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NGX Group announces growth of 22.2% in Profit After Tax

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Oscar Onyema

Nigerian Exchange Group (NGX) Plc has reported a 22.2 per cent growth in its profit after tax (PAT) for the 2021 financial year.

This is contained in the Groups audited financial report for the full year released recently by the bourse.

The Group’s audited results revealed that its gross earnings grew to N6.8 billion from N6.0 billion, resulting in a 13 per cent increase. Revenue rose by 14.9 per cent from N5 billion recorded in 2020 to N5.8 billion in 2021.

Also, the group’s profit before tax (PBT) increased by 25.4 per cent to N2.4 billion while its profit after tax (PAT) rose by 22.2 per cent to N2.3 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 transaction fee, 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, NGX Group Chairman, Otunba Abimbola Ogunbanjo, expressed delight at the progress reported for FY 2021 across strategic, operational and financial aspects of the Group’s business.

He noted that the demutualisation and listing by introduction were significant and unprecedented milestones for the Group, while he thanked stakeholders for their support and trust in the Group’s quest to unlock its true value and diversify its operations and product offerings.

“All within one year, we demutualised, restructured, and listed the business with the Holdco being the investment holding company with three operating subsidiaries and other associate companies and equity investments.

“The Board has during the year under review, focused broadly on adapting to the enhanced corporate governance demands following the change in organizational form, whilst exercising its oversight functions on strategy development and execution and drilling down on emerging value accretive opportunities presented by the demutualisation.

“In 2022, the aim is to continue to strengthen the NGX Group brand to make it a globally respected and a regional and national significant economic actor”.

Corroborating him, the Group’s Managing Director/Chief Executive Officer, Oscar N. Onyema, OON, explained that the Group went through a restructuring of its business to refine its business model, with increased focus on expanding into new business areas, which is reflective in the activities of the Group.

According to Onyema, NGX Group, in 2021, focused on formulating and executing the strategy of the Holding company, which includes building multiple businesses across the entire capital market value chain with diversified revenues as well as strategic and operational flexibility.

“Gross earnings growth of 13.0% coupled with after tax profit growth of 22.2% 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’ interest”, Onyema said.

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