The Central Securities Clearing System Plc (CSCS) has reported a 115.7% surge in profit before tax to N6.49 billion for the first quarter ended March 31, 2026, delivering its strongest opening quarter on record as a controversial fee overhaul began translating into substantially higher earnings.
Profit after tax rose 74.8% to N4.67 billion, while earnings per share climbed to 93.3 kobo from 53.4 kobo in the same period last year, according to the company's abridged unaudited results.
The primary driver was fee income, which surged 95.6% to **N7.31 billion** from N3.74 billion a year earlier, making up nearly 88% of total operating income. The increase reflects CSCS's new pricing framework implemented in January 2026, which introduced significant hikes across key service lines.
The most dramatic changes were concentrated in fixed income services and custodial operations. OTC trade fees leapt from N15 per million to N500 per million — a 3,233% increase — while custody charges moved from a flat N1,300 fee to 0.03% of transaction value, unlocking substantial upside for large portfolios.
Total operating income rose 83.7% to N8.28 billion, compared with N4.51 billion in Q1 2025. Revenue from products and services increased 48% to N758.09 million, and investment income grew 14.9% to N1.52 billion.
Operating expenses rose by a comparatively modest 17.3% to N3.31 billion, creating significant operating leverage. As a result, operating profit nearly tripled to N4.97 billion, while profit before tax more than doubled.
Tax expenses increased sharply to N1.83 billion from N340 million, but the company still delivered a strong bottom-line performance.
On the balance sheet, total assets expanded to N69.39 billion as at March 31, 2026, from N62.80 billion at end-December 2025. Investment securities grew to N41.32 billion, retained earnings rose to N44.08 billion, and total equity strengthened to N48.46 billion.
The stock, traded on the NASD OTC Securities Exchange, has repriced upward since the fee changes were announced, rising from N64.21 per share on April 10 to close at N83.93 as at June 11.
CSCS, Nigeria's central securities depository, provides clearing, settlement, custody, and depository services for transactions on the Nigerian Exchange Group, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange. The company has defended the fee review as necessary to address rising technology and infrastructure costs while supporting capital market modernisation.
