Custodian Funding stories N52.74 billion revenue however misses forecast (2025 9 months)

Custodian Funding Plc recorded a modest 0.56% enhance in pre-tax revenue for the 9 months ended September 30, 2025, reaching N52.74 billion in comparison with N52.45 billion in the identical interval final 12 months.  

For the third quarter alone, the corporate posted a pre-tax revenue of N22.26 billion, down from N27.16 billion in Q3 2024 and N22.96 billion in Q2 2025.  

Regardless of the optimistic year-to-date revenue development, the corporate underperformed its earnings forecast, which projected N58.1 billion in pre-tax revenue and N175.8 billion in income.  

The precise income for the 9 months got here in barely decrease at N173.85 billion. 

Key Highlights 

• Income: N173.85 billion (Up 36.1% YoY from N127.72 billion) 
• Gross Revenue: Not explicitly said, however insurance coverage and funding revenue shaped a big a part of earnings 
• Working Bills: N138.61 billion (Up from N100.57 billion YoY) 
• Pre-tax Revenue: N52.74 billion (Up 0.56% YoY from N52.45 billion) 
• Earnings Per Share (EPS): 759 kobo (Up from 750 kobo YoY) 
• Whole Exterior Debt (Curiosity-bearing loans and borrowings): N1.24 billion (Down from N3.38 billion in Dec 2024) 
• Whole Belongings: N501.76 billion (Up from N407.29 billion in Dec 2024) 
• Money Steadiness: N57.68 billion (Up from N43.99 billion in Dec 2024) 

Driving the Numbers 

Income development was pushed primarily by will increase in insurance coverage service income, which rose to N121.71 billion from N92.09 billion YoY, alongside sturdy funding revenue and costs.  

• Segmental knowledge confirmed sturdy efficiency from curiosity revenue, which grew to N33.17 billion from N24.63 billion, and working and funding revenue, which surged to N18.96 billion from N11.01 billion.  
• Nonetheless, web reinsurance bills ballooned to N38.21 billion from N26.12 billion, and insurance coverage service bills additionally rose to N71.24 billion from N64.32 billion. 
• Finance prices remained negligible, however insurance coverage finance-related bills additionally contributed to the drag on earnings, with web insurance coverage finance bills growing to N22.68 billion from N7.33 billion.  
• Working effectivity took a success as administration bills climbed to N13.65 billion, in comparison with N12.22 billion within the earlier 12 months. 
• On the stability sheet, Custodian Funding Plc confirmed sturdy asset development, with whole belongings growing by over N94 billion year-to-date.  

The corporate additionally decreased its exterior borrowings considerably, and money reserves improved sharply, suggesting wholesome liquidity administration. 

Market Response 

Following the discharge of the Q3 2025 monetary outcomes, Custodian Funding Plc’s share value closed at N42.90, up 4.95% on the day.  

• The inventory has delivered a formidable 236% return over the previous one 12 months. Nonetheless, it ended the month of September at N43.00, which means it’s barely down month-to-date. 
• The corporate declared a dividend earlier within the 12 months however didn’t announce any new dividend with the Q3 outcomes.