
- Operating and Investment Income grew to N11 billion, up from N8.9 billion.
- Net Realized Gains soared to N3.8 billion from just N564.7 million in 2023.
- Pre-tax Profit rose by N52.4 billion to N66.7 billion, compared to N14.3 billion in 2023.
- Total Revenue for the period increased to N92.1 billion, up from N64 billion in the previous year.
While the company’s operating expenses increased due to the inflationary pressures in Nigeria, with Insurance Service Expenses rising to N64.3 billion from N32.1 billion, Custodian managed to contain its Net Insurance Finance Expenses, which declined to N7.3 billion from N12.3 billion.
In addition to strong earnings, Custodian Investment’s total assets grew to N389 billion, up from N275 billion in 2023, while liabilities increased to N265.7 billion from N193.6 billion. Shareholders’ equity also rose to N123.3 billion, reflecting a significant increase in the fair value of its assets, which jumped to N34.6 billion from N2.1 billion.
The company also demonstrated a strong cash position, with Net Cash Generated from Operating Activities rising to N39.7 billion from N23.5 billion, further reflecting its growing cash flow from core operations. Cash and Cash Equivalents stood at N42.9 billion, up from N23 billion in 2023.
Custodian Investment’s diverse portfolio of services, including insurance products, wealth management, and lifestyle offerings, continues to position the company as a major player in Nigeria’s financial sector.