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By Chinwendu Obienyi
The Nigerian Exchange (NGX) Group Plc has announced that its revenue rose by 14.9 per cent from N5 billion recorded in 2020 to N5.8 billion in 2021.
The Group’s audited results for the full year ended 31 December 2021 revealed that its gross earnings grew to N6.78 billion from N6.02 billion, resulting in a 13 per cent increase. Also, the group’s profit before tax (PBT) increased by 25.4 per cent to N2.39 billion while its profit after tax (PAT) rose by 22.2 per cent to N2.25 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 per cent 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 per cent growth in the transaction feel 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 per cent while its return on assets stood at 5.9 per cent from 5.2 per cent recorded in 2020.
Commenting on the results, the NGX Group Chairman, Otunba Abimbola Ogunbanjo, expressed delight at the progress reported in 2021 and stated that the group’s objective in 2022 is to continue to entrench governance practices that will optimise the functioning of the new business model and structure of the company.
Corroborating him, the Group’s Managing Director, Oscar Onyema, explained that the group went through a restructuring of its business to refine its business model, with an increased focus on expanding into new business areas which are reflective in the activities of the exchange as well as investments in equity interests.
According to Onyema, the NGX Group in 2021, focused on formulating and executing the strategy of the Holding company which includes building a multi-exchange business with diversified revenues as well as strategic and operational flexibility.
“Total income growth of 13 per cent coupled with after-tax profit growth of 22.2 per cent 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’ interests.
As a key player in the development of the continent’s financial markets, we continue to play an active role in strengthening the competitiveness of African economies to achieve global prosperity and shape the future of the markets through our investment in business innovation and technology”, Onyema said.
