Central Securities Clearing System Plc (CSCS) Achieves Robust Financial Performance in 2024
Central Securities Clearing System Plc (CSCS), the central securities depository for the Nigerian capital market, has announced impressive financial results for the fiscal year ending December 31, 2024. The company’s audited consolidated and separate financial statements reveal a 37% surge in revenue, reaching N26.1 billion compared to N19 billion in 2023. This remarkable growth underscores CSCS’s pivotal role in the Nigerian capital market’s evolution and its commitment to enhancing market efficiency. The company’s strategic initiatives, including full dematerialization of share certificates and shortening of settlement cycles, have contributed significantly to market modernization. Furthermore, its adaptability to the prevailing economic climate and focus on operational efficiency have propelled its financial performance.
At the heart of CSCS’s revenue growth lies a substantial 62% year-on-year increase in fee-based income, reaching N11.9 billion from N7.3 billion in 2023. This surge reflects the vibrancy of the Nigerian capital market and the increased trading activity that fueled demand for CSCS’s core services. Ancillary services also played a crucial role, expanding by 27% to N10.3 billion, driven by enhanced service delivery and heightened customer engagement. This diversification of revenue streams underscores the company’s strategic focus on broadening its service portfolio to cater to evolving market needs and capture emerging opportunities.
CSCS’s profitability also witnessed significant improvement, with profit before tax rising by 24% to N13.8 billion compared to N11.2 billion in the previous year. This increase in profitability demonstrates the effectiveness of CSCS’s operational strategies and its ability to translate revenue growth into bottom-line gains. The company’s focus on cost optimization, as evidenced by its cost-to-income ratio of 47%, contributed to its enhanced profitability despite the challenging economic landscape.
The company’s balance sheet remained robust, with total assets growing by 22% to N64.4 billion from N52.8 billion in 2023. This expansion in asset base reflects the company’s sound financial management and its commitment to reinvesting in its infrastructure and capabilities. The strong balance sheet provides a solid foundation for future growth and enables CSCS to pursue strategic initiatives that enhance its market leadership and deliver value to stakeholders.
Temi Popoola, Chairman of the Board of CSCS, commended the company’s performance, highlighting its resilience in navigating macroeconomic headwinds. He attributed the strong financial results to the successful execution of the company’s strategy focused on consolidating core offerings while exploring new business avenues. The Board’s proposal of a dividend of N1.76 per share, totaling N8.8 billion, underscores its confidence in the company’s future prospects and its commitment to rewarding shareholders.
Haruna Jalo-Waziri, Managing Director/Chief Executive Officer of CSCS, emphasized the adaptability and resilience of the company’s business model. He pointed to the diversified revenue streams, encompassing both traditional and emerging segments, as a key driver of the company’s success. The strategic emphasis on leveraging technology to enhance scale and capacity, coupled with operational efficiency, has enabled CSCS to deliver substantial growth in operating income (44% to N22.2 billion) while managing costs effectively. This commitment to innovation and strategic execution positions CSCS favorably for sustained growth and shareholder value creation in the years to come. The company’s vision for the future is anchored on its commitment to innovation and strategic execution, ensuring its continued contribution to the development of the Nigerian capital market.
