CardinalStone Partners Limited’s assets under management (AUM) increased to $236.5M as at 30 September 2024 from $218.5M as at 31 December 2023. This translates to a Naira AUM of about N390.2Bn per current exchange rates.
The firms AUM size- a key driver of performance, relative to other financial services companies with similar business offerings. CardinalStone Partners largest subsidiary- CardinalStone Asset Managers Limited (CAML) is one of the biggest asset managers in Nigeria based on AUM.
The group’s stockbroking subsidiary- CardinalStone Securities Limited (CSSL) also maintained market leadership of stockbroking in Nigeria as it was the top trader by volume traded and number two (2) trader by value traded on Nigerian Exchange during the first nine months of 2024.
Analysts expect CardinalStone Partners to continue on its growth trajectory especially as investors seek to increase and preserve wealth during a period of high interest rates.
The group’s asset manager has positioned itself with the launch of three new funds which cater to different investor needs and categories. However, CardinalStone Partners reliance on short-term debt funding puts a strain on earnings and cash flow stability.
As debt grows, the maturity profile tends to be shorter, posing increased cash flow and leverage risks. As of 31 December 2023, the proportion of short-term debt to total debt increased to 95.2% from 81.2% just the year before.
Despite CSP’s relatively riskier funding structure, liquidity is strong, supported by good cash and cash equivalent balances maintained by the group as a matter of policy.
CardinalStone Partners exposure to credit risk is growing with increased lending in the forms of margin and secured loans. However, on the back of write-offs and recovery efforts which began in 2023, the group’s non-performing loans (NPLs) have declined relative to gross loans from 37.9% in 2022 to 16.3% in 2023 and further to 12.6% as at June 2024.
At the same time, CSP implemented stricter lending rules which should support further improvements in asset quality.
CardinalStone is an independent, multi-asset investment management firm offering an assortment of financial services to a diverse institutional, high net worth and retail clientele base.
The company began operations in June 2008 and its business is conducted across six divisions – Investment Banking, Asset Management, Securities Trading, Trust Services, Registrar Services and Financing.
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 increased to $236.5M as at September 2024 from $218.5M as at December 2023.){kind=link}