Custodian Investment Plc recorded an improvement in profit even amid spiraling interest expense which enabled it to navigate market volatility effectively while expanding its presence in key growth sectors of the economy.
The company just released its nine months financial statement that showed profit after tax (PAT) increase by 26.28 percent to N57.59 billion from N45.64 billion as at September 2025.
Insurance service revenue rose by 4.81 percent to N115.84 billion in the period under review from N121.70 billion the previous year.
A breakdown of the revenue figure shows that non-life insurance service revenue was up 7.64 percent to N79.67 billion in September 2026 from N74.01 billion as at September 2025. However, life insurance service revenue dipped by 24.15 percent to N36.17 billion in September 2026 from N47.69 billion as at September 2025.
It is important to note that the growth in profit is amid N50.77 billion interest expense in the period under review. The breakdown of the figure shows deposits from customers, N28.82 billion, and borrowings from banks and other financial institutions, N21.94 billion.
The company still enjoys juicy yield even as the central bank is gradually lowering interest rates as inflationary pressure eases.
Interest income from investment and other deposits surged by 232.04 percent to N110.14 billion as at December 2026 from N33.17 billion as at September 2025.
Analysts say it is end of year free lunch for insurers as the Apex Bank dovish stance indicates there is going to be a sharp reduction in gains from government bonds and short-term treasury bills.
The Monetary Policy Committee (MPC) of the central bank has cut the benchmark interest rate by 350 basis points to 23 per cent from 26.5 per cent, as easing inflation and improved foreign exchange conditions created room for the biggest rate adjustment in the current monetary policy cycle.
The benchmark yield on Nigerian government sovereign debt stands at 16.35 percent, while the Nigeria 10-year government bond yield hovers around 16.85 percent to 16.846 percent as of November 2026.
The customer has maintained a resilient balance sheet supported by excellent risk management approach as it mitigates risk across all business segments.
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