Nigerian Exchange Group (NGX Group) has released its audited results for the full year ended December 31, 2021.
The Group’s audited results revealed that its gross earnings grew to N6.8 billion from N6 billion, resulting in a 13 percent increase. Revenue rose by 14.9 percent from N5 billion recorded in 2020 to N5.8 billion in 2021. Also, the group’s profit before tax (PBT) increased by 25.4 percent to N2.4 billion while its profit after tax (PAT) rose by 22.2 percent to N2.3 billion from N1.84 billion recorded in the corresponding period of 2020.
According to the Group, the jump in its revenue was driven by a 24.8 percent growth in listing fees, which grew to N757.4 million as against N606.9 million in 2020, 4.9 per cent growth in its treasury investment income and a 2.1 percent growth in transaction fee, which rose to N2.9 billion from N2.8 billion recorded in 2020.
Further analysis of the NGX Group’s result revealed that its return on equity grew by 70 basis points to 6.6 percent while its return on assets stood at 5.9 percent from 5.2 percent recorded in 2020.
Commenting on the results, NGX Group Chairman, Otunba Abimbola Ogunbanjo, stated, “We are delighted at the progress reported for FY 2021 across strategic, operational and financial aspects of the Group’s business.
The Demutualisation and Listing by Introduction were significant and unprecedented milestones for the Group and we would like to thank our stakeholders for their support and trust in the Group’s quest to unlock its true value and diversify its operations and product offerings.
All within one year, we demutualised, restructured, and listed the business with Holdco being the investment holding company with three operating subsidiaries and other associate companies and equity investments.
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The Board has during the year under review, focused broadly on adapting to the enhanced corporate governance demands following the change in organizational form, whilst exercising its oversight functions on strategy development and execution and drilling down on emerging value accretive opportunities presented by the demutualisation. In 2022, the aim is to continue to strengthen the NGX Group brand to make it a globally respected and a regional and national significant economic actor”.
Corroborating him, the Group’s Managing Director/Chief Executive Officer, Oscar N. Onyema, explained that the Group went through a restructuring of its business to refine its business model, with increased focus on expanding into new business areas, which is reflective in the activities of the Group.
According to Onyema, NGX Group, in 2021, focused on formulating and executing the strategy of the Holding company, which includes building multiple businesses across the entire capital market value chain with diversified revenues as well as strategic and operational flexibility. “Gross earnings growth of 13percent coupled with after tax profit growth of 22.2percent is an encouraging start to our journey as an investment holding company”.
“Going forward our focus remains: on strengthening our capital structure; being active in every sphere of the capital markets value chain in Nigeria, but also growing our presence across Africa as a leading integrated market infrastructure provider; optimising our current investments and making new strategic investments; and recruiting top talents to execute our strategy. We aim to continue to create value, optimise profitability and build a sustainable business in alignment with stakeholders’ interest,” Onyema said.
