Shareholders of the Central Securities Clearing System (CSCS) at the weekend, approved a total dividend of N7.5 billion, culminating in N1.50 kobo per share due to every investor of the firm for the 2023 financial year.
Reviewing its performance at the yearly general meeting of the company held in Lagos, the Chairman of the company, Temi Popoola, said the firm achieved gross earnings of N19 billion, representing 65.2 per cent increase when compared to N11.5 billion recorded in the corresponding 2022.
Also, the company’s profit before tax rose to N11.2 billion representing 84.2 per cent increase over N6.1 billion posted in the previous year.
Popoola said the increase in gross earnings was occasioned by strong growth in non-core revenue 249.3 per cent, transaction fees (88.3 per cent) and depository fees (21.3 per cent).
He added that Electronic Document Management Services (EDMS) grew year-on-year by 34.7 per cent to N985.8 million while investment income’s budget performance stood at 96.8 per cent and was down 15.2 per cent year-on-year.
Expressing gratitude for his appointment as Chairman of the company, Popoola acknowledged the dedicated board members and exceptional management team. He extended appreciation to his predecessor, 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.
“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.”
Managing Director/Chief Executive Officer, Haruna Jalo-Waziri, said the strong growth in earnings reflects efficiency gains from both asset utilization and service enhancement.
“We recognise 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.
According to him, the company has grown both top and bottom lines by 20 per cent minimum regulatory requirement for the business, despite dividend payments during the year. He noted that the company has continued to navigate complex changes in the market as well as demonstrated a capacity to lead and deliver on transformative changes.
He said the firm is committed to working with other stakeholders in advancing critical changes to market structure and other initiatives for deepening financial markets.
Jalo-Waziri added that the institution has invested in transforming its operations from being not just an agile market utility but also a strategic support for the industry.
