Nigerian insurance tycoon Wole Oshin’s Custodian posts $14.1 million profit in H1 2024

Omokolade Ajayi -

Key Points

  • Profit after tax surged 354% to N22.4 billion ($14.1 million) in H1 2024 from N4.93 billion last year.
  • Revenue grew significantly, with investment income up 84% to N33.5 billion ($20.8 million) and insurance service revenue increasing notably.
  • Custodian announced its first-ever interim dividend of N0.15 ($0.000093) per share, reflecting its strong financial performance.

Custodian Investment, a Lagos-based investment group led by Nigerian insurance tycoon Wole Oshin, reported a remarkable financial performance in the first half of 2024, with its profit surging above $14 million.

The group saw its profit after tax rise to N22.4 billion ($14.1 million) in the first half of 2024, up from N4.93 billion ($3.06 million) recorded in the same period in 2023. This 354.4 percent increase has been driven by robust revenue growth and strategic investments.

Revenue growth fuels profit surge

The company’s financial results reveal that Custodian Investment’s revenue for the first half of 2024 increased significantly, underpinned by a substantial rise in investment income and insurance service revenue.

Investment income for the period climbed to N33.5 billion ($20.8 million), up from N18.2 billion ($11.3 million) in H1 2023, representing an 84 percent increase. The major contributor to this was interest income, which surged by 63 percent to N15.3 billion ($9.5 million) from N9.4 billion ($5.83 million) in the previous year.

In addition, the group’s insurance service revenue recorded a significant boost, rising from N41.4 billion ($25.7 million) in H1 2023 to N60.96 billion ($37.9 million) in H1 2024. This growth was driven by strong performance across both its life and non-life insurance segments.

Strategic leadership and market influence

Founded in 1991 by Wole Oshin, who holds a 26.81 percent stake in the company, Custodian Investment has cemented its place as a key player in Nigeria’s financial sector.

Oshin’s leadership and vision have been instrumental in steering the company through challenging market conditions, ensuring steady growth and resilience.

His significant shareholding in Custodian Investment underscores his commitment to the group’s long-term success and its strategic positioning in the market.

Strong financial position and dividend declaration

Custodian Investment’s strong financial performance is further reflected in its balance sheet. As of June 30, 2024, the group’s total assets had grown to over $217 million, an increase from the previous year-end.

The group’s equity also saw a notable increase, reaching N100.01 billion ($62.1 million) from N81.46 billion ($50.6 million) as of Dec. 31, 2023. This surge in equity was largely fueled by a dramatic rise in retained earnings, which soared from N45.7 billion ($28.4 million) to N174.62 billion ($108.4 million) during the same period.

Given this robust financial position, Custodian Investment has declared its first-ever interim dividend of N0.15 ($0.000093) per share, marking a milestone in the company’s history.

Outlook

Custodian Investment’s impressive performance in the first half of 2024 reflects its strong operational capabilities and strategic investments across its core sectors.

As the group continues to enhance its service offerings and expand its market presence, it remains well-positioned to deliver sustained value to its shareholders and stakeholders.

With a focus on continuous innovation and operational excellence, Custodian Investment is poised for continued growth in the Nigerian financial landscape.