CSCS Diversifies to Boost Earnings, Delivers Higher Value
The Central Securities Clearing System Plc (CSCS) is diversifying its business to broaden its stream of income and deliver better value to shareholders in the years ahead. The CSCS is a financial market infrastructure that undertakes the business of depository, clearing and settling of securities traded in the Nigerian capital market. However, the Chairman of the company, Mr. Oscar Onyema, yesterday told shareholders at the 23rd annual general meeting (AGM) in Lagos that having a solid foundation in the depository business with over two decades of experience at its disposal, the CSCS is replicating its business in the insurance industry.
“Consequently, our company has registered the Insurance Repository Nigeria Limited (IRNL) as a going concern and its business objective is to enhance the record-keeping of insurance data and policies. The Pension Contribution Management System (PCMS) is another one of CSCS firsts, which would be beneficial to both formal and informal businesses. The system is currently in use by our company and other companies that agreed to be part of our test participant forum to efficiently manage their employees’ pension contribution. The PCMS will be fully available to the market before the end of the third quarter of 2017,” Onyema said.
Speaking on the financial performance of CSCS in 2016, the chairman said gross earnings stood at N6.17 billion, down from N7.6 billion as a result of the poor performance of the capital market during the year under review. Profit after tax followed similarly downward trend, declining from N5.02 billion to N3.72 billion, while total assets improved from N25.4 billion in 2015 to N27.07 billion in 2016. The company proposed a final dividend of 21 kobo, which was approved by the shareholders. Looking ahead, Onyema said that the company remained focused on its commitment, excellent and sustainable business practice.
“As you may know, we are one of the highest rated Central securities depositories (CSDs) in Africa with an “A” rating from Thomas Murray, the world renowned CSD rating agency. We are working very hard to continue improving our rating and hope that this achievement will lend additional credence to the collective effort of making our markets the preferred investment destination in Africa,” he said.
In his comments, the Interim Chief Executive Officer of CSCS, Mr. Bola Adeeko, expressed confidence that the insurance repository service will provide immense value to documents administration in the insurance sector. According to him, the company has built strategic alliance with local and foreign stakeholders, disclosing that the company is on “the cusp of extending our service offerings to incipient markets under the aegis of the West Africa Capital Market Initiative (WACMI).”