NGX Group’s nine months profit up 606.2% on improved revenue, limited personnel expenses

…transaction, listing fees account for 60.8%, 11.9% of revenue

Nigerian Exchange Group Plc (NGX Group) has announced its unaudited results for nine months ended September 30, 2023.

The results for the nine months ending September 2023, according to NGX Group underscore its steadfast commitment to progress, operational acumen, and delivering enhanced value to its stakeholders.

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In the first nine months, NGX Group recorded a significant 20.2percent growth in gross earnings, elevating the value to N6.86 billion from N5.71 billion as of September 2022. This uptick is credited to increases in both the revenue and other income categories.

Revenue surged by 19.6percent to reach N5.95 billion, up from N4.97 billion in September 2022. Revenue was influenced by a decrease of 5.9percent in treasury investment income, constituting 24.2percent of the revenue, resulted in N1.442billion.

“This is down from N1.533billion during the same period in 2022, attributed to a reduction in our naira-denominated investment instruments”.

It recorded a robust 33.2percent growth in transaction fees (60.8percent of the revenue) to N3.615billion, spurred by heightened trading activities in Nigerian Exchange Limited (NGX).

Also recorded was a 25.5percent boost in listing fees (11.9percent of revenue) to N705.8 million, reflecting the superior listing services provided to domestic corporates.

Rental income from NGX Real Estate’s office spaces rose by 37.4percent to N106.9 million. Other fees, however, saw a 9.8percent decrease, tallying up to N79 million.

The operating profit showcased a striking turnaround with an increase of 148.9percent, registering N435.3 million. This contrasts with the loss of N890.8 million recorded in September 2022.

Profit before income tax (PBT) experienced a 313percent increase, culminating in N1.92 billion of profit. This was propelled by the improved revenue and contained personnel expenses.

After-tax profit soared by 606percent to N1.22 billion, with the after-tax margin now standing at an impressive 17.77percent.

While commenting on the results, Oscar N. Onyema, Group Managing Director/Chief Executive Officer, NGX Group said, “Amid the diverse economic challenges and opportunities that characterised the year, NGX Group has demonstrated remarkable resilience by achieving a 7-fold increase in profit after tax, reaching an impressive N1.2 billion”.

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He said, “This outstanding performance is a testament to our unwavering commitment to bolstering the growth and stability of the Nigerian capital market. It also reflects the positive sentiment prevailing within the ecosystem, in light of the pro-market stance of the new administration.

“As we diligently monitor both global and domestic economic shifts, our adaptability equips us to effectively navigate the complex financial markets landscape. At NGX Group, we remain committed to driving growth, implementing cutting-edge technological solutions, and providing essential resources for successful cross-border engagements, not only within Africa but also on a global scale”.