The Central Securities Clearing System Plc (CSCS) has announced a positive growth in its audited 2020 financial results despite unprecedented economic and financial market conditions occasioned by the COVID-19 pandemic.
In a statement the Group said its total income grew by 31.3% year-on-year (YoY) to N12.09 billion while profit after tax stood at N6.93 billion, indicating a 41.4% year-on-year growth, translating to N1.39 earnings per share. The Group also posted a 20.3% return on average equity for the 2020 financial year, compared to 15.3% in 2019.
Analysis of the financial report reveals that the CSCS recorded total Investment Income of N7.44 billion, an impressive 61.4% YoY growth, compared to N4.61 billion in 2019. Operating Expenses rose to N4.72 billion, compared to N3.23 billion in 2019 which is 46.0% growth, partly reflecting investments in technology and human capital. Profit Before Tax stood at N7.39 billion, a 22.3% YoY growth, compared to N6.04 billion in the previous year.
According to the statement, the Group made a Profit After Tax of N6.93 billion, compared to N4.90 billion in 2019 representing 41.4% growth while Return on Average Equity (ROAE) rose to 20.3%, compared to 15.3% the corresponding year. Earnings Per Share (EPS) also appreciated by 41.8% to 139 Kobo, compared to 98 Kobo in 2019.
Simillarly, Total Assets grew by 13.1% to N41.42 billion from N36.61 billion in 2019. Property, Plant and Equipment (plus intangibles) grew 25.0% YoY to N1.35 billion, reflecting continued investments in infrastructure to enhance operational efficiency and resilience while Shareholders’ Funds went up7.9% YoY to N35.49 billion, reflecting strong capacity for organic capital growth.
Speaking on the Group’s performance, the Chairman, Board of Directors of CSCS, Oscar Onyema said the Central Depository came out stronger despite the adverse headwinds. ” 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% in such a challenging year to deliver 20.3% return on average equity, the Board of Directors and Management are upbeat about the value accretion 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.