By Kayode Ogunwale


L:R: Nonso Okpala, Non-Executive Director, CSCS PLC, Ibrahim Dikko, Independent Non-Executive Director, CSCS PLC, Dr. Aisha Muhammed-Oyebode, Independent Non-Executive Director, CSCS PLC, Haruna Jalo-Waziri, MD/CEO, CSCS PLC, Temi Popoola, Chairman, CSCS PLC, Chinelo Anohu, Independent Non-Executive Director, CSCS PLC, Adeyinka Shonekan, Executive Director, CSCS PLC, Bola Adesola, Independent Non-Executive Director, CSCS PLC & Samuel Onukwue, Non-Executive Director, CSCS PLC,At the 31st AGM of CSCS PLC

 

Shareholders of Central Securities Clearing System (CSCS) PLC have expressed their enthusiastic approval of the company’s strong financial performance for the year 2024. This commendation came during the 31st Annual General Meeting, which took place on Friday in Lagos.

Attendees highlighted key achievements, including significant revenue growth and improved operational efficiency, reflecting the firm’s strategic initiatives over the past year.

The atmosphere was charged with optimism as shareholders discussed future plans and potential innovations aimed at further enhancing the company’s position in the market.

A shareholder, Mr. Tunji Bamidele, took the opportunity to extend his heartfelt congratulations to the board Chairman and the management team of CSCS for their exemplary leadership throughout the year. Mr. Bamidele expressed his satisfaction with the company’s performance in 2024, highlighting that it showed a significant improvement compared to the results achieved in 2023.

However, he urged the board to continue striving for better performance metrics, emphasising the importance of enhancing shareholder value and ensuring a more substantial return on their investments.

In a similar vein, Mrs. Juliet Ebere praised the company’s robust performance, acknowledging the hard work and dedication demonstrated by the team in 2024.

She expressed her gratitude to the board for declaring an improved dividend of N1.76 kobo per share, which marked a positive step towards rewarding shareholders for their loyalty and support.

Additionally, Mr. Boniface Okezie commended the leadership of the board, particularly under the guidance of Mr. Temi Popoola, for their effective management and significant improvements over the fiscal year ending in 2024.

He made a constructive suggestion for the board and management to focus on reducing administrative expenses, reasoning that minimising these costs could lead to enhanced dividends for shareholders in the future, thereby increasing overall shareholder satisfaction and investment appeal.

In recognition of this strong performance, the board of directors declared a dividend of N1.76 per share, translating to N8 billion. The board said the distribution of the dividend reflects the ongoing commitment to delivering consistent returns to the shareholders while maintaining a balanced approach to reinvesting in long-term value creation.

Commenting on the performance of the company, Mr Temi Popoola, Chairman of the board of directors said despite a challenging operating environment, CSCS delivered a robust financial performance in 2024, underscoring the strength of the business model, strategic execution, and operational discipline.

He said, gross earnings of the company stood at N26.1 billion which represents a 37.2 per cent year-on-year growth and 156 per cent performance against budget driven by increased transaction volumes, product uptake, and a favourable interest rate environment that boosted investment income.

He stated that profit before tax of N13.84 billion surpasses budget expectations by 218.1 per cent, “our pre-tax earnings reflect strong topline growth, efficient operations, and gains from strategic cost management.”

“Profit after tax N11.94 billion Marking 243.9 per cent of budget, this outcome demonstrates our ability to convert revenue growth into strong bottom-line performance despite inflationary pressures and currency headwinds.”

Our financial strength in 2024 was underpinned by several factors, including higher capital market trading activity, favourable yields in the fixed income space, and foreign exchange gains. These were complemented by growing demand for our expanding portfolio of services and solutions, he said.

He stated that, operating expenses of CSCS increased by 41.3 per cent year-on-year, largely attributable to macroeconomic challenges, particularly persistent inflation and the depreciation of the naira, which significantly impacted foreign currency-denominated costs. Nevertheless, through disciplined cost management, we preserved healthy margins and sustained profitability, he stated.

In his comment, the Managing Director and Chief Executive of Officer of CSCS, Mr Haruna Jalo-Waziri said continuous pursuit of operational excellence of the company have successfully completed the design phase of its business process re-engineering initiative-marking a critical milestone in the efforts to drive efficiency and agility across the organisation.

“As we transition into the execution phase in the coming year, our focus will be on ensuring that ongoing initiatives deliver measurable impact and long-term value for our stakeholders. These efforts are not just about internal improvements-they are part of a broader strategy to strengthen our core market infrastructure and position CSCS for sustainable growth and diversification, Waziri said.

Looking ahead to 2025, Waziri said, the concluding year of the company 2021-2025 Strategic Plan-we reflect on a transformative journey that has firmly reinforced CSCS’s position as the backbone of Nigeria’s capital market.

“I am immensely proud of the progress we have made as an institution, and deeply grateful for the unwavering support of our valued stakeholders. As this strategic cycle draws to a close, we are already laying the groundwork for the next chapter of our growth and evolution.”