By Chioma Obinagwam
Nigeria’s foremost depository, Central Securities Clearing System (CSCS) Plc, has said that it grew its Profit Before Tax (PBT) by 24% in the Financial Year (FY) ended December 31, 2024.
CSCS told Confiance News in a statement on Tuesday.
The foremost Depository noted that it delivered a robust performance marked by double-digit growth in revenue and profitability.
The statement disclosed that total revenue surged by 37% to N26.1 billion in 2024, up from N19.0 billion the previous year. Profit before tax also rose significantly, climbing 24% to N13.8 billion, compared to N11.2 billion in 2023.
The impressive results were largely driven by a 62% 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 27% 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 rising 22% to N64.4 billion from N52.8 billion in the previous year. Key financial ratios also improved, with return on average equity at 30%, return on average assets at 20%, and earnings per share increasing to 239 kobo from 202 kobo in 2023.
Temi Popoola, Chairman of the Board of CSCS, 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 37%, reaching N26.1 billion,”
Mr Popoola 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.”
Haruna Jalo-Waziri, Managing Director and Chief Executive Officer of CSCS 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 44% to N22.2 billion, while maintaining a cost-to-income ratio of 47%, reflecting our focus on operational efficiency.”
Confiance News learnt that CSCS remains committed to leveraging innovation and strategic execution to drive growth and sustain shareholder value in the years ahead.
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