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CSCS depository assets hit N23tr as shareholders okay N3.2b dividend

By Helen Oji
09 May 2022   |   2:40 am
The Central Security Clearing System (CSCS) grew its depository assets to N23 trillion in the 2021 financial year.

Managing Director/Chief Executive Officer,Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri, (left); Chairman, Board of Directors, CSCS Plc, Oscar N. Onyema and Company Secretary, CSCS, Charles I. Ojo, during CSCS 28th Annual General Meeting in<br />Lagos

The Central Security Clearing System (CSCS) grew its depository assets to N23 trillion in the 2021 financial year.

The Managing Director of the company, Haruna Jalo- Waziri, while addressing shareholders at the 28th yearly general meeting of the company held in Lagos, at the weekend, said though the clearing and settlement activity waned by 10.2 per cent to N99 trillion, the depository asset rose by 6.1 per cent, a reflection of growing confidence in the safety of the system.

Jalo-Waziri assured shareholders that the core revenue remained resilient in depository assets as the company continues to grow its depository assets, especially with new securities listings across the multiple exchange partners.

Also at the meeting, shareholders unanimously endorsed a total dividend of N3.7 billion, translating to an 83.7 per cent payout ratio for the 2021 financial year.

According to Jalo- Waziri, the N3.7 billion dividend reflects the resilience of the company, notwithstanding the impact of lower trading activity on most exchanges in the Nigerian capital market and inflationary pressures.

He said the company grew revenue from core operations and ancillary services by 39.2 per cent to N6.4 billion in 2021 up from N4.6 billion achieved in 2020, as it almost quadrupled earnings from ancillary services from N526 million in the 2020 financial year to N2.2 billion in 2021 financial year.

He told shareholders that income from ancillary services contributed 33.3 per cent and 21.5 per cent of operating revenue and total income for the year respectively, underpinning management’s strategy towards diversifying and strengthening the earnings of the company, with the ultimate objective of creating sustainable and superior wealth for shareholders.

Also speaking at the event, the Chairman of CSCS, Oscar Onyema assured shareholders that the earnings fundamentals of the company remained resilient and stronger, notwithstanding the volatile operating environment and moderated capital flows as reflected in the subdued capital market activities.

“The equity market recorded one of the weakest secondary market activities in the past few years, with the average daily traded value of N3.9 billion, some 10 per cent below the trading activity recorded in the 2020 financial year, explaining the tepid transaction fees.