Kayode Tokede
The Nigerian Exchange Group Plc, yesterday released its audited financial statement for full year ended December 31, 2022 with 6.8 per cent Year-on-Year (YoY) increase 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 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 & 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 as 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 under review 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, NGX Group 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.”
He added that, “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”.
Meanwhile, the Group closed 2022 with total assets that expanded by 50.7per cent to N57.1 billion from N37.9 billion as at year end 2021, driven primarily by 101.4per cent growth in investment in associates to N29.7 billion from N14.8 billion in 2021 and a 57.4per cent growth in long-term investment securities to N16.3 billion from N10.4 billion in 2021.
Total liabilities recorded a 439.5per cent increase from N3.8 billion as at 2021 to N20.3 billion as a result of N14.1 billion increased borrowings used to facilitate the increase in investment in select associates.
