CSCS Reports 24% Increase in PBT, Proposes N1.76 Dividend Per Share

Kayode  Tokede 

Central Securities Clearing System (CSCS) Plc has released its audited consolidated and separate financial statements for the year ended December 31, 2024, delivering a robust performance marked by double-digit growth in revenue and profitability.

Profit before tax closed 2024 at N13.8 billion, an increase of 24per cent compared to N11.2 billion in 2023, while total revenue moved to N26.1 billion in 2024, representing an increase of 37 per cent from N19.0 billion reported in  2023.

The impressive results were largely driven by a 62per cent year-on-year increase in fee-based income, which rose to N11.9 billion from N7.3 billion, fuelled by heightened capital market activity. Ancillary services also contributed strongly, growing 27per cent from N8.1 billion in 2023 to N10.3 billion, buoyed by optimized service delivery and increased customer engagement.

CSCS maintained a strong balance sheet, with total assets at N64.4 billion, about 22per cent increase from N52.8 billion in the previous year. 

Key financial ratios also improved, with return on average equity at 30per cent, return on average assets at 20per cent, and earnings per share increasing to 239 kobo from 202 kobo in 2023.

Commenting on the results, the Chairman of the Board of CSCS, Temi Popoola praised the performance amid a challenging economic climate. “Despite the macroeconomic headwinds of 2024, we delivered strong results across key financial and operational indicators. 

“Our strategy of consolidating our core offerings while expanding into new business areas enabled us to grow gross earnings by 37per cent, reaching N26.1 billion,” 

He added, “In light of this strong performance and our commitment to delivering long-term value to shareholders, the Board has proposed a dividend of N1.76 per share, amounting to a total payout of N8.8 billion.”

The Managing Director and Chief Executive Officer of CSCS, Haruna Jalo-Waziri emphasized the resilience and adaptability of CSCS’s business model. “Our 2024 performance highlights the sustainability of our revenue streams across both traditional and emerging segments. 

“We continue to diversify into new areas and leverage technology to enhance scale and capacity in line with our strategic objectives. Amidst economic challenges, we grew operating income by 44per cent to N22.2 billion, while maintaining a cost-to-income ratio of 47per cent, reflecting our focus on operational efficiency.”

CSCS remains committed to leveraging innovation and strategic execution to drive growth and sustain shareholder value in the years ahead.