The earnings of Custodian Investment Plc, an investment company in Nigeria, rose to the highest for the first time in ten years, according to data compiled by BusinessDay.
The firm’s latest financial statement shows its after-tax profit rose 278.8 percent to N44.7 billion in nine months of 2024 from N11.8 billion in the same period of the previous year.
Custodian Investment is a conglomerate with significant holdings in companies and brands, including Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees, Crusader Sterling Pensions Limited, and UPDC Plc.
Further analysis shows that net investment income grew to N74.1 billion from N26.4 billion in the corresponding period of 2023. The increase was due to a rise in interest income to N24.6 billion in nine months of 2024 from N14.9 billion.
The company’s operating and investment income grew to NN11 billion from N8.9 billion while net realised gains grew to N3.8 billion from N564.7 million.
Custodian’s pre-tax profit rose by N52.4 billion from N14.3 billion while total revenue during the period rose to N92.1 billion from N64 billion.
Insurance service expenses rose to N64.3 billion from N32.1 billion as the cost of doing business rocketed in the face of Nigeria’s inflation.
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Custodian Investment’s net insurance finance expenses for the period declined to N7.3 billion from N12.3 billion while net income grew to N65.6 billion from N24.5 billion.
Fees and commission income increased to N4.7 billion from N3.7 billion, other operating income declined to N351.6 million from N662.7 million.
The investment company’s total assets rose to N389 billion in nine months from N275 billion in the year ended 2023 while total liabilities rose to N265.7 billion from N193.6 billion.
Its shareholders’ fund during the reviewed period also rose to N123.3 billion from N81.5 billion, this was driven by the fair value reserves of N34.6 billion from N2.1 billion, indicating that the assets or investments held by the company have increased in value according to their market value or fair value assessments.
Net cash generated by/(used in) operating activities amounted to N39.7 billion from N23.5 billion, the rise in its cash from its core business activities implies that the company is generating more money from its daily operations which in turn impacts its working capital.
Net cash generated by/(used in) investing activities amounted to N40.9 billion, and Net cash used in financing activities amounted to a negative N4.9 billion.
Cash and cash equivalents at the end of the period amounted to N42.9 billion from N23 billion.
Custodian Investment offers a range of insurance products, including home, personal accident, critical illness, motor insurance, wealth management services, and lifestyle products.
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