Central Securities Pays N7.5bn Dividends To Shareholders As Gross Earnings Increase By 65.2% In 2023

Central Securities Pays N7.5bn Dividends To Shareholders As Gross Earnings Increase By 65.2% In 2023

3 weeks ago
3 mins read

Central Securities Clearing System (CSCS) Plc recorded an impressive performance in year ended December 31, 2023 across key financial metrics.

The company saw its Gross earnings increase by 65.2 per cent from N11.5 billion in 2022 to N19 billion in 2023, and its Profit Before Tax (PBT) rose by 84.2 per cent from N6.1 billion in 2022 to N11.2 billion in the year under review.

This was announced during the company’s 30th Annual General Meeting held on 24 May 2024 at Civic Centre, Victoria Island, Lagos.

As approved by the shareholders during the AGM, CSCS will pay a total dividend of N7.5 billion to them at N1.50 per person ordinary share, which is a significant increase from N6.85 billion paid out in the previous year. This highlights the company’s commitment to delivering increased value to its shareholders.

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The strong revenue growth recorded by the Company in 2023, as revealed in the annual report, reflected its strong performance and strategic initiatives throughout the year.

Speaking on the performance of the company, the Chairman of the Board of Directors, Mr. Temi Popoola stated, “Despite a very challenging business environment, our company achieved impressive financial results in 2023. Gross earnings stood at N19.0 billion, a 151.25% performance against budget and a 65.2% year-on-year increase (FY 2022: 11.5 billion). This was driven by strong growth in non-core revenue 249.3%, Transaction fees (88.3%) and Depository fees (21.3%). Electronic Document Management Services (EDMS) grew year-on-year by 34.7% to N985.8 million, Investment Income’s budget performance stood at 96.8% and was down 15.2% year-on-year.”

Expressing gratitude for his appointment as Chairman, Mr. Popoola acknowledged the dedicated Board members and exceptional Management team.

He extended appreciation to his predecessor, Mr. Oscar 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.

Central Securities Pays N7.5bn Dividends To Shareholders As Gross Earnings Increase By 65.2% In 2023
Members of the Central Securities Clearing System board during the AGM held on Friday, 24 May 2024 Civic Centre, Victoria Island, Lagos

Mr. Popoola further remarked, “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 organizational 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.”

He also noted that there were some changes in the company’s board since the last meeting in accordance with terms of appointment. “In this regard, I would like to report the retirements of Mr. Eric Idiahi, Ms. Tinuade Awe, Mr. Oluseyi Owoturo and Mrs. Tairat Tijani as directors of CSCS Plc. These individuals were integral members of our Board, contributing their expertise, insights, and unwavering dedication to the success of CSCS Plc. Their collective wisdom and guidance played a significant role in shaping the strategic direction and accomplishments of our company.”

Also commenting on the company’s performance, the Managing Director/Chief Executive Officer, Mr. Haruna Jalo-Waziri said, “The strong growth in earnings reflects efficiency gains from both asset utilization and service enhancement. We recognize the risk to earnings arising from competition, especially in our traditional business lines, albeit our philosophy of thinking of competition from the standpoint of deepening the market continues to pay-off, as it drives our ingenuity at unlocking new opportunities and growing the size of the market. Looking back, we have grown both top and bottom lines by 20% minimum regulatory requirement for our business, despite dividend payment during the year.”

Speaking about the company’s Strategy and Outlook, Mr. Jalo-Waziri stated, “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.”

CSCS is a Public Limited Company, with a diversified shareholder base, including the Nigerian Exchange Group (NGX), some of the largest banks in Nigeria, private equity firms, other corporate and individual shareholders. With over two decades of operation, serving as the Central Securities Depository for the Nigerian Capital Market, CSCS has been pivotal to the growth and transformation of the capital market, including its audacious full dematerialization of share certificates and the shortening of settlement cycle in the capital market.

It is licensed and regulated by the Securities and Exchange Commission (SEC)


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