By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE) – The Central Securities and Clearing System Plc (CSCS) Tuesday announced it has offered its shareholders a 15 Kobo dividend for the 2012 financial year end.
This is contained in a statement from the clearing house and obtained by InvestAdvocate in Lagos Nigeria.
In total, the CSCS declared a dividend of N750 million to its shareholders for the 2012 financial year compared to N500 million paid in year 2011 end; indicating an increase of 50 percent (50%) in the review period.
Oscar Onyema, the Chairman of the clearing and settlement house in his remark said the increase in its dividend was as a result of improved performance recorded by the company in the review period.
According to him, CSCS recorded a Profit Before Tax (PBT) of N3.06 billion in year 2012 end compared to N1.73 billion recorded in the same period of year 2011; indicating an increase in pre-tax profit of 77%.
Profit After Tax (PAT) grew from N1.0 billion in year 2011 to N2.58 billion in the review period of year 2012, representing a growth of 158%.
While Total Revenue increased to N5.17 billion in 2012 from N4.19 billion in 2011 end; showing an increase of 19%.
Onyema affirmed that apart from the growth in profitability, Total Assets also grew from N13.64 billion in 2011 end to N15.43 billon in 2012.
He further affirmed that in pursuit of its growth objectives, CSCS benchmarked its process and risks framework against the Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions (IOSCO) principles, which provide globally-acceptable standards for assessment of financial market infrastructure.
“The outcome of the exercise led to the establishment of an Enterprise Risk Management department and in year 2012, the CSCS included the provision of Over-the-Counter (OTC) services to its service offerings in respect of secondary market on shares of unquoted companies.
The Central Securities Clearing Systems recently signed a pact on OTC market with United Bank for Africa (UBA) Plc, Guaranty Trust Bank Plc (GTBank), Access Bank Plc and Sterling Bank Plc.
The banks were appointed by the National Association of Securities Dealers (NASD) on Monday, June 10, 2013 to act as clearing and depository for NASD trades and are scheduled to commence of operations in July this year.
On his part, Kyari Bukar, Managing Director/Chief Executive Officer, (MD/CEO) of the CSCS said the Clearing House sustained an ‘A’minus (A-) rating from Thomas Murray Rating Limited of United Kingdom (UK), a foremost Central Securities Depository rating agency.
Bukar disclosed that CSCS expanded its data Exchange Platform to include modules to cater for settlement banks, stockbroking firms, and custodians.
