CUSTODIAN INVESTMENT : QUARTER 2 - FINANCIAL STATEMENT FOR 2022

CONSOLIDATED FINANCIAL REPORTS

FOR THE HALF YEAR ENDED

30TH JUNE 2022

							Custodian Investment Plc
						Financial Reports (unaudited)
							30 June 2022
Consolidated and separate statement of financial position
As at 30 June 2022
				Group	Group	Company	Company
	In thousands of naira	Note	30-Jun-22	31-Dec-21	30-Jun-22	31-Dec-21
				Unaudited	Audited	Unaudited	Audited
	Assets
	Cash and cash equivalents	5		17,596,380	17,176,184	1,065,473	601,326
	Trade receivables	7		2,842,785	174,759	-	-
	Financial assets:	6		123,755,716	113,959,758	4,979,142	5,474,647
	- Fair value through profit or loss			72,809,184	68,536,913	556,189	1,101,825
	- Fair value through OCI			2,229,402	1,391,534	391,000	391,000
	- Debt securities at amortised cost			48,717,130	44,031,311	4,031,953	3,981,822
	Reinsurance assets	8		15,630,333	8,252,161	-	-
	Inventories	9		5,508,344	6,084,508	-	-
	Deferred acquisition costs	10		1,663,490	784,693	-	-
	Other receivables and prepayments	11		6,077,609	6,022,573	2,836,445	1,904,939
	Right-of-use-assets	20		54,755	69,862	-	-
	Investment in subsidiaries	12		-	-	15,373,012	15,373,012
	Investments in joint ventures	14		130,392	130,393	-	-
	Investment in associates	13		3,897,037	4,801,675	525,364	525,364
	Investment properties	15		11,775,023	11,760,655	7,081,066	7,081,066
	Assets of disposal group classified as
	held for sale	16		8,083,946	8,086,683	-	-
	Property, plant and equipment	18		4,583,330	4,696,005	220,786	94,548
	Intangible assets	17		141,716	172,486	20,943	25,132
	Statutory deposits	19		2,382,008	2,299,144	-	-
	Total assets			204,122,864	184,471,539	32,102,231	31,080,034
	Liabilities and equity
	Liabilities
	Insurance contract liabilities	21		104,998,314	85,036,841	-	-
	Investment contract liabilities	22		8,279,560	8,616,191	-	-
	Interest bearing Loans and Borrowings	23		2,516,509	2,516,621
	Trade payables	24		6,712,847	8,618,956	-	-
	Liabilities of disposal group classified as
	held for sale/distribution to owners	25		1,226,051	1,187,895	-	-
	Other payables	26		9,652,394	10,159,372	1,311,413	1,258,315
	Current income tax payable	27		2,207,504	1,941,504	1,021,171	657,323
	Deferred tax liabilities	28		2,134,373	2,134,377	624,088	624,088
	Total liabilities			137,727,552	120,211,757	2,956,672	2,539,726
	Equity
	Issued share capital	29		2,940,933	2,940,933	2,940,933	2,940,933
	Share premium	30		6,412,357	6,412,357	6,412,357	6,412,357
	Retained earnings	31		33,505,247	31,613,718	19,792,269	19,187,018
	Contingency reserve	31		13,272,926	12,961,014	-	-
	Fair value reserves	31		429,205	504,196	-	-
	Revaluation reserve	31		685,081	685,081	-	-
	Equity attributable to owners of the parent	57,245,749	55,117,299	29,145,559	28,540,308
	Non-controlling interests			9,149,563	9,142,483	-	-
	Total equity			66,395,312	64,259,782	29,145,559	28,540,308
	Total equity and liabilities			204,122,864	184,471,539	32,102,231	31,080,034

The accounts were approved by the Board of directors on 29 July 2022 and signed on its behalf by:

Dr. (Mrs.) Omobola Johnson		Wole Oshin		Ademola Ajuwon
Chairman		Managing Director	Chief Financial Officer
FRC/2018/IODN/00000018366	FRC/2013/CIIN/00000003054	FRC/2013/ICAN/00000002068

2

Custodian Investment Plc

Financial Reports (unaudited)

30 June 2022

Consolidated and separate statements of profit or loss and other comprehensive income

For the period ended 30 June 2022

		Group	Group	Group	Group	Company	Company	Company	Company
		Q2 ended	Q2 ended	Year to date	Year to date	Q2 ended	Q2 ended	Year to date	Year to date
In thousands of naira	Note	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
Gross Revenue		25,113,101	22,873,279	48,497,997	42,188,105	2,574,830	3,349,847	4,094,969	4,615,782
Interest income	33	3,359,006	2,867,838	6,908,800	5,330,897	16,241	166,736	38,872	197,322
Operating and Investment Income	32	21,754,095	20,005,442	41,589,197	36,857,208	2,558,589	3,183,111	4,056,097	4,418,460
Operating Expenses	34	(14,537,116)	(11,962,429)	(27,253,172)	(23,241,621)	-	-	-	-
Change in Provision for Outstanding Claims and
Life Fund Estimate	34(iii)	(3,119,756)	(1,633,618)	(9,814,634)	10,588,495	-	-	-	-
Net income		7,456,229	9,277,232	11,430,191	29,534,979	2,574,830	3,349,847	4,094,969	4,615,782
Net fair value losses	35	(2,584,727)	(3,475,198)	(1,432,972)	(22,101,453)	(29,328)	(44,148)	(120,715)	(97,105)
Net realised gains	36	1,329,781	703,950	1,821,626	3,179,137	25,950	490	28,515	490
Impairment allowance	38	-	140,462	(19,671)	(101,248)	-	(75,000)	-	(450,000)
Finance costs	39	(40,124)	(171,868)	(93,845)	(368,059)	-	-	-	-
Management expenses	37	(2,495,224)	(2,377,665)	(4,873,731)	(4,493,236)	(314,426)	(241,780)	(666,918)	(646,654)
Share of result of associates	13	(385,452)	-	(758,477)	-			-	-
Profit before taxation		3,280,483	4,096,913	6,073,121	5,650,120	2,257,026	2,989,409	3,335,851	3,422,513
Income tax expenses	27	(724,754)	(550,441)	(1,322,260)	(987,411)	(240,854)	(388,983)	(377,854)	(421,983)
Profit from continuing operation		2,555,729	3,546,472	4,750,861	4,662,709	2,016,172	2,600,426	2,957,997	3,000,530
Discontinued operations
Loss from discontinued operation	41	(19,559)	(39,454)	(28,287)	(29,316)	-	-	-	-
Profit for the period		2,536,170	3,507,018	4,722,574	4,633,393	2,016,172	2,600,426	2,957,997	3,000,530
Other comprehensive income (OCI):
Items that will not be reclassified to profit or loss
Equity-accounted investee -share of OCI	13	(6,818)	-	(6,818)	-			-	-
Net gain/(loss) on equity instrument at FVOCI	40	1,990	(91,589)	(133,545)	(75,126)	-	-	-	-
Other comprehensive income for the period net
of tax		(4,828)	(91,589)	(140,363)	(75,126)			-	-
Total comprehensive income for the period		2,531,342	3,415,430	4,582,211	4,558,267	2,016,172	2,600,426	2,957,997	3,000,530
Profit for the period attributable to:
- Owners of the parent		2,489,382	3,552,438	4,556,187	4,799,625	2,016,172	2,600,426	2,957,997	3,000,530
- Non-controlling interests		46,788	(45,420)	166,387	(166,232)	-	-	-	-
		2,536,170	3,507,018	4,722,574	4,633,393	2,016,172	2,600,426	2,957,997	3,000,530
Total comprehensive income attributable to:
- Owners of the parent		2,396,136	3,409,088	4,447,005	4,666,200	2,016,172	2,600,426	2,957,997	3,000,530
- Non-controlling interests		135,206	6,342	135,206	(107,933)			-	-
		2,531,342	3,415,430	4,582,211	4,558,267	2,016,172	2,600,426	2,957,997	3,000,530
Earnings/(loss) per share:
From continuing operations
Basic/diluted earnings per share (kobo)	42	43	61	78	82	34	44	50	51
From continuing and discontinued operations
Basic/diluted earnings per share (kobo)	42	43	60	78	82	34	44	50	51

3

Custodian Investment Plc

Consolidated and separate statement of changes in equity														Financial Reports (unaudited)
															30 June 2022
For the period ended 30 June 2022
	Group						Attributable to owners of the Parent
		Issued share		Share	Retained				Revaluation	Other	Fair Value				Non-controlling
	In thousands of naira	capital		premium	earnings		Contingency	reserve	Reserve	Reserve	Reserve		Total		interests	Total equity
	At 1 January 2022	2,940,933	6,412,357	31,613,718	12,961,014	685,081	-	504,196	55,117,299	9,142,483	64,259,782
	Profit for the period	-	-	4,556,187			-	-		-	4,556,187	166,387	4,722,574
	Other comprehensive income		-	-			-	-		(74,991)	(74,991)	(65,372)	(140,363)
	Transfer between reserves	-	-	(311,912)			311,912	-	-	-	-	-	-
		2,940,933	6,412,357	35,857,993	13,272,926	685,081	-	429,205	59,598,495	9,243,498	68,841,993
	Dividend Paid	-	-	(2,352,746)			-	-		-	(2,352,746)	(93,935)	(2,446,681)
	At 30 June 2022	2,940,933	6,412,357	33,505,247	13,272,926	685,081	-	429,205	57,245,749	9,149,563	66,395,312
	At 1 January 2021	2,940,933	6,412,357	25,379,762	11,679,092	698,693		538,075	47,648,912	9,857,472	57,506,384
	Profit for the period	-	-	4,799,625			-			-		4,799,625	(166,232)	4,633,393
	Other comprehensive income				-			-	(97,444)		12,512	(84,932)	9,806	(75,126)
	Share of profit	-	-	-			-	-		-	-			-
	Indirect NCI	-										-	-	-
	Transfer between reserves	-	-	(1,028,007)	1,028,007				-			-
		2,940,933		6,412,357	29,151,380		12,707,099	601,249		550,587		52,363,605		9,701,046	62,064,651
	Dividend Paid				(2,646,839)			-				(2,646,839)	(110,079)	(2,756,918)
	At 30 June 2021	2,940,933		6,412,357	26,504,541		12,707,099	601,249		550,587		49,716,766		9,590,967	59,307,733
	Company					Attributable to owners of the Company
		Issued share		Share	Retained				Revaluation		Fair value
	In thousands of naira	capital		premium	earnings		Contingency	reserve	Reserve		reserve		Total
	At 1 January 2022	2,940,933	6,412,357	19,187,018			-	-		-	28,540,308
	Profit for the period	-	-	2,957,997			-	-		-	2,957,997
	Dividend Paid	-	-	(2,352,746)			-	-		-	(2,352,746)
	At 30 June 2022	2,940,933	6,412,357	19,792,269			-	-		-	29,145,559
	At 1 January 2021	2,940,933	6,412,357	15,844,282			-	-		-	25,197,572
		2,940,933	6,412,357	15,844,282			-	-		-	25,197,572
	Profit or loss for the period	-	-	3,000,530			-	-		-	3,000,530
	Dividend Paid				(2,646,839)							(2,646,839)
	At 30 June 2021	2,940,933	6,412,357	16,197,973			-	-		-	25,551,263

4

							Custodian Investment Plc
							Financial Reports (unaudited)
								30 June 2022
Consolidated and separate statement of cash flows
For the period ended 30 June 2022
				Group	Group	Company	Company
	In thousands of naira	Note		30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21
	Cash flows from operating activities
	Profit/(loss) before taxation			6,073,121	5,650,120	3,335,851	3,422,513
	Adjustments for non-cash items:
	- Fair value (gain)/loss		35	1,259,939	22,678,459	120,643	97,105
	- Depreciation		18	269,269	237,467	30,814	18,743
	- Deprecition on right-of-use assets		20	20,759	31,659	-	-
	- Impairment charge		38	19,671	101,248	-	450,000
	- Amortisation of intangible assets and deferred expense		17	47,783	42,892	4,189	-
	- Profit on disposal of property, plant and equipment			(5,875)	(11,598)	(1,200)	-
	- (Gain)/loss on disposal equities & other investment		36	(1,322,179)	(2,487,982)	(27,315)	-
	- Exchange rate differential			173,033	1,008,470	72	(490)
	- Share of result of associate		13	758,477	-	-	-
	- Dividend income			(568,201)	(387,860)	(3,189,583)	(3,683,417)
	- Interest income			(504,550)	(396,965)	(14,303)	(163,806)
	- Investment income			(6,404,250)	(4,933,932)	(24,569)	(33,516)
	- Net gain/(losses) on fair value through OCI assets			74,991	12,512	-	-
	Changes in working capital:
	(Increase)/Decrease in reinsurance assets			(7,378,172)	(4,422,084)	-	-
	(Increase)/Decrease in other receivables and prepayment		(55,036)	218,396	(931,506)	(1,132,021)
	Decrease in trade receivables			(2,668,026)	(37,512)	-	-
	Increase/(Decrease) in deferred acquisition cost			(878,797)	(622,359)	-
	Increase/ (Decrease) in insurance contract liabilities			19,961,473	(4,829,074)	-	-
	Increase /(Decrease) in investment contract liabilities			(336,631)	958,037	-	-
	Increase / (Decrease) in other liablilities			(506,978)	1,286,971	53,100	18,483
	Increase / (Decrease) in trade payable			(1,906,109)	650,936	-	-
	Increase / (Decrease) in inventories			576,164	143,622	-	-
	Increase / (Decrease) in statutory deposit			(82,864)	(1,480,417)	-	-
	Increase / (Decrease) in borrowings			(112)	(2,753,556)	-	-
	Income tax paid			(1,056,260)	(1,268,362)	(14,006)	(359,775)
	Net cash provided/(utilised) by operating activities			5,560,640	9,389,088	(657,813)	(1,366,181)
	Cash flows from investing activities
	Purchase of property, plant and equipment		18	(305,130)	(420,052)	(157,054)	(24,522)
	Purchase of ROU asset		20	(15,094)	(27,325)	-	-
	Proceeds on disposal of property, plant and equipment			6,027	21,442	1,200	-
	Purchase of intangible			(24,437)	(36,329)	-	-
	Net (Purchase)/redemption to investments (financial assets)		(9,653,851)	(12,483,109)	402,177	(939,930)
	Purchase of investment in associate/subsidiary		12	-	-	-	(100,000)
	Purchase of investment properties		15	(5,247)	(1,829)	-	-
	Dividend received			568,201	387,860	3,189,583	3,683,417
	Investment income received			6,908,800	5,330,897	38,872	197,322
	Net cash provided/(used) in investing activities			(2,520,730)	(7,228,445)	3,474,778	2,816,287
	Cash flows from financing activities
	Fair value of loan from equity holders			-	-	-	-
	Dividend Paid during the period			(2,446,681)	(2,756,918)	(2,352,746)	(2,646,839)
				(2,446,681)	(2,756,918)	(2,352,746)	(2,646,839)
	Net increase/(decrease) in cash and cash equivalents			593,229	(596,275)	464,219	(1,196,733)
	Cash and cash equivalents at begining of the year			17,176,184	13,743,138	601,326	1,654,286
	Effect of change in exchange rate			(173,033)	(1,008,470)	(72)	31,443
	Cash and cash equivalents at end of the period			17,596,380	12,138,393	1,065,473	488,996

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