CSCS profit after tax up 18.5% to ₦11.9bn in FY'24

The Central Securities Clearing System (CSCS) has reported a significant increase in its profit after tax for the 2024 financial year, with a rise of 18.5% to 11.9 billion naira. This growth was primarily driven by a surge in revenue, which increased by 37% to 26.1 billion naira. Peter Medunoye, the Chief Financial Officer of CSCS, highlighted that the substantial growth was fueled by a remarkable 62% year-on-year increase in fee-based income. Discussing the financial results, Medunoye emphasized that CSCS had achieved double-digit growth across key revenue lines in the 2024 financial year. The company's top line grew by 37% to reach 26.1 billion naira, demonstrating a robust performance. Operating income also experienced an extraordinary 44% year-on-year growth, highlighting the resilience of CSCS's business model and the sustainability of its revenue streams. Moreover, CSCS recorded a 24% year-on-year increase in profit before tax, reaching 13.8 billion naira. The company's total assets rose by 22% to 64.4 billion naira in the 2024 financial year, showcasing organic growth and a strong balance sheet. Additionally, CSCS boasts a robust shareholder base of 42.4 billion naira, reflecting an 11% year-on-year growth. Medunoye underlined CSCS's commitment to innovation and operational excellence to reinforce its traditional business while diversifying into new market segments. Over the past five years, new business areas have contributed significantly to the company's revenue, accounting for 39% of the total, up from 5% previously. By investing in operational efficiency and expanding product offerings, CSCS aims to enhance liquidity for investors and stakeholders. Looking ahead, Medunoye discussed the outlook for the capital market amidst global economic challenges. He noted that Nigeria's capital market showed resilience in the first quarter, with market capitalization increasing by 3.5 trillion naira and the share index rising by 2.66%. The positive outlook for the market is attributed to supportive government reforms and a favorable macroeconomic environment. While uncertainties such as tariff wars and potential recession threats persist, CSCS remains optimistic about the market's trajectory. Medunoye highlighted the positive impacts of sustained government reforms, particularly in the banking sector, while acknowledging potential negative implications from tariff wars on crude prices and exchange rates. In conclusion, CSCS's strong financial performance in the 2024 financial year underscores its growth trajectory and strategic focus on innovation and diversification. With a solid balance sheet and a resilient business model, CSCS is well-positioned to navigate market challenges and drive continued growth in the future.