Custodian Investment forecasts 58% rise in profit

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Custodian Investment Plc has projected a 58.2 per cent increase in profit after tax to N77.64bn for the financial year ending 31 December, 2026, from N49.41bn recorded in 2025.

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The forecast, contained in the company’s FY2026 fourth-quarter earnings projection, also showed that profit attributable to owners of the parent company is expected to rise to N75.58bn, compared with N48.78bn in the previous year.

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Custodian Investment expects gross revenue to climb to N312.64bn in 2026, representing a 77.8 per cent increase from N175.81bn in 2025.

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The company is also projecting profit before tax of N88.71bn, up 52.6 per cent from N58.13bn recorded in 2025.

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The projected earnings growth is supported by gains from financial assets, with net fair value gains expected to increase to N30.21bn from N9.72bn in 2025.

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The company also forecasts N5.15bn in net realised gains in 2026, compared with no realised gains reported in the corresponding 2025 figure.

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However, operating expenses are projected to more than double to N225.52bn from N110.82bn, while management expenses are expected to rise to N35.61bn from N16.36bn.

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Custodian Investment also expects to record N2.02bn as its share of the result of an equity-accounted investee, compared with nil in 2025.

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Finance costs are projected at N194m, slightly below the N214m recorded in the previous year.

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Tax provision is expected to rise to N11.07bn from N8.72bn, reflecting the higher projected earnings.

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Despite the expected improvement in profitability, the forecast indicates continued pressure on the company’s cash position as it ramps up investments.

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Net cash provided by operating activities is projected at N30.13bn in 2026, down from N36.10bn in 2025.

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The company expects to spend N124.75bn on the purchase of investments and financial assets during the year, significantly higher than the N88.48bn spent in 2025.

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This is expected to be partly offset by N25.72bn from the redemption of investments and N18.12bn in investment income received.

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Consequently, net cash used in investing activities is projected at N78.89bn, more than double the N36.52bn recorded in 2025.

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Financing activities are also expected to result in a net cash outflow of N16.43bn, compared with N8.21bn in the previous year.

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The company projects dividend payments of N16.18bn in 2026, up sharply from N7.94bn paid in 2025.

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Overall, Custodian Investment forecasts a net decline of N65.19bn in cash and cash equivalents during 2026, compared with a decline of N8.63bn in 2025.

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