CSCS grows revenue to N26.1bn

The revenue of Central Securities Clearing System Plc has risen by 37 per cent to N26.1bn in the 2024 financial year compared to N19bn in the previous year.

This was indicated in a statement on its audited consolidated and separate financial statements for the year ended December 31, 2024, issued on Tuesday.

CSCS is the Central Securities Depository for the Nigerian Capital Market and has been pivotal to the growth and transformation of the capital market, including its audacious full dematerialisation of share certificates and shortening of the settlement cycle in the capital market.

As its revenue grew in the period under review, its profit before tax also appreciated, rising by 24 per cent to N13.8bn, compared to N11.2bn in 2023.

The performance was largely driven by a 62 per cent year-on-year increase in fee-based income, which rose to N11.9bn from N7.3bn, fuelled by heightened capital market activity. Ancillary services also contributed strongly, growing 27 per cent from N8.1bn in 2023 to N10.3bn, buoyed by optimised service delivery and increased customer engagement.

CSCS’s balance sheet was strong as its assets rose by 22 per cent to N64.4bn from N52.8bn in the previous year.

Chairman of the Board of CSCS, Temi Popoola, praised the performance amid a challenging economic climate.

He said, “Despite the macroeconomic headwinds of 2024, we delivered strong results across key financial and operational indicators. Our strategy of consolidating our core offerings while expanding into new business areas enabled us to grow gross earnings by 37 per cent, reaching N26.1bn.

“In light of this strong performance and our commitment to delivering long-term value to shareholders, the Board has proposed a dividend of N1.76 per share, amounting to a total payout of N8.8bn.”

Managing Director/Chief Executive Officer of CSCS, Haruna Jalo-Waziri, emphasised the resilience and adaptability of CSCS’s business model, saying, “Our 2024 performance highlights the sustainability of our revenue streams across both traditional and emerging segments. We continue to diversify into new areas and leverage technology to enhance scale and capacity in line with our strategic objectives. Amidst economic challenges, we grew operating income by 44 per cent to N22.2bn, while maintaining a cost-to-income ratio of 47 per cent, reflecting our focus on operational efficiency.”

CSCS says it remains committed to leveraging innovation and strategic execution to drive growth and sustain shareholder value in the years ahead.