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Custodian Investment’s Q1 profit falls to N1.86bn despite improved revenue



Custodian Investment posts 15% plunge in profit amidst rocketing operating expenses, declares N0.35 dividend

Custodian Investment Plc has reported a profit of N1.857 billion for First Quarter 2020, translating to a 3.69% fall compared to the corresponding period of last year.

The comprehensive account of the investment company in the period under review is detailed in its Consolidated Financial Statements for the Quarter Ended 31 March 2020, posted on the website of the Nigerian Stock Exchange (NSE) on Wednesday.

Gross Revenue grew by 20.1% from N14.886 billion at Q1 2019 to N17.874 billion in the same period of 2020.

Profit Before Tax shrank from N2.479 billion at Q1 2019 to N2.279 billion, representing an 8.07% decline.

Profit for the Period dipped by 3.69% from N1.928 billion to N1.857 billion.

Earnings Per Share (EPS) dropped from N0.32 to N0.31, signalling a 3.1% depreciation.

Custodian Investment’s underwhelming performance resulted from its increased spending on Operating Expenses and Management Expenses, which grew by N1.664 billion and N115.197 million respectively in between the periods.

Read also: COVID-19: Forget CBN palliatives! Here are 13 quick steps to jump-start Nigeria’s economy

Also contributing to this was the reversal in the firm’s Net Fair Value Gains from N473.208 million at Q1 2019 to a negative position of –N971.934 million at Q1 2020.

Total Equity inched up from N44.739 billion to N46.603 billion.

With outstanding shares of about 5.882 billion, Custodian Investment’s EPS is currently 0.98.

Its Price to Earnings (PE) ratio is 5.89 according to Bloomberg while its dividend yield is 7.83%.

The firm’s Return on Equity currently stands at 5.56.

Custodian Investment’s operations span general insurance, life insurance, trusteeship and pension fund administration.

The company closed trade on the floor of the NSE on Tuesday at N5.75 per share.

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