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CENTRAL SECURITIES CLEARING SYSTEM PLC                     

QUARTERLY EARNINGS FORECAST

START: 01/07/2017

END:30/09/2017

 

Q3 2017

YEAR TO Q3 2017

N'000

N'000

TOTAL FEE INCOME

                633,126

             2,190,911

OTHER OPERATING INCOME

                   65,715

                166,452

INTEREST INCOME

                908,981

             2,869,124

OPERATING EXPENSES

                781,161

             2,304,990

PROFIT BEFORE TAX

                826,661

             2,921,498

TAX PROVISION

                60,177

             212,672

PROFIT AFTER TAX

                766,483

             2,708,826

NET WORKING CAPITAL

            8,458,552

             8,633,100

NET CASH & CASH EQUIVALENT

853,446

853,446

 

GENERAL ASSUMPTIONS:

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

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 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 trades at the three markets serviced by the Company (NSE, NASD & FMDQ) are expected at about N420million during the quarter. No significant changes are expected in depository fees though there may be some rights issues envisaged for the quarter.

f) Average FX rate is expected at ₦385 per $1 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.