• Wednesday, June 12, 2024
businessday logo

BusinessDay

CSCS shareholders approve N7.5bn dividend payout

CSCS appoints Temi Popoola as Chairman

Central Securities Clearing System (CSCS) shareholders approved the payment of N7.5 billion final dividend payment of 150 kobo per share for the 2023 financial year.

The dividend approval was at the 30th Annual General Meeting (AGM) held Friday in Lagos.

Despite a very challenging business environment, CSCS achieved impressive financial results in 2023.

Gross earnings stood at N19.0 billion, a 151.25 percent performance against budget and a 65.2 percent year-over-year increase (FY 2022: 11.5billion).

This was driven by strong growth in non-core revenue (237.3 percent), Transaction fees (88.3 percent) and Depository fees (21.3 percent).

Electronic Document Management Services (EDMS) grew year-on-year by 34.7 percent to N985.8 million, Investment Income’s budget performance stood at 96.8 percent and was down 15.2.percenr year-on-year.

Non-core business’ contribution to Company’s total revenue grew to N7.8 billion and accounted for 41.1.percent of total revenue in 2023.

Overall, CSCS posted Profit Before Tax (PBT) and Profit After Tax (PAT) of N12.1 billion and N11 billion, representing 187.3 percent and 221.2 percent of budget performance, respectively.

Resultantly, return on equity grew to 30 percent (versus FY 2022: 15.1 percent) as both profitability metrics achieved year-on-year improvement of 97percent and 111.6percent respectively.

“Considering our exceptional financial performance and our unwavering commitment to creating value for our shareholders, the Board has proposed a dividend of 150 kobo per share. This results in a total dividend payout of N7.50 billion,” said Temi Poopola, chairman, CSCS.

Popoola said, “It is with great enthusiasm that I joined the esteemed and diverse Board of CSCS, a body that has consistently exhibited effective and efficient leadership over the years.”

He said the board’s unwavering commitment to steering the strategic direction of the company and providing diligent oversight to Management has been pivotal in achieving its organizational goals.

“I am particularly proud to note the Board’s role in challenging the Management team, which has

undoubtedly contributed to our company’s stellar performance in 2023. Despite navigating a challenging business environment and socio-economic challenges in Nigeria, the Board and Management’s collective efforts have yielded commendable results ” Popoola said.