Lagos, March 2, 2023 – The Nigerian Exchange Group (NGX) achieved a year-on-year (YoY) growth of 10.3% in gross earnings to ₦7.5 billion in FY 2022 from ₦6.8 billion reported in FY 2021.
The group said this while announcing its audited results for the financial year ended Dec. 31, 2022 in Lagos on Thursday.
The group said this double-digit growth in the top line was because of the persistent growth in revenue (82.3% of gross earnings) and an impressive 30.1% increase of other income.
Its revenue grew by 6.8% to ₦6.2 billion from ₦5.8 billion driven largely by the 51.2% growth in treasury investment income to 2.0 billion (FY 2021: ₦1.3 billion).
Transaction fees which accounted for 51.2% of revenue also increased by 9.0% YoY to ₦3.2 billion (FY 2021: ₦2.9 billion).
Growth in treasury investment income (32.9% of revenue) to ₦2.0 billion in FY 2022 relative to ₦1.3 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% growth in transaction fees (51.2% of revenue) to ₦3.2 billion in FY 2022 from ₦2.9 billion recorded in FY 2021 was driven by improved trading activities in Nigerian Exchange Limited.
Listing fees (12.6% of revenue) grew by 1.3% to ₦774.7 million in FY 2022 from ₦754.9 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.
Rental income (1.6% of revenue) earned from NGX Real Estate lease of office floor spaces recorded a 19.8% increase to ₦99.2 million in FY 2022 from ₦82.8 million recorded in FY 2021.
Other fees, which represent rent of trading floor, annual charges from brokers, dealing licences and membership fell by 84.2% to ₦109.0 million from ₦689.9 million.
Growth recorded by the Group in other income was driven by a 47.2% increase in market data income to ₦581.4 million from ₦395.0 million:
Income of ₦93.7 million from technology accounted for 7.1% of other income.
A 1.6% growth in other operating income made up of sublease income and penalty fees resulted to ₦635.4 million (FY 2021: ₦625.5 million).
The group said its total expenses, however, grew by 35.5% to ₦8.8 billion from ₦6.5 billion in FY 2021 primarily driven by interest expense on borrowings recorded as ₦2.1 billion.
Commenting on the result, Mr. Oscar Onyema, the Group Managing Director, said: “NGX Group continued to bed-down its operations post demutualization and restructuring. Despite the economic headwinds affecting the country, as demonstrated by our year end results, we have continued to create lasting value.
“Our top-line expansion drove a 70.6% increase in Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2022.
“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,” Onyema said. (GBN)
