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CENTRAL SECURITIES CLEARING SYSTEM PLC                     

QUARTERLY EARNINGS FORECAST

START: 01/10/2017

END:31/12/2017

 

Q4 2017

YEAR TO Q4 2017

N'000

N'000

TOTAL FEE INCOME

                859,619

             3,780,397

OTHER OPERATING INCOME

                   38,705

                146,778

INTEREST INCOME

                908,981

             3,918,672

OPERATING EXPENSES

                762,636

             2,613,470

PROFIT BEFORE TAX

                1,044,669

             5,232,376

TAX PROVISION

                -114,914

              -565,691

PROFIT AFTER TAX

                929,755

             4,666,686

NET WORKING CAPITAL

            8,702,999

             8,702,999

NET CASH & CASH EQUIVALENT

144,651

144,651

 

GENERAL ASSUMPTIONS:

The basic assumptions for the preparation of the fourth 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 positively by the stability in the FX market in terms of rates due to regular intervention by the CBN.

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 ₦365 per $1 during the period.

g) That Nigerian economy has recorded 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.