CSCS Clears N4.327 Trillion Equities in Five Years

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By Goddy Egene

The Central Securities Clearing Systems (CSCS) Plc, has settled and cleared 495.65 billion equities valued at N4.327 trillion in the stock market in the past five years, statistics obtained by THISDAY has shown.

The CSCS is the clearing house of the Nigerian capital market that ensures all activities in the market are cleared, settled and investors get their value of the proceeds of transactions.

THISDAY checks revealed that between 2011 and 2015, CSCS cleared 495.65 billion worth N4.327 trillion. An analysis of the performance showed that the highest volume and value of shares cleared was in 2014 and 2013. A total of 108.47 billion shares valued at N1.338 trillion was settled and cleared in 2014, while 106.54 billion shares worth N1.043 trillion were recorded in 2013.

The year 2015 accounted for 92.86 billion shares valued at N653.43 billion, while 2012 and 2011 recorded 89.18 billion shares and 89.58 billion shares valued at N658.2 billion and N634.9 billion respectively were recorded.

CSCS  Plc recorded total operating income of N7.602 billion for the year ended December 31, 2015, down by 7.8 per cent, while total operating expenses rose by 4.2 per cent from N2.482 billion to N2.586 billion. Profit before tax stood at N5.016 billion, showing a decline of 13 per cent, compared with N5.759 billion in 2014. The company ended the year with profit after tax of N4.460 billion, which is marginal 3.5 per cent fall, compared with N4.622 billion in 2014. However, shareholders’ funds grew by 14 per cent from N20.581 billion to N23.818 billion, while total assets grew by 10.1 per cent from N23.073 billion to N25.402 billion. Based on the performance, the directors recommended a N1.336 billion, which translates to 26 kobo per share, which approved by the shareholders at the company’s annual general meeting recently.

The Chairman of CSCS Plc, Mr. Oscar Onyema told shareholders that  the company would build on the gains recorded in 2015 and move to stronger position this year and beyond.

Although the company made a lot of gains in 2015 despite the economic challenges recorded within the year, Onyema  said it would  build on these gains and move  to stronger position within its Sector.

He said: “We will continue to pursue achievement of our strategic goals. In 2016, our aim shall be to strengthen our management team to keep it competitive and focused on executing business strategy as it relates to our core businesses, whilst implementing new business initiatives that will guarantee our sustainability as a profitable enterprise.”

According to him, the company will continue to enhance its good governance practices as reflected in the various changes made at the Board level.  He added that CSCS  had introduced a new Committee structure in 2015 and as “we progress, we trust the new structure will ensure increased board effectiveness and continued compliance with the requirements of the Securities and Exchange Commission (SEC) code of corporate governance for public companies.”