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CENTRAL SECURITIES CLEARING SYSTEM PLC                     

QUARTERLY EARNINGS FORECAST

START: 01/04/2017

END: 30/06/2017

 

Q2 2017

YEAR TO Q2 2017

N'000

N'000

TOTAL FEE INCOME

                575,146

             1,198,729

OTHER OPERATING INCOME

                   66,686

                115,122

INTEREST INCOME

                908,980

             1,502,589

OPERATING EXPENSES

                641,219

                874,603

PROFIT BEFORE TAX

                909,593

             1,941,837

TAX PROVISION

                   45,480

                   97,092

PROFIT AFTER TAX

                864,113

             1,844,745

NET WORKING CAPITAL

             7,404,770

             7,404,770

NET CASH & CASH EQUIVALENT

632,274

632,274

 

GENERAL ASSUMPTIONS:

The basic assumptions for the preparation of the Second quarter 2017 earnings forecast:

a) Expected annual PAT growth rate of 10% of 2015 figures for both 2016 and 2017 financial years as contained in the revised five-year strategy plan.

b) The MPR would remain between 12% and 14% in 2017.

c) Interest income from investments in Bonds (Government & Corporate) during the year would average of 14.84% effective yield on invested funds for 2017, uniformly spread over the year.

d) Total expenses would be impacted significantly by the volatility of FX market both in terms of liquidity and rates.

e) Transaction values of levels at the three serviced by the Company (NSE, NASD & FMDQ) are expected to avearage N420million during the quarter. No significant changes are expected in depository fees as there are no new listings envisaged for the quarter.

f) Average FX rate for 2017 is expected at ₦500 per $1 is expected during the period.

g). That Nigerian economy is expected to record a positive growth for the first time since the second quarter of 2016 with oil prices stabilizing at above $50 per barrel and increased production levels. The impact of the easing of restriction on price movement of the Naira will impact positively on FX liquidity in the economy.