CSCS shareholders endorse N7.5bn dividend,  hail performance 

Shareholders of the Central Securities Clearing System (CSCS) Plc, have approved the payment of N7.5 billion dividend proposed by the Board of Directors for the financial year ended December 2023, translating to N1.50 per share.

The dividend payment represents 9.5% increase from N6.85 billion paid in the preceding year of 2022.

The shareholders, at the 30th AGM held in Lagos, also commended the Board and Management for the impressive results recorded despite the harsh operating environment, as it reported significant growth across key financial metrics.

The company achieved gross earnings of N19 billion, representing a 65.2% increase compared to N11.5 billion recorded in 2022. It recorded a profit before tax of N11.2 billion in 2023, an 84.2% increase from N6.1 billion in the previous year.

Commenting 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 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.

He stated: ‘‘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’’.

He added, “There have been some board changes since our 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.”

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’’.