Custodian Investment Achieves Highest Profit Growth in 10 Years

Custodian Investment Plc recorded profit in the second quarter of the year, even amid a difficult business environment as the company’s attractive valuation is an entry point for investors.

Custodian Investment’s profit surged by 354.36 percent to N22.40 billion as at June 2024 from N4.93 billion as at June 2023, the largest bottom line expansion in more than a decade.

The considerable jump in the company’s profits highlights the effectiveness of innovative products as each business segment contributes to the Group’s earnings.

Analysis by MoneyCentral shows an expansion in revenue and uptick in investment income that was propelled by juicy yields as some insurers who had put their money in government bonds earned higher returns as the central bank’s tightening circle is a boon to financial institutions with a strong balance sheet.

As of the latest update on 26 Jul 2024, the Nigeria 10 years government bond has a yield of 20.251 percent. This yield represents the annual return that investors can expect to receive if they hold the bond until its maturity in 10 years.

The Monetary Policy Committee (MPC) of the central bank has increased the benchmark interest rate by 150 basis points from 24.75 per cent to 26.75 per cent.

Nigeria’s inflation rate increased to 34.19 percent in June 2024, according to data released by the National Bureau of Statistics on Monday, July 15, 2024.

Custodian Investment’s insurance service revenue spiked by 47.21 percent to N60.96 billion in the period under review from N41.47 billion the previous year.

The company has a price to earnings of 2.21x, which means its shares are cheap to be bought by investors as it has a dividend yield (DY) of 7.84 percent.

About Custodian Investment

Custodian Investment Plc is an investment holding company. The Company has interests in life and non-life insurance, pension fund administration, trusteeship and property holding companies. Its segments include Non-life business, Life business, Pension administration, Property development and management and Trustees and others.

The Non-Life Business segment offers a variety of insurance products for both individual and corporate customers.

The Life Business segment offers a range of life insurance products on both individual and group basis, including annuity, endowment and investment-oriented products, insurance products with discretionary participatory features.

The Pension Administration segment includes the administration and management of the retirement benefits of members. The Property development and management segment engages in the acquisition, development, sale, and management of a diverse mix of commercial, residential, hospitality and retail property assets across Nigeria.