The board of Custodian Investment Plc, on Monday reported that the 2021 financial year was not altogether a good one, judging by the numbers delivered at the end of the period, showing a drop in net profit which was dragged down by an unholy combination of growth in operating expenses, underwriting and net claims expenses.
Gross revenue for the period jumped by N10.678bn or 18.37% from N75.062bn in the 2020 full-year ended December 31, to N85.74bn in the corresponding period of last year. Gross premium income for the period grew by about N8bn from N58.142bn to N66.228bn, while sales fell to N825.404m from N1.182bn in the corresponding period of 2020; a drop that could not be compensated for by the dividend income that almost doubled from N345.367m to N635.842m. Dividend income improved to N5.537bn from N4.988bn; fee and commission income soared to N914.316m from N216.942m; just as interest income increased to N11.599bn from N10.186bn; resulting in N52.553bn operating expenses, up by N10.63bn or 25.36% above the previous year’s N41.922bn.
Reinsurance expenses increased from N24.25bn to N25.346bn; underwriting expenses grew by N1.579bn or 33.16%, from N4.763bn to N6.342bn; just as net claims expenses jumped to N20.178bn from N14.331bn, representing a drop by N5.847bn or 40.8%. Cost of sales dropped from N1.422bn to N685.126m; changes in claims/annuity reserves improved significantly from a negative N32.798bn to a positive N4.827bn; just as management expenses increased from N7.023bn to N9.864bn.
Profit before tax dropped from N13.686bn to N12.322bn; income tax expenses rose significantly from N896.935m to N2.151bn; resulting in profit from continuing operation of N10.17bn, down from N12.789bn.
Comprehensive income net of tax fell by N3.071bn or 23.61% from N13.009bn to N9.938bn; translating to Earnings Per Share of N1.81, down from N1.94 in 2020, despite which the directors have offered a final dividend of 40 kobo per share, bringing total payout for the year to 50 kobo, down from 55 kobo. The dividend will be credited on April 8, to the bank accounts of shareholders whose names appear on the register at the close of business on March 25, subject to approval at the annual general meeting on the payment date.