CSCS Reports 31.3% Revenue Growth, 41.4% Profit Rise To N6.93bn In 2020
Amidst unprecedented economic and financial market conditions occasioned by the COVID-19 pandemic, the Central Securities Clearing System (CSCS) has reported a 31.3 per cent growth in its total income to N12.09 billion and profit after tax of N6.93 billion representing a 41.4 per cent year-on-year growt.
The financial report showed N1.39 earnings per share, and 20.3 per cent return on average equity for the 2020 financial year, compared to 15.3 per cent in 2019 full year.
Commenting on the Group’s performance, Chairman, Board of Directors of CSCS, Mr Oscar Onyema said; It is exciting to report these stellar results. Defying the unprecedented challenges that characterised 2020 financial year, CSCS emerged stronger, delivering outstanding growth in top and bottom-lines, and executing far-reaching initiatives that would sustainably strengthen the competitiveness and resilience of the business. Having grown profit by over 41 per cent in such a challenging year to deliver 20.3 per cent return on average equity, the Board of Directors and Management are upbeat about the value accretive prospects of CSCS, and we are enthusiastic that the progress made thus far in repositioning the business to efficiently play a more active and leading role in deepening the Nigerian capital market will be sustained. With continuous investments in new technologies, talent, and work environment, we are optimistic on the productivity of CSCS going forward. Subject to shareholders’ approval at the upcoming annual general meeting, the Board is recommending a dividend of N 5.85 billion or dividend per share of N1.17, representing a growth of 36 per cent over the N0.86 dividend per share paid from the 2019 financial year earnings.”
Also the Chief Executive Officer, Mr Haruna Jalo-Waziri, saysthe performance of result reinforced the commitment of the company to deliver superior value shareholders, irrespective of the odds.
“These impressive results reflect our enhanced collaboration with different stakeholders and their unflinching support and loyalty to CSCS, as the core infrastructure for the Nigerian capital market. Hence, my colleagues and I are excited to dedicate this performance to our esteemed participants, regulator and the Board of Directors, whose support kept us stronger through the pandemic. We would continue to invest in our collective objective of deepening the capital market and broader financial system, even as we seek new and efficient ways of enhancing our partnerships for mutual prosperity. Having laid a solid foundation over the past three years, we are more than ever optimistic on the prospect of our business, especially as we diversify the business for enhanced resilience against macro and market volatilities. We will sustain our disciplined cost efficiency culture, in our commitment to delivering sustainable value to shareholders over the long term. We are excited at the 39.0 per cent cost-to-income ratio, despite the impact of exchange rate volatilities and rising headline inflation on our cost base. The years ahead look challenging, albeit more promising than ever, as we reinforce our commitment to leveraging best-in-class technologies and our continuous investments in human capital in delivering value to all stakeholders.”
According to the Chief Financial Officer, Mr. Peter Medunoye the firm recorded impressive double-digit growth in revenue and profitability, and more importantly recorded continuous improvement across all key performance indicators.
” We recorded decent growth in income from our CSD and ancillary services whilst also leveraging our ingenuity in effectively positioning the proprietary investment portfolio for growth. Delivering 17.7 per cent and 20.3 per cent return on average assets and return on average equity respectively, we are excited at the capacity of the business in generating internal capital to fund the exciting growth ahead”, he said
