NGX Group grossed N7.5 billion in 2022
By Oghale Mafuru
Nigerian Exchange Group has announced a year-on-year (YoY) growth of 10.3% in gross earnings to N7.5 billion in the year ended 2022 from N6.8 billion reported the previous year.
According to a statement released by the financial institution, the double-digit growth in the top line was because of the persistent growth in revenue which amount to 82.3% of gross earnings showing an impressive 30.1% increase of other income.
It adds that revenue grew by 6.8% to N6.2 billion from N5.8 billion driven largely by the 51.2% growth in treasury investment income to 2.0 billion from N1.3 billion recorded in 2021 while transaction fees which accounted for 51.2% of revenue also increased by 9.0% YoY to N3.2 billion from N2.9 billion recorded the previous year.
“Growth in treasury investment income (32.9% 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. A 9.0% growth in transaction fees (51.2% 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” the statement reads.
Growth recorded by the Group in other income was driven by a 47.2% increase in market data income to N581.4 million from N395.0 million as income of N93.7 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 N635.4 million from N625.5 million in 2021.
Total expenses grew by 35.5% to N8.8 billion from N6.5 billion in FY 2021 primarily driven by interest expense on borrowings recorded as N2.1 billion. Personnel expenses (41.5% of total expenses) also grew by 13.1% to N3.7 billion
Profit before income tax declined to N823.0 million in 2022 from N2.4 billion in the corresponding period in 2021 due to the growth in finance costs while profit after income tax decreased by 68.9% to N688.5million from N2.2 billion in 2021 resulting in a significant decline in profit after tax margin to 9.3% from 33.1% recorded in 2021.
Commenting, Mr. Oscar N. Onyema OON, the Group Managing Director/Chief Executive Officer, 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 organization, we remain committed to becoming Africa’s preeminent integrated market infrastructure group”.
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