CSCS grows gross earnings to N9.1 billion, maintains 70k/share dividend
Central Securities Clearing System (CSCS) Plc grew its gross earnings to N9.1 billion in 2018 from N8.7 billion in 2017 and declared a final dividend of 70k per share totaling N3.5 billion paid to shareholders pursuant to approval obtained at the companys 25th Annual General Meeting which took place in Lagos on Tuesday.
In his address to shareholders, the Chairman of the Board of Directors, Mr. Oscar Onyema, remarked that despite slow socio-economic developments and political agitations, the business performed well as reflected by its solid financial results.
According to Mr. Onyema, the gross earnings growth of N9.1 billion represented a four percent (4%) year on year growth. This earning was driven by decent revenue numbers from our core business and proper management of our investment portfolio. Income from other non-core services amounted to N260 million, up from N215 million thereby resulting in an increase of 17%. The reason for this increase is the fact that earlier in the year, the Board and Management had decided to engage more stakeholders on how to sustain the companys non-core services.
The Chairman further said that At the end of the year, Profit-Before-Tax stood at N6.09 billion in 2018 from N5.66 billion in 2017. Total assets stood at N35.85 billion in the year under review from N31.91 billion in 2017 representing an 12% growth Year on Year.
Mr. Onyema added that the Board of Directors would continue to stretch themselves to ensure that CSCS strategic objectives are met so as to achieve long term value creation for the ever-increasing shareholders and stakeholders.
Speaking on the year under review, the Managing Director/Chief Executive Officer, Mr. Haruna Jalo-Waziri said he was pleased to report CSCS continued positive revenue growth. He noted that the company had eked a modest 4% year on year increase in total operating income and 7% year on year growth in earnings before tax in the period.
According to Mr. Jalo-Waziri, the fee-based income grew by approximately 6.7% flowing from new securities listings which helped to buffer the slip in market valuations. Interest based income grew approximately by 1.3% in spite of the markedly lower yield environment as we improved treasury management to ride yield enhancement opportunities in the period.
Speaking further, the Chief Executive Officer said we were able to grow other income contribution by approximately 21% year over year as we have renewed our focus on asset and digital service offerings to diversify our earnings. We continue to see exciting growth potentials in these relatively untapped traditional CSD business lines with an eye on enhancing earning quality, improving income stability, and bolstering our business resilience into the future.”
The shareholders, while commenting on the 70k dividend payout, commended the Board and Management of CSCS for the impressive financial performance