Stock Exchange earns N4.14bn as transaction fees in FY’14

In the financial year ended December 31, 2014, the Nigerian Stock Exchange (NSE) group earned N4.140billion as transactions fees, an increase from N3.128billion in 2013.

Also, the Exchange earned N1.536billion as listing fees in 2014, which shows a remarkable an increase from N468.739million in 2013.

According to 2014 annual report, entrance levies declined to N370.138million in 2014, from N661.733million in 2013; while “other fees” rose to N486.868million, from N317.564million in 2013.

The growth in listing fee was accounted for by new listings and supplementary listings recorded in 2014. Other fees represent rent for trading floor, annual charges, dealing license and membership fees and penalty fees received by the Exchange.

The NSE closed the financial year ended December 31, 2014 with its strongest growth in six years. Its total income stood at N8.1billion, 47 percent up from N5.4billion in 2013. Transaction fees were the NSE largest revenue item, growing 32 percent year-on-year, and accounting for 52 percent of total revenue.

Further look at the NSE financials revealed the NSE group’s “other expenses” rose to N2.531billion in 2014 from N1.022billion in 2013. Specifically, “travelling expenses” rose to N107.206million from N72.663million in 2013; “project” expenses rose to N275.759million from N37.062million. Investment and Securities Tribunal expenses stood at N95.139million; while “general expenses” rose to N311.216million from N170.963million in 2013.

Oscar Onyema, chief executive officer (CEO), Nigerian Stock Exchange noted at the 54th annual general meeting (AGM) of the Exchange that the NSE listing programme performed well, “soaring 228 percent as a result of five new equity listings. At the same time, revenue from strategic investments jumped 75 percent, comprised primarily of interest and dividend income.”

Aigboje Aig-Imoukhuede, council president, Nigerian Stock Exchange said at the meeting that the management team maintained an efficient cost-to-income ratio.

“The growth in net assets was driven by a consistent rise in trading revenue and other income. The results were achieved in spite of thinning operating margins and a fourth quarter slowdown in market activity”, Aig-Imoukhuede said.

He further said: “We achieved record revenues, thanks to a focused business model and the completion of several strategic initiatives. These initiatives have strengthened and improved the functioning of our market, leading to significant gains in profitability and efficiency.”

Iheanyi Nwachukwu