Custodian Investment Plc has reported a profit after tax of N1 billion for the three months ended 30th September 2022. The amount represents a 164% rise from the N397 million in the Q3 of last year.
Custodian Investment Plc is an investment holding company with significant interests in life and non-life insurance, pension fund administration, trusteeship, and property holding companies. It recently added real estate as a new business area after it acquired a majority stake (51%) in UPDC Plc.
Improved earnings – Third-quarter profits were driven largely by improved gross earnings of N27 billion a 17.5% increase from the N23 billion reported same quarter last year.
- A significant chunk of its revenues (N23 billion) was from its Operating and Investment Income segment which is dominated by its insurance business.
- The company also earned N3.9 billion in interest income for the period under review up from N3 billion same period last year.
Expenses the company reported a rise in net claims expenses during the quarter jumping to N6.3 billion from N4.4 billion same period last year. Insurance claims is a significant portion of the company’s costs.
Cash – the company’s ended the quarter with a cash balance of N20.4 billion out of which about N15.6 billion is placed with banks. The company reported actual cash received from insurance contracts was N19.6 billion while investment income was N10.8 billion. The company also paid N3.1 billion in dividend payments from its free cash flows.
UPDC Business – the company lent N2.5 billion to its UPDC subsidiary as related party loans.