Custodian Investment Plc has published its financial statements for the first quarter of 2026, reporting a profit before tax of N21.42 billion, beating its Q1 profit forecast of N13.5 billion.
This performance represents a 73.74% year-on-year increase from N12.3 billion in Q1 2025, driven largely by a stronger investment result at the top line.
Among key investment drivers, interest income more than doubled to N35.1 billion from N10.3 billion, driven mainly by call deposits and amortized cost investments, with net fair value gains of N17.9 billion as the second-largest component.
On the insurance side, revenue stood at N37.3 billion, with non-life business accounting for 68.9% and life insurance making up the remainder, although associated costs reduced the insurance service result to N908.09 million.
Key highlights (Q1 2026 vs Q1 2025)
- Interest income: N35.1 billion, up 238.80% YoY
- Net fair value gains: N17.9 billion vs (a loss of N3.3 billion)
- Investment result: N47.6 billion, up 301.52% YoY
- Insurance service result: N908.09 million, up 318.36% YoY
- Net insurance finance expenses: N16.7 billion vs (gain of N5.4 billion)
- Net income: N29.9 billion, up 85.58% YoY.
- Pretax income: N21.4 billion, up 73.74% YoY.
- Retained earnings: N158.7 billion, up 10.65% YoY.
Driving the numbers
A cursory look at the top line shows interest income rising to N35.1 billion, while interest expenses also surged to N14.1 billion, compared to none recorded in the previous year.
- However, operating and investment income of N7.7 billion, driven by ‘fees and commissions’ and sales, alongside N17.9 billion net fair value gains, lifted investment service result to N47.6 billion from N11.8 billion.
On the insurance side, revenue stood at N37.3 billion, lower than N43.8 billion in the previous year, reflecting a softer top-line performance in the segment.
- Nevertheless, insurance service expenses rose sharply to N23.2 billion, with reinsurance costs of N13.1 billion, leaving insurance service result at N908.09 million, up 318.36% year-on-year.
After N16.7 billion in net insurance finance expenses and N1.8 billion in direct operating expenses, net income from combined operations settled at N29.9 billion.
Following management expenses of N9 billion and other bottom-line items, profit before tax stood at N21.4 billion, while after-tax profit settled at N17.8 billion, with Earnings Per Share at N2.65.
Balance sheet
On the balance sheet, total assets rose to N1.1 trillion from N1.06 trillion, with financial assets at N646.4 billion as the largest class, followed by cash and cash equivalents of N163.9 billion and loans and advances to customers of N114.8 billion.
Retained earnings increased to N158.7 billion from N143.4 billion, bringing total equity to N251.8 billion.
Insurance contract liabilities of N318.7 billion remained the largest obligation, accounting for most of total liabilities of N856.7 billion, up from N846.1 billion.
Market reaction
Shares of the company are up 1.99% just an hour after market open on April 29, 2026, trading at N87 per unit.
With a year-to-date return of 102%, the market might still react to the results if investors view them as favourable.
