CSCS Posts N19bn Gross Earnings, Pays N7.5bn Dividend To Shareholders

The Central Securities Clearing System (CSCS) Plc recorded  gross earnings of N19 billion, representing a remarkable 65.2% increase in its 2023 financial year when compared to N11.5 billion it recorded in 2022. 

This is even as the organisation is paying a dividend of N1.50 kobo per share, translating to total dividend payment of N7.5billion in its 2023 financial year end, a notable increase from N6.85 billion paid in the previous year.

Additionally, the company realised a profit before tax of N11.2 billion in 2023, marking an impressive 84.2 per cent increase from N6.1 billion in the previous year.

Speaking at the company’s 30th annual general meeting (AGM), held in Victoria Island, Lagos, at the weekend, the chairman of CSCS, Mr. Temi Popoola added that, “transaction fees (88.3 per cent) and Depository fees (21.3 per cent). Electronic Document Management Services (EDMS) grew year-on-year by 34.7 per cent  to N985.8 million, Investment Income’s budget performance stood at 96.8% and was down 15.2 per cent year-on-year.”

Expressing gratitude for his appointment as chairman, Popoola acknowledged the dedicated board members and exceptional management team, appreciating  his predecessor, Mr. Oscar N. Onyema, for his distinguished leadership, which significantly contributed to CSCS’s growth and solidified its position as a reputable market infrastructure in Nigeria and West Africa.

Popoola further noted that, “It is with great enthusiasm that I joined the esteemed and diverse Board of CSCS, a body that has consistently exhibited effective and efficient leadership over the years. The board’s unwavering commitment to steering the strategic direction of our company and providing diligent oversight to Management has been pivotal in achieving our organisational goals. 

“I am particularly proud to note the board’s role in challenging the management team, which has undoubtedly contributed to our company’s stellar performance in 2023. Despite navigating a challenging business environment and socio-economic challenges in Nigeria, the Board and Management’s collective efforts have yielded commendable results.”

Also commenting on the company’s performance, the managing director/CEO, Mr. Haruna Jalo-Waziri said, the  strong growth in earnings reflects efficiency gains from both asset utilisation and service enhancement, recognising the risk to earnings arising from competition, especially, in its traditional business lines, albeit its  philosophy of thinking of competition from the standpoint of deepening the market continues to pay-off, as it drives ingenuity at unlocking new opportunities and growing the size of the market. 

Looking back, he said, CSCS has grown both top and bottom lines by 20 per cent minimum regulatory requirement for its  business, despite dividend payment during the year.

Speaking about the company’s Strategy and Outlook, Mr. Jalo-Waziri stated that, since the establishment of this institution, it has been a pivot for navigating complex changes in the market. 

“More importantly, over the past five years, we have demonstrated our capacity to lead and deliver on transformative changes. We are committed to working with other stakeholders in advancing critical changes to market structure and other initiatives for deepening financial markets. 

“Over the past five years, we have invested in transforming our operations from being not just an agile market utility but also a strategic support for the industry. As a financial market infrastructure, we will continue to play our role as a steward for financial market progress and more than ever, we are laser-focused on supporting investors’ capability to extract value from ensuing market volatility, which presents opportunities and risks. We would work with market intermediaries to cut through the chase of market complexities, lower costs and mitigate risks for investors,” he pointed out.

The Central Securities Clearing System (CSCS) is a Public Limited Company, with a diversified shareholder base, including the Nigerian Exchange Group, some of the largest banks in Nigeria, private equity firms, other corporate and individual shareholders.