Capital Trust Brokers Limited was incorporated as a private limited liability Company on January, 10 1979 vide Certificate No. RC 5599.
The company is an off - shoot of CTB Stockbrokers (Nigeria) Limited which was abinitio a fully owned subsidiary of C.T. Borrowing & Co. (Nigeria) was originally a hundred percent (100%) expatriate Insurance Broking Company, having among its distinguished clients, the Federal Government of Nigeria.
In keeping with its commitment to ensuring strong and sustainable returns to its shareholders, the Board of the Central Securities Clearing System (CSCS) Plc has proposed a total dividend of N3.7Billion. Hence, reinforcing the value accretion to its equity owners, who have seen a notable rise in the company's share price over the past year. The dividend proposal, recently announced at the Company's 28th Annual General Meeting in Lagos, was unanimously approved by pleased shareholders, who commended the executive management for a solid performance, despite the challenging operating environment.
N3.7Billion dividend, which translates to an 83.7% payout ratio,
reflects the resilient profitability of the Company, notwithstanding the
impact of lower trading activity on most Exchanges in the Nigerian
capital market and inflationary pressures. Consolidating on its diligent
earnings diversification drive, the Company grew revenue from core
operations and ancillary services by 39.2% to N6.4Billion from
N4.6Billion in 2020. It almost quadrupled earnings from ancillary
services from N526million in the 2020 financial year to N2.2Billion in
the 2021 financial year. Notably, income from ancillary services
contributed 33.3% and 21.5% of operating revenue and total income for
the year, respectively, underpinning Management's strategy towards
diversifying and strengthening the earnings fundamentals of the Company,
with the ultimate objective of creating sustainable and superior wealth
for shareholders and its broader stakeholders.
Addressing shareholders, Mr. Oscar Onyema OON, Chairman, Board of Directors of CSCS Plc said, "Notwithstanding the volatile operating environment and moderated capital flows, as reflected in the subdued capital market activities, the earnings fundamentals of your Company remained resilient and indeed stronger than ever. This fact is evident in the impressive revenue growth of 39.2%, driven by stellar growth in ancillary income. The equity market recorded one of the weakest secondary market activities in the past few years, with the average daily traded value of N3.9billion, some 10% below the trading activity recorded in the 2020 financial year, explaining the tepid transaction fees. Albeit income from ancillary services recorded a significant boost, contributing N2.2billion or 21.5% of total income in 2021FY, from N526million or 11.3% of total income in 2020FY.
This performance reinforces the capacity of the Management in delivering on the Board's vision result of diversifying the business and enhancing the value accretion prospect to shareholders in a sustainable manner. More importantly, my colleagues and I on the Board of your Company are excited at the prospect of new offerings arising from strategic partnerships and new initiatives. In our oversight role, we are working with the Management to invest relevant resources towards exploring new frontiers for growth, especially as these initiatives are expected to foster retail investor penetration and broader capital market growth."
While commenting on the outlook for the business, the Chairman noted: "typical of a pre-election year, 2022 comes with its unique macro challenges, but I am optimistic on the earnings capacity and overall resilience of our business, as we hope to consolidate on the solid foundations and extract synergies opportunities with our participants and partners in sustaining the positive trajectory of the business. Hence, with the support of shareholders and other stakeholders, CSCS would continue to deliver superior performance and create wealth for shareholders.
the same vein, Mr. Haruna Jalo-Waziri, the Chief Executive Officer,
CSCS Plc, said, "Reflecting the ingenuity of our participants and, more
importantly, quick adoption of new remote access technologies, the
Nigerian capital market remained active through the prolonged COVID-19
crisis. The collaboration of our regulator and participants has been
incredible in sustaining our operational protocols and IOSCO PFMI
clearing and settlement activity waned by 10.2% due to lower
participation of foreign investors in the Nigerian equity market and a
host of macro challenges, we are excited at the growth in our depository
assets by 6.1% to
N23.0trillion, reflecting new listings of
securities across our multiple Exchange partners as well as issuers' and
investors' confidence in the safety and secured accessibility of our
Jalo-Waziri said: "Despite the average inflation rate of 17.0% during
the year, we sustained our cost-efficiency strategy, leading to a 1.6%
decline in operating expenses. Overall, we achieved
N5.8Billion and N4.4Billion
Profit Before Tax and Profit After Tax, respectively, underpinning the
resilience of the business and the commitment of my colleagues and me in
delivering on our pledge to create value for shareholders our broader
"It has been twenty-five years of meritorious service as the Nigerian capital market infrastructure. We have pioneered several initiatives and efficiencies in the market and have enjoyed the best collaborative engagements with different stakeholders. While we relish our progress working with other stakeholders in transforming the Nigerian capital market, we reckon there is a long way to go in bridging the gap towards our aspiration of positioning the Nigerian capital market as the hub of securities services in Africa and one of the leading capital markets, globally. To this end, we have reinvigorated our strategic thrust with the development of a medium-term playbook that would enhance our capabilities in executing new initiatives towards deepening the Nigerian capital market and strengthening our business growth frontiers for the mutual prosperity of all our stakeholders."
The Nigerian Exchange Group’s All Share Index is currently trading at 48,223.86 basis points. Interestingly, the Nigerian exchange has not traded at this level since September 2008, that’s over 13 years ago.
The Nigerian stock exchange has seen significant growth, especially in 2020, when it recorded over 50% growth in ASI. In 2021, the exchange ended the year marginally bullish by 5.89%, despite strong appeal for U.S. dominated stocks. However, its performance in 2021 is relatively small, compared to the parabolic performance in 2020.
So far, in 2022, the ASI Year-to-Date (YtD) performance is bullish by 12.89%, with the Nigerian market being one of the top-performing emerging markets in Africa. This is because in YtD performance, the NGX is doing better than its peers like the Ghana Exchange which is down 3.32% YtD, the Johannesburg Stock Exchange which is down 1.1% YtD and Nairobi Securities Exchange, which is also down 6.4% YtD.
Asides from the listing of new companies, the resilience of the likes of Dangote Cement, Zenith Bank, Guaranty Trust Bank and Access Bank, who were all trading during the time of the market crash have also contributed greatly to the growth of the market.
In a month, the share price of aviation company, NAHCO Plc, appreciated by 42.50% to close at N5.70 per share, taking the market capitalization to N9.26 billion.
The growth in share prices which was recorded by the company can be attributed to the impressive Audited financial performance declared recently for the period ended, December 31, 2021.
In addition, the company’s shares improved on the back of investors’ dividends and bonus issue anticipation, as announced earlier this month.
Hence, the rally in the shares of the company resulted in a gain of N2.76 billion in market capitalization at the close of trading activities on Nigeria’s stock exchange.
The Nigerian banking sector is one of the viable destinations for foreign investors in the country as it attracted over $15.7 billion in foreign investments in the past 5 years, representing one of the most attractive sectors in the Nigerian economy.
This is based on analysis carried out by Nairalytics, the research arm of Nairametrics from data obtained from the Central Bank of Nigeria (CBN).
According to the data, Nigeria recorded $68.87 billion in foreign inflows between 2017 and 2021, with the banking sector accounting for over 22.8% of the total capital imported, which was only bested by the local equities market.
The Nigerian banking sector has been growing in leaps and bounds over the years, with several tech startups springing up in the space. A number of these firms have raised significant amounts since they launched operations in the country while some have hit unicorn status (valued above $1 billion).
The emergence of financial technology firms in the country, all competing for market share while disrupting conventional banking methods has increased the level of activities as investors have come to identify the sector as a profitable one.
A further look at the breakdown of Nigeria’s gross domestic product shows that the financial sector has also expanded all through the five-year period under review. Notably, the sector grew by 10.53% in real terms in 2020, which is lower than the 13.34% annual growth recorded in the previous year.
However, the growth recorded in the past two years, outweigh the preceding years. For example, the banking sector recorded real GDP growth of 2.4%, 1.41%, and 1.92% in 2019, 2018, and 2017 respectively. This shows that the sector traction grew significantly in the last two years.