Custodian Investment Plc, a leading Nigerian conglomerate with diverse holdings in the insurance and pension sectors, has reported its highest earnings in a decade, with a remarkable 278.8% rise in after-tax profit for the first nine months of 2024. The company’s latest financial statement reveals an after-tax profit of N44.7 billion, up from N11.8 billion in the same period last year.
The surge in earnings is driven by a significant increase in the company’s net investment income, which grew to N74.1 billion from N26.4 billion in 2023. This boost was largely due to a rise in interest income, which climbed to N24.6 billion from N14.9 billion. Custodian’s total revenue for the period also saw a notable increase, rising to N92.1 billion from N64 billion, while pre-tax profit surged by N52.4 billion to N14.3 billion.
Custodian Investment, which owns and operates major companies such as Custodian and Allied Insurance, Custodian Life Assurance, Crusader Sterling Pensions, and UPDC Plc, is benefiting from a strong performance across its subsidiaries. The company’s operating and investment income rose to N11 billion, up from N8.9 billion in 2023, while net realised gains grew significantly to N3.8 billion from N564.7 million.
Despite inflationary pressures impacting the cost of doing business in Nigeria, the company saw its insurance service expenses rise sharply to N64.3 billion, up from N32.1 billion. However, its net insurance finance expenses declined to N7.3 billion, down from N12.3 billion, contributing to its overall growth.
Custodian’s total assets reached N389 billion, up from N275 billion at the end of 2023, while total liabilities rose to N265.7 billion. The company’s shareholders’ equity also saw substantial growth, increasing to N123.3 billion from N81.5 billion, largely driven by an increase in the fair value of its investments, which rose to N34.6 billion from N2.1 billion.
Cash flow from operations strengthened, with net cash generated amounting to N39.7 billion, compared to N23.5 billion in 2023. Cash and cash equivalents at the end of the period totaled N42.9 billion, a significant increase from N23 billion in the previous year.
The company’s improved financial performance positions Custodian Investment as a major player in Nigeria’s insurance and investment sectors, offering a wide range of products, including home, motor, personal accident, critical illness insurance, and wealth management services.