Central Securities Clearing System (CSCS) Plc realized N7.284 billion from transaction and depository fees in the 2023 financial year ended 31 December 2023.
This was contained in the group’s 2023 annual financial report seen by Nairametrics.
The amount represents a 59.49% growth over N4.567 billion reported in 2022 by the group and also cumulatively accounts for 80.97% of the total revenue of N8.996 billion.
Key revenue drivers
Further checks show that the key driver of the group’s revenue in the 2023 financial year emanated from the transaction fees, accounting for N4.911 billion as against N2.609 reported in 2022 representing a growth of 88.23%. The segment contributed to 54.59% of the total revenue of N8.996 billion.
Also, Depository fees income followed by N2.373 billion an increase of 21.20% compared to the N1.958 billion generated the previous year, 2022. The income from the investment also contributed 26.38% of the total revenue achieved by the group.
Transaction fees or charges represent a basic cost of investing and they are typically charged anytime your bid or offer goes through. All charges are a percentage of the purchase or sales consideration.
Depository fees are fees received by the depositary of an investment fund for its depositary and custodian services.
Financial performance
Following shareholders’ approval at the AGM, CSCS Plc paid a total dividend of N7.5 billion to shareholders, an increase from N6.85 billion paid out in the previous year, translating to a dividend of N1.50 per share.
Speaking at the company’s 30th annual general meeting (AGM), held in Victoria Island, Lagos recently the chairman of CSCS, Mr. Temi Popoola noted Despite a very challenging business environment, the company achieved impressive financial results in 2023.
According to him, gross earnings stood at N19.0 billion, a 151.25% performance against budget and a 65.2% year-on-year increase (FY 2022: N11.5 billion).
“This was driven by strong growth in non-core revenue 249.3%, Transaction fees (88.3%), and Depository fees (21.3%).
Electronic Document Management Services (EDMS) grew year-on-year by 34.7% to N985.8 million, Investment Income’s budget performance stood at 96.8% and was down 15.2% year-on-year,” he said.
He added that the non-core business’ contribution to the company’s total revenue grew to N8.1 billion and accounted for 42.5% of total revenue in 2023.
According to him, overall, the company posted Profit Before Tax (PBT) and Profit After Tax (PAT) of N11.1 billion and N10.0 billion, representing 172.4% and 201.4% of budget performance, respectively. Resultantly, return on equity grew to 27.3% (vs FY 2022: 15.1%) as both profitability metrics achieved a year-on-year improvement of 84.2% and 96.2%, respectively.
Nigerian Exchange Group holds majority shares in CSCS with 2,209,102,292 units of shares as at December 31st 202, representing 44.18%. FMDQ Holdings Limited followed with 1,080,641,902 units of shareholdings, accounting for 21.61% as of December 2023.
CSCS closed the last trading day of Friday, June 21, 2024, at N20.00 per share on the NASD OTC Securities Exchange.
