CSCS

Shareholders of the Central Securities Clearing System (CSCS) at its 27th Annual General Meeting (AGM), approved N1.17 dividend per share payout to all qualified shareholders.

Mr Oscar Onyema, the Chairman of the Board of Directors, at the AGM held on May 18, hailed the company for its performance despite the challenges.

Onyema disclosed that following the approval of the shareholders on the N1.17 dividend per share proposed by the Board, CSCS would be paying out a total of N5.85billion to its shareholders.

He said that the company recorded some 36.0 per cent year-on-year growth in return to shareholders when compared to the N4.3 billion dividend paid in the previous year.

“Despite the challenges in 2020, 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.

“Growing 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 is more than ever upbeat on the value-accretive prospects of CSCS.

“More importantly, we are enthusiastic about the progress made thus far in repositioning the business, to efficiently play a more active and leading role in deepening the Nigerian capital market.

“With continuous investments in new technologies, talent and work environment, we expect productivity to grow, as the Board continues to work with the Management to exceed stakeholders’ expectations,” the Board Chairman said.

Managing Director/Chief Executive Officer, Mr Haruna Jalo-Waziri said: “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 strong 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 about the prospect of our business, especially as we diversify the business for enhanced resilience against macro and market volatilities.

“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,” Jalo-Waziri added.

The shareholders, most of whom participated through proxies due to the extant COVID-19 precautions, were excited at the performance of the company and unanimously approved the dividend proposal of N1.17 per share, as presented by the Chairman, on behalf of the Board of Directors.

Mr Eric Idiahi, one of the proxy attendees and Managing Director, Verod Capital LLC; a core shareholder of CSCS Plc, lauded the Management for the unprecedented performance in such a challenging year.

He reiterated the support of shareholders for the company, especially as the diversification of the business and culture of innovation should enhance the sustainability of the business and ensure its capacity to deliver superior returns to shareholders over the long term.

Mr Obong Idiong, the Chief Executive Officer of Africa Prudential Plc., the Registrar to CSCS said: “This is a well-conducted General Meeting, with due observance of all relevant statutory requirements, including COVID-19 precautions.

“I congratulate the Board and shareholders of CSCS on the impressive performance during the 2020 financial year and more importantly for a successful General Meeting,” he said.

CSCS has a diversified shareholder base, including Nigerian Exchange Group Plc., some of the largest Nigerian banks, private equity firms, other institutional investors and retail investors.

The shares are traded over-the-counter through the NASD-OTC, the premier market for trading unquoted securities of public limited companies.

As at the close of market on May 17, the bid/ask quotes on the shares of CSCS indicated a price of N17.65 per share, having rallied 17.3 per cent year-to-date, consolidating the strong performance of the share price over the past few years.

The Central Securities Clearing System (CSCS) Plc, Nigeria’s capital market infrastructure, has bagged the prestigious Market Choice award for outstanding counterparty trust assurance.

Mr Haruna Jalo-Waziri, the Chief Executive Officer of CSCS, said in a statement in Lagos that the CSCS was commended for its broad asset class coverage, enhanced collaboration with market participants and commitment to market efficiency and growth.

He added that the award was a call for continuous improvement and a boost to the CSCS tenacious commitment to delivering on market-efficiency initiatives.

“I would like to dedicate this award to our esteemed participants, whose loyalty, support and constructive feedbacks continue to enhance our operations and broader service to the Nigerian capital market.

“I would like to express my profound gratitude to our regulator, the Securities and Exchange Commission as well as the Board of Directors of CSCS for their diligent oversight and for ensuring sound governance which I believe is essential to every corporate’s sustainability and long-term value creation.

“I know the stakes are higher as we have set new benchmarks, albeit I am more than ever optimistic in our capacity to do more and work with our participants in delivering better experience and value to investors in the Nigerian capital market,” Jalo-Waziri added.

Previously known as the “Top CEOs and Next Bulls Awards,” had been jointly organised by BusinessDay and the Nigerian Exchange Limited (NGX) since 2015.

Tanko Mohammed

The Central Securities Clearing System (CSCS) has announced a profit after tax of N6.93 billion for the financial year ended Dec. 31, 2020.

The company said in a statement on Saturday the profit after tax was 41.43 per cent higher when compared with N4.90 billion posted in the corresponding period of 2019.

Also, profit before tax rose by 22.35 per cent to N7.39 billion from N6.04 billion achieved in the corresponding period of 2019.

Its total income stood at N12.09 billion from N9.21 billion in 2019, indicating an increase of 31.3 per cent.

The group total income grew by 31.27 per cent to N12.09 billion against N9.21 billion recorded in the comparative period of 2019.

The company’s investment income increased by 61.39 per cent to N7.44 billion in contrast with N4.61 billion in 2019 financial year.

The company’s operating expenses inched higher by 46.13 per cent to N4.72 billion from N3.23 billion in 2019, partly reflecting investments in technology and human capital.

The board also recommended a dividend of N5.85 billion, translating to N1.17 per cent, representing a growth of 36 per cent against 86k dividend per share paid in 2019.

Commenting on the group’s performance, Mr Oscar Onyema, the Chairman, Board of Directors of CSCS, said that the company defied the unprecedented challenges that characterised 2020 financial year.

“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,” Onyema said.

He said that the board of directors and management were upbeat about the value accretive prospects of CSCS with a profit growth of over 41 per cent.

“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.

Also, commenting on performance, Mr Haruna Jalo-Waziri, CSCS Chief Executive Officer, said that the result reinforced its commitment to delivering superior value to our 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 per cent cost-to-income ratio, despite the impact of exchange rate volatilities and rising headline inflation on our cost base,” Jalo-Waziri said.