Custodian Investment Plc Q1 2026 profit rose 63.1% to N17.9bn
Custodian Investment Plc delivered a strong Q1 2026 performance, with profit rising 63.1% year-on-year to N17.9bn, driven by improvements across its investment and insurance businesses. Sequentially, profit declined 16.5% from Q4 2025’s N21.4bn, reflecting normalization after an elevated prior quarter.
Investment performance was the key driver, with income surging 301.5% to N47.7bn. This was supported by a swing to N18.0bn in fair value gains (from a N3.3bn loss in Q1 2025), stronger realised gains, and a 238.8% jump in interest income to N35.1bn, reflecting the impact of the FBN Quest Merchant Bank acquisition. Despite interest expense of N14.2bn, the net contribution remained strong. Sequentially, investment income
rose 51.2%, largely driven by fair value gains.
Insurance Operations
Insurance operations also improved, with the insurance service result rising 318.4% year-on-year to N908.1mn as lower expenses (-21.7%) offset a decline in revenue (-14.9%), which appears timing-related. On a quarterly basis, the service result increased 745.2%, reflecting normalization in expenses, while the insurance service margin improved to 2.43% from 0.55%. However, net insurance finance income swung to a loss of N16.8bn (from N5.5bn income in Q1 2025), driven by finance charges on insurance liabilities.
Costs increased alongside expansion, with management expenses up 104.6% to N9.1bn and direct expenses rising 32.2%. Nonetheless, efficiency improved, as the cost-to-income ratio strengthened to -6.08% from -13.36% in Q4, indicating revenue growth is outpacing costs. This improvement was supported by fair value gains of N18bn; stripping this out, the cost-to-income ratio would have worsened to -15.1%. Profit
before tax rose 73.7% year-on-year to N21.4bn but declined 7.8% on a quarter-on-quarter basis.
Total Assets
Total assets grew 4.1% from Q4 2025 to N1.1trn as at Q1 2026, with financial assets expanding 8.4% to N646.5bn, reflecting continued deployment into the investment portfolio. Loans and advances declined 12.2% to N114.9bn, while cash and cash equivalents contracted 5.9%.
On the liabilities side, insurance contract liabilities expanded 17.7% to N318.8bn, consistent with business growth, while borrowings from banks declined 27.7%, suggesting active liability management. Shareholders’ equity grew 15.2% to N251.9bn, supported by retained earnings.
Overall, the results reinforce Custodian’s transition into a more diversified financial services group, with banking activities now playing a central role in earnings growth. The strong expansion in interest income highlights the upside from this shift, although funding costs and insurance finance charges remain key offsets.
Going forward, performance will hinge on the group’s ability to sustain net interest margins, manage its
enlarged cost base efficiently, and stabilize insurance finance outcomes, while continuing to grow its investment portfolio without taking on excessive risks. SOURCE: Coronation Asset Management
