Economy
CSCS Assures Shareholders Sustainable Value, to Pay N1.17 Dividend
By Adedapo Adesanya
Shareholders of Central Securities Clearing Systems (CSCS) Plc have been assured sustainable value as the company saw its profit after tax grow year-on-year by 41.4 per cent to N6.9 billion in the year 2020.
In the audited financial results of the firm released recently, the group improved its profit before tax by 22.3 per cent y-o-y to N7.4 billion from the N6.0 billion recorded in 2019, while the total income went up by 31.3 per cent year-on-year to N12.1 billion compared to N9.2 billion in 2019, with investment income growing by 61.4 per cent to N7.4 billion from N4.6 per cent in the preceding year.
The company also recorded an operating expense of N4.7 billion compared to N3.2 billion, this indicated a year-on-year growth of 46.0 per cent partly, reflecting investments in technology and human capital.
Return on Average Equity (ROAE) grew by 20.3 per cent compared to 15.3 per cent in 2019 while Earnings Per Share (EPS) grew to N1.39 from 98 Kobo in 2019, indicating a 41.8 per cent year-on-year growth.
The group delivered a 20.3 per cent return on average equity for the 2020 financial year, compared to 15.3 per cent in 2019.
According to the statement, total assets grew to N41.4 billion compared to N36.6 billion as at 2019, showing that there was a 13.1 per cent year-on-year growth.
Property, Plant and Equipment (plus intangibles) grew 25.0 per cent in the year under review to N1.4 billion, reflecting continued investments in infrastructure to enhance operational efficiency and resilience.
Equally, shareholders’ funds rose to N35.5 billion, up 7.9 per cent between the period under review, reflecting strong capacity for organic capital growth.
Commenting on the group’s performance, Mr Oscar Onyema, the Chairman, Board of Directors of CSCS, said, “It is exciting to report these stellar results.
“Defying the unprecedented challenges that characterised 2020 financial year, CSCS emerged stronger, delivering outstanding growth in top and bottom-lines, and executing far-reaching initiatives that would sustainably strengthen the competitiveness and resilience of the business.
“Having grown profit by over 41.4 per cent in such a challenging year to deliver 20.3 per cent return on average equity, the board of directors and management are upbeat about the value-accretive prospects of CSCS and we are enthusiastic that the progress made thus far in repositioning the business to efficiently play a more active and leading role in deepening the Nigerian capital market will be sustained.
“With continuous investments in new technologies, talent, and work environment, we are optimistic on the productivity of CSCS going forward.
“Subject to shareholders’ approval at the upcoming annual general meeting (AGM), the board is recommending a dividend of N5.85 billion or dividend per share of N1.17, representing a growth of 36 per cent over the 86 kobo dividend per share paid from the 2019 financial year earnings.”
While commenting on the Group’s results, Mr Haruna Jalo-Waziri, the Chief Executive Officer, said; “Amidst the COVID-19 twin threat to lives and livelihoods, and more importantly the attendant challenges in an economic and business environment, we outperformed budget, reinforcing our commitment to delivering superior value to our shareholders irrespective of the odds.
“These impressive results reflect our enhanced collaboration with different stakeholders and their unflinching support and loyalty to CSCS, as the core infrastructure for the Nigerian capital market.
“Hence, my colleagues and I are excited to dedicate this performance to our esteemed participants, regulator and the Board of Directors, whose support kept us stronger through the pandemic.
“We would continue to invest in our collective objective of deepening the capital market and broader financial system, even as we seek new and efficient ways of enhancing our partnerships for mutual prosperity.
“Having laid a solid foundation over the past three years, we are more than ever-optimistic on the prospect of our business, especially as we diversify the business for enhanced resilience against macro and market volatilities. We will sustain our disciplined cost-efficiency culture, in our commitment to delivering sustainable value to shareholders over the long term.
“We are excited at the 39.0 per cent cost-to-income ratio, despite the impact of exchange rate volatilities and rising headline inflation on our cost base. The years ahead look challenging, albeit more promising than ever, as we reinforce our commitment to leveraging best-in-class technologies and our continuous investments in human capital in delivering value to all stakeholders.”
Also commenting on CSCS’ financial performance, the Chief Financial Officer, Mr Peter Medunoye noted “We recorded impressive double-digit growth in revenue and profitability, and more importantly recorded continuous improvement across all key performance indicators.
“We recorded decent growth in income from our CSD and ancillary services whilst also leveraging our ingenuity in effectively positioning the proprietary investment portfolio for growth.
“Delivering 17.7 per cent and 20.3 per cent return on average assets and return on average equity respectively, we are excited at the capacity of the business in generating internal capital to fund the exciting growth ahead.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, February 11, by N2.07 or 0.15 per cent to N1,348.95/$1 from N1,351.02/$1 as the Central Bank of Nigeria (CBN) moved to further ease shortages and narrow the gap between the official and street rates.
The CBN approved the participation of licensed Bureaux De Change (BDC) operators in the Nigerian Foreign Exchange Market (NFEM) as part of efforts to improve forex liquidity in the retail segment of the market and meet the legitimate needs of end users.
The apex bank capped the weekly FX purchases at $150,000, adding that utilisation complies with existing BDC operational guidelines.
In the same official market, the Nigerian currency gained N6.46 against the Pound Sterling to quote at N1,840.11/£1 versus N1,846.57/£1, and added N6.36 on the Euro to close at N1,600.13/€1, in contrast to the preceding session’s N1,606.49/€1.
At the GTBank FX counter, the Nigerian Naira gained N5 on the greenback to settle at N1,358/$1 versus the previous day’s N1,363/$1, but remained unchanged at N1,430/$1 in the black market.
Meanwhile, the digital currency market was bearish yesterday as traders sold their positions after digesting a more hawkish macro outlook.
Analysts mainly attributed the latest crypto selloff to shifting expectations around US macro policy, following a “hawkish shift” in Federal Reserve expectations after Kevin Warsh’s nomination as chairman of the US central bank, which signals tighter liquidity and fewer rate cuts ahead.
Traders will be watching key US labour market data for signs on the future path of interest rates and broader risk appetite.
Solana (SOL) shed 3.2 per cent to sell at $79.86, Ethereum (ETH) depreciated by 2.7 per cent to $1,958.44, Bitcoin (BTC) dropped 1.5 per cent to $67,540.62, Cardano (ADA) slid 1.5 per cent to $0.2579, Ripple (XRP) dipped 1.4 per cent to $1.37, Binance Coin (BNB) slumped 1.2 per cent to $609.73, Litecoin (LTC) went down by 1.2 per cent to $52.58, and Dogecoin (DOGE) crashed by 1.1 per cent to $0.0917, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Dipo Olowookere
The positive momentum witnessed on the Nigerian Exchange (NGX) Limited lately continued on Wednesday after it further closed higher by 0.78 per cent.
More investors are showing interest in Nigerian stocks because of the recent bull run, leaving the market capitalisation to grow further by N880 billion yesterday to N114.377 trillion from N113.497 trillion, while the All-Share Index (ASI) increased by 1,374.93 points to 178,184.35 points from 176,809.42 points.
Though the level of activity waned at midweek, data showed that it remained high, with a turnover of 939.2 million shares worth N34.0 billion in 61,279 deals compared with the 1.3 billion shares valued at N50.4 billion traded in 58,965 deals in the preceding session.
This showed that the trading volume went down by 27.75 per cent, and the trading value shrank by 32.54 per cent, while the number of deals jumped 3.92 per cent.
The busiest equity on Wednesday was Tantalizers with the sale of 85.3 million units worth N498.8 million, Access Holdings transacted 61.4 million units for N1.5 billion, Chams exchanged 38.6 million units valued at N174.1 million, Japaul sold 38.2 million units worth N89.5 million, and Deap Capital sold 36.8 million units valued at N314.1 million.
Fortis Global Insurance, Consolidated Hallmark, Nestle Nigeria, and Meyer all gained 10.00 per cent each to close at 33 Kobo, N4.95, N2,420.00, and N20.90 apiece, and CAP rose by 9.98 per cent to N99.20.
On the flip side, Honeywell Flour declined by 9.70 per cent to N22.80, Neimeth slipped by 9.15 per cent to N12.90, The Initiates crashed by 5.81 per cent to N19.45, RT Briscoe tumbled by 5.70 per cent to N14.40, and Sterling Holdings depreciated by 5.56 per cent to N7.65.
At the close of business, 49 stocks ended on the gainers’ table and 31 stocks finished on the losers’ chart, showing a positive market breadth index and strong investor sentiment.
As for the performance of the bourse’s sectors, four of the five monitored by Business Post were in green, with the industrial goods down by 0.02 per cent due to profit-taking in Lafarge Africa.
The banking counter improved by 1.58 per cent, the insurance counter appreciated by 1.53 per cent, the consumer goods index gained 1.28 per cent, and the energy sector soared by 0.02 per cent.
By Adedapo Adesanya
Oil prices gained about 1 per cent on Wednesday, as investors worried about escalating tensions between Iran and the United States, which were preparing to resume negotiations.
Brent crude oil futures chalked up 60 cents or 0.87 per cent to sell for $69.40 a barrel, while the US West Texas Intermediate (WTI) crude oil futures appreciated by 67 cents or 1.05 per cent to $64.63 per barrel.
US President Donald Trump said nothing definitive was decided during his meeting with the Prime Minister of Israel, Mr Benjamin Netanyahu, on Wednesday, but that negotiations with Iran toward a deal would continue.
On Tuesday, the American leader said he was considering sending a second aircraft carrier to the Middle East if a deal is not reached with Iran, even as both oil producers are prepared to resume talks.
US and Iranian diplomats held indirect talks last week in Oman, amid a regional naval buildup by the US threatening Iran. The date and venue of the next round of talks have yet to be announced.
After talks between US and Iranian teams in Oman on February 6, the US government imposed additional sanctions on Iran’s oil sector.
Meanwhile, Iran signalled readiness for nuclear verification while denying any intent to build weapons.
Also supporting oil prices was data showing that US job growth unexpectedly accelerated in January and the unemployment rate fell to 4.3 per cent, signalling a healthy economy.
The Organisation of the Petroleum Exporting Countries (OPEC) left its oil supply-demand expectations largely unchanged in its monthly report, but highlighted that global oil demand for the wider group’s crude will drop by 400,000 barrels per day in the second quarter compared to the first.
The OPEC+ group, comprising OPEC nations, plus other allies, began raising output last year after years of cuts, but paused production hikes in the first quarter of 2026 amid predictions of a glut. Eight OPEC+ members meet on March 1, where they are expected to decide whether to resume the hikes in April.
Crude oil inventories in the US increased by 8.5 million barrels during the week ending February 6, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The increase brings commercial stockpiles to 428.8 million barrels according to government data.
EIA’s data release followed earlier figures released by the American Petroleum Institute (API), which suggested that crude oil inventories rose by 13.4 million barrels.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn