CSCS Shareholders Commend N6.87bn Dividend Payout, 2022FY Performance

Kayode Tokede

Shareholders of Central Securities Clearing System Plc (CSCS), yesterday approved the management N6.87billion dividend payout, stressing the overall profit before tax and profit after tax growth of 10.9 per cent and 23.7 per cent Year-on-Year (YoY) growth respectively for 2022 financial year results.

The board had proposed a dividend of 87 kobo per share and a one-time special dividend of 50kobo per share from the retained earnings account as at December 31, 2022.

Speaking at the company’s 29^th Annual General Meeting (AGM) in Lagos, the National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, stated that the total dividend of N1.37 payout by the management is the highest in the history of the company despite headwinds, urging the parent company, Nigerian Exchange Group to emulate CSCS and declare dividend by 2023 financial year.

Commenting on CSCS 2022 performance, the Chairman Board of Director, CSCS, Mr. Oscar Onyema lauded the management in deepening the penetration of the company’s products & services offerings as reflected in the strong earnings from the non-core revenue which translates to 41.8 per cent growth.

According to Onyema, “The stellar performance of non-core revenue and strong growth in investment income buoyed the overall performance of the business despite relatively low activity level in the equity market that dampened our clearing and settlement income. Average Daily Transaction Value (ADTV) which was barely N3.2billion in the 2022 financial year compared to our expectation that market activity would improve with targeted ADTV of N5.1billion).

“Importantly, earnings from our flagship non-core offering Electronic Document Management Services (EDMS) continue to grow achieving 48.3 per cent year-on-year growth to N732million.

“This further reinforces management commitment to our diversification drive, as we see opportunities to leverage the firm’s resources and expertise in diversifying the business into new growth areas. More so, it provides a chance to further create value for our stakeholders within and beyond the capital market.”

He, however, assured shareholders of delivering superior and sustainable returns notwithstanding the challenging market environment.

In his remarks, the Managing Director/ Chief Executive Officer, CSCS, Mr. Haruna Jalo-Waziri said, “I am proud of what we have achieved, and I believe most stakeholders, if not all, are impressed by our performance over the years, especially when put in perspective the myriads of global and domestic challenges we have navigated.

“We continue to stay true to our promise of delivering value to our shareholders and indeed every stakeholder without indulging in the excuse of apparent intrigues in the operating environment.”

 He expressed that the management would continue to diversify the business to withstand the volatilities of the capital market and broadcasting the income base for sustainable growth.

Jalo-Waziri stated that the management would continue to create value for shareholders through exceptional services and innovative offerings.