The Central Securities Clearing System Plc (CSCS) has announced a profit after tax of N6.93 billion for the financial year ended Dec. 31, 2020.
The company in a statement explained that 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, 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,”he said.
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.