NGX Group declares 68.9% decline in profit

The Nigerian Exchange Group on Thursday declared 68.9per cent decline in profit after tax to N688.5million in its audited financial statement for full year ended December 31, 2022.

The group had reported N2.2 billion in 2021 result and the decline in the year under review dragged profit after tax margin to 9.3 from 33.1per cent recorded in 2021.

From the profit and loss figures, the group also reported N823million profit before income tax from N2.4 billion in the corresponding period in 2021 due to the growth in finance costs.

NGX released its audited financial statement for full year ended December 31, 2022 with 6.8 per cent Year-on-Year (YoY) increase in revenue to N6.17billion as against N5.78billion reported in the corresponding period of 2021.

The key contributing factors to revenue growth was 51.2per cent YoY increase in treasury investment income to N2 billion in 2022 from N1.3billion in 2021, while transaction fees which accounted for 51.2per cent YoY of revenue also increased by nine per cent YoY to N3.2 billion from N2.9billion in 2021.

From the Group’s profit and loss figures, total expenses grew by 35.5per cent to N8.8 billion from N6.5 billion in 2021, primarily driven by interest expense on borrowings recorded at N2.1 billion.

Further breakdown of expenses revealed that personnel expenses that contributed about 42 per cent of total expenses also grew by 13.1per cent to N3.7 billion from N3.2billion in 2021, while operating expenses which accounted for 28.4per cent of total expenses fell by 7.7per cent to N2.5 billion in 2022 from N2.7 billion in 2021.

With mounting expenses, the NGX Group closed the year with N823million profit before income tax from N2.4 billion in the corresponding period due to the growth in finance costs.

Also, the Group reported 68.9 per cent profit after income tax decline to N688.5million in 2022 from N2.2 billion in reported 2021 resulting in a significant decline in profit after tax margin to 9.3per cent in 2022 from 33.1per cent recorded in 2021.

The Group Managing Director/Chief Executive Officer, Mr. Oscar N. Onyema in a statement 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 70.6per cent 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.

“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.”