The Central Securities Clearing System Plc has reported a 115.7 per cent increase in profit before tax to N6.49 billion for the first quarter ended March 31, 2026, as the company’s sweeping fee structure overhaul delivered a sharp rise in revenue and operating profitability.

Nairametrics reported that this is according to the abridged unaudited results showing that pretax profit climbed from N3.01 billion in the corresponding period of 2025, driven largely by a near doubling of fees income following the implementation of a new pricing framework that took effect in January.

Profit after tax rose by 74.8 per cent to N4.67 billion, while earnings per share increased to 93.3 kobo from 53.4 kobo a year earlier.

The performance represents CSCS’s strongest opening quarter on record and provides the clearest indication yet that its controversial fee review is already translating into significantly higher earnings.

The first-quarter results suggest that CSCS’s fee restructuring has begun delivering substantial financial benefits, with revenue growth significantly outpacing cost increases.

Total operating income rose 83.7% to N8.28 billion, compared with N4.51 billion in the same period last year.

The primary driver was fees income, which surged 95.6% to N7.31 billion from N3.74 billion, accounting for nearly 88% of total operating income during the quarter.

Revenue from products and services also increased by 48.0% to N758.09 million, while investment income rose to N1.52 billion from N1.32 billion.

Total operating expenses grew 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 to N6.49 billion.

Although tax expenses increased sharply to N1.83 billion from N340 million, the company still delivered a strong bottom-line performance with profit after tax rising to N4.67 billion.

The results come less than four months after CSCS introduced its most extensive pricing review since inception.

The 2026 fee structure introduced a decisive shift toward institutional clients, value-based pricing, and significantly higher transaction charges across key services.

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, making it the single largest revenue boost in the new structure.

Custody-related charges moved from a flat N1,300 to 0.03% of transaction value, unlocking significant upside for large portfolios.

The steep jump in the fees earning to N7.31 billion in a single quarter, compared with N3.74 billion across the entirety of Q1 2025, suggests that the fixed income and custody changes have already begun flowing through to the income statement.

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 from N39.59 billion.

Retained earnings climbed to N44.08 billion from N39.42 billion, reflecting the accretion of fresh profits.

Total equity strengthened to N48.46 billion from N43.79 billion.

The increase in retained earnings reflects the strong profit accretion recorded during the quarter and further strengthens the company’s capital position. The key question for analysts and investors is whether the earnings trajectory is sustainable in subsequent quarters.

CSCS defended the sweeping prices review as necessary to address rising technology, infrastructure, and operating costs while supporting modernization of Nigeria’s capital market ecosystem.

The push to deepen revenue generation beyond traditional clearing and settlement services, has yielded improved revenue earnings in Q1, 2026.
And if sustained in subsequent quarters, CSCS could fulfill its promise of improved dividend payouts to shareholders during the 32nd Annual General Meeting in April 2026.

The capital market has repriced CSCS shares traded on NASD OTC Securities Exchange, Nigeria’s over-the-counter (OTC) exchange.

The stock price rose from N64.21 as of April 10 to close at N83.93 per share as at Thursday, June 11.

CSCS is Nigeria’s central securities depository, the backbone of post-trade operations, providing clearing, settlement, custody, and depository services for transactions executed on the Nigerian Exchange Group, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange.