By Samiat Nov, 27, 2024 Business
Custodian Investment Plc has achieved a historic milestone, reporting its highest profit in a decade. The Nigerian investment giant saw its after-tax profit skyrocket by an impressive 278.8%, reaching ₦44.7 billion in the first nine months of 2024, compared to ₦11.8 billion during the same period in 2023.Key Highlights:
1️⃣ Stellar Net Investment Income
• Increased to ₦74.1 billion from ₦26.4 billion (2023).
• Boosted by rising interest income of ₦24.6 billion (2024) vs. ₦14.9 billion (2023).
2️⃣ Robust Revenue Growth
• Total revenue surged to ₦92.1 billion, a 44% jump from ₦64 billion in 2023.
• Pre-tax profit soared to ₦52.4 billion, a remarkable leap from ₦14.3 billion.
3️⃣ Expanded Business Operations
• Operating and investment income grew to ₦11 billion, up from ₦8.9 billion.
• Net realized gains surged to ₦3.8 billion, a significant increase from ₦564.7 million.
4️⃣ Strong Asset Position
• Total assets climbed to ₦389 billion, a 42% increase from ₦275 billion in 2023.
• Shareholders’ funds also rose sharply to ₦123.3 billion, driven by fair value reserves of ₦34.6 billion from ₦2.1 billion.
Challenges Amidst Growth:
• Insurance service expenses doubled to ₦64.3 billion from ₦32.1 billion, reflecting rising costs amid Nigeria’s inflationary pressures.
• Other operating income dropped to ₦351.6 million from ₦662.7 million, underscoring challenges in non-core income streams.
Cash Flow and Liquidity:
• Net cash from operating activities increased to ₦39.7 billion (from ₦23.5 billion).
• Cash and cash equivalents rose to ₦42.9 billion, up from ₦23 billion, highlighting the firm’s ability to generate cash from its core operations.
Company Profile:
Custodian Investment Plc is a leading Nigerian conglomerate with investments in various sectors, including insurance, pensions, and real estate. Key subsidiaries include:
• Custodian and Allied Insurance Limited
• Custodian Life Assurance Limited
• Crusader Sterling Pensions Limited
• UPDC Plc
What This Means:
Custodian Investment’s record-breaking performance underscores its resilience and strategic positioning in Nigeria’s financial landscape. By leveraging diverse income streams and adapting to economic challenges, the firm continues to create value for its shareholders and stakeholders.
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