CSCS shareholders approve N7.5bn total dividend for 2023
Lagos – Shareholders of the Central Securities Clearing System (CSCS) on Friday approved total dividend of N7.5 billion for the financial year ending Dec.31, 2023, as against N6.85 billion paid out in year 2022.
The approval made at the company’s 30th Annual General Meeting (AGM), held in Lagos, translated to a dividend of N1.50 per share.
The shareholders also commended the company for improving its bottom line in the year under review and paying dividends, while urging it to sustain the performance.
Commenting on the performance of the company, the Chairman, Board of Directors of the CSCS, Mr Temi Popoola said that in spite of the challenging business environment, the company achieved an impressive financial result in 2023.
Popoola noted that the significant growth across key financial metrics of the company highlighted its commitment to delivering increased value to its shareholders.
He said the CSCS reported impressive revenue growth in 2023, reflecting its strong performance and strategic initiatives throughout the year.
According to him, the company achieved gross earnings of N19 billion, representing a remarkable 65.2 per cent increase compared to N11.5 billion recorded in 2022.
The chairman said 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.
Popoola also disclosed that the company’s gross earnings for the year under review stood at N19.0 billion, a 151.25 per cent performance against budget and a 65.2 per cent year-on-year increase of N11.5 billion in the year 2022.
He noted that the performance was driven by 249.3 per cent growth in non-core revenue, adding that transaction fees were 88.3 per cent and Depository fees stood at 21.3 per cent.
According to him, Electronic Document Management Services (EDMS) grew year-on-year by 34.7 per cent to N985.8 million.
Popoola said that the company’s investment income’s budget performance stood at 96.8 per cent, representing a 15.2 per cent year-on-year decrease.
Having been newly appointed, Popoola acknowledged the dedicated Board members and exceptional Management team of the CSCS.
He appreciated his predecessor, Mr Oscar Onyema, for his leadership, which significantly contributed to the 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 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.
“In spite of navigating a challenging business environment and socio-economic challenges in Nigeria, the Board and Management’s collective efforts have yielded commendable results,” he said.
The chairman added that following the terms of the appointment, Mr Eric Idiahi, Ms Tinuade Awe, Mr Oluseyi Owoturo and Mrs Tairat Tijani have retired as directors of the CSCS.
Popoola noted that the individuals were integral members of the board and contributed their expertise, insights, and unwavering dedication to the success of the CSCS.
In his remark, the Managing Director, Mr Haruna Jalo-Waziri, said that the company’s strong growth in earnings reflected efficiency gains from both asset utilisation and service enhancement.
Jalo-Waziri noted that the CSCS had grown both top and bottom lines by 20 per cent minimum regulatory requirement for its business, in spite of dividend payments during the year.
The managing director explained that since the establishment of the institution, it had been a pivot for navigating complex changes in the market.
He added that over the past five years, the company had demonstrated its capacity to lead and deliver transformative changes.
“We are committed to working with other stakeholders in advancing critical changes to market structure and other initiatives for deepening financial markets.
“As a financial market infrastructure, we will continue to play our role as stewards for financial market progress.
“More than ever we are laser-focused on supporting investors’ capability to extract value from ensuing market volatility, which presents opportunities and risks.
“We will work with market intermediaries to cut through the chase of market complexities, lower costs and mitigate risks for investors,” he said.
The News Agency of Nigeria (NAN), reports that the CSCS is a public ltd. company, licensed and regulated by the Securities and Exchange Commission (SEC).
It has a diversified shareholder base, including the Nigerian Exchange Group, some of the largest banks in Nigeria, private equity firms, other corporate and individual shareholders.
With more than two decades of operation, serving as the Central Securities Depository for the Nigerian Capital Market, the CSCS has been pivotal to the growth and transformation of the capital market and contributed to the demutualisation of the NGX.
The company serves as the Central Depository for Equities, Commercial Papers, Corporate Bonds, Sub-National Bonds, and certain Sovereign Bonds, such as FGN Sukuk and FGN Savings Bonds.
Also, Equity-traded Funds, Real estate Investment Trusts, Mutual funds and Commodities.(NAN)(www.nannews.ng)
