A combination of revenue from trading and listing fees, among others were responsible for the 39 percent growth in the Nigerian Stock Exchange (NSE) income for the financial year ended Decemcer 2013, BusinessDay investigations have shown.
The bourse’s annual report seen by BusinessDay ahead of tomorrow’s presentation to members of the Exchange, shows that the N5.40billion in
2013 had income mix with transaction fee accounting for 58% of the NSE’s total income in 2013; entrance levy 12%; listing fee 9%; other income 9%; interest income 6%; and other fees accounted for 6% of the NSE’s total income in 2013.
The bourse’s total income, which provides an important guide to an organisation’s success in generating business, shows that it has grown from a low of N3.547billion in 2011 to N5.4billion in 2013.
Also, operating surplus, which is a key measure of the profitability of a company’s business activity, grew from N258million in 2011 to N3.261billion in 2013.
Cost efficiency, which measures the quantum of resources which go into generating income (used in measuring productivity), has fallen from 100% in 2011, to 58% in 2013; it was 87% in 2012.
Also, the group achieved a huge operating surplus growth of 183% to N3.26 billion from N1.18 billion in the preceding financial year.
Tomorrow at the 53rd Annual General Meeting of the Nigerian Stock Exchange, holding in Lagos, members will be presented the Financial Statement of the Exchange as at December 31, 2013, and the report of the National Council and the Auditors.
The report which was prepared in accordance with the International Financial Reporting Standards (IFRS) shows total assets grew by 20% year-on-year (yoy), trading revenues increased 67% to N3.13 billion,
and market data revenues soared by over 300% as a new business segment for the bourse.
Ahead of the report presentation, it shows equities total volume and value traded in 2013 grew by 20% and 59%, respectively.
Cost-to-income (CIR) which measures the volume of an organisation’s resources which goes into generating income -also used in measuring productivity, dropped from 104% in 2011 to 86% in 2012, and 62% in 2013.
Staff cost-to-revenue ratio, which measures the NSE’s effectiveness in managing its human capital, dropped from 50% in 2011 to 42% in 2012, and 34% in 2013.
The NSE believes firmly in the growth of the Nigerian capital market and is making significant investments to support this ambition.
Among other ordinary businesses at tomorrow’s meeting, members will also be electing the members of the National Council.
The NSE attributes the group’s stellar performance to improved operational efficiencies and its revenue diversification strategies, resulting in an increased share of income from other revenue streams.
The bourse remains firmly focused on cost discipline and on improving operational efficiencies.
The Group believes that its ability to serve as a premier destination for raising capital is a value proposition it continues to state.
In the past year, the Exchange facilitated raising of N286.76 billion ($1.79billion) in capital, despite admitting only three new companies to the Main Board.
Despite its belief that people are a critical component to achieving its strategic goals, the Nigerian Stock Exchange in 2013 employed an average of 22 members of staff in 14 states across the nation.
Iheanyi Nwachukwu
