The Nigerian Exchange Group has announced that its full year transaction fees for 2022 grew by 9 per cent from N2.9 billion recorded in 2021 to N3.2 billion.
According to the group’s financial results released recently, the exchange achieved a year-on-year (YoY) growth of 10.3 per cent in gross earnings to N7.5 billion in 2022 from N6.8 billion reported in 2021. This double-digit growth in the top line was because of the persistent growth in revenue (82.3 per cent of gross earnings) and an impressive 30.1 per cent increase of other income.
The group’s revenue grew by 6.8 per cent to N6.2 billion from N5.8 billion driven largely by the 51.2 per cent growth in treasury investment income to 2.0 billion (FY 2021: N1.3 billion).
Growth in treasury investment income (32.9 per cent of revenue) to N2.0 billion in FY 2022 relative to N1.3 billion in FY 2021 was driven largely by relatively higher yields on the Group’s treasury investment portfolio owing to improved yields on treasury bills, bonds and fixed deposit instruments.
The 9.0 per cent growth in transaction fees (51.2 per cent of revenue) to N3.2 billion in FY 2022 from N2.9 billion recorded in FY 2021 was driven by improved trading activities in Nigerian Exchange Limited (NGX).
The group’s listing fees (12.6 per cent of revenue) grew by 1.3 per cent to N774.7 million in FY 2022 from N754.9 million in FY 2021 driven primarily by a relatively higher listing of corporates on the exchange in the year ended 2022 compared to the same period in 2021.
Commenting on the results, the group managing director, NGX Group Plc, Oscar Onyema, said, the group continued to bed-down its operations post demutualization and restructuring.
According to him, despite the economic headwinds affecting the country, as demonstrated by its year end results, the group have continued to create lasting value. Our top-line expansion drove a 70.6 per cent increase in Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2022.
Onyema said, “In the same year, the Group leveraged its strong equity position and strategically increased its investment in an associate company in order to drive growth, boost efficiency and further maximize overall shareholder value.
However, the bottom-line operating performance slipped mainly due to the interest expenses resulting from borrowing to fulfil the strategic acquisition mentioned above. Our growth will be driven by deepening value creation in subsidiaries and expansion into adjacent businesses. As an organisation, we remain committed to becoming Africa’s preeminent integrated market infrastructure group”.
SOURCE: THE SUN
