Kayode Ogunwale

Nigerian Exchange Group Plc has announced its full-year Audited Financial Statements for the year ended 31 December 2023, with a profit after tax of N5.2 billion and a declaration of a final dividend of N1.5 billion.

The Group experienced a surge in gross earnings, rising by 57.4 percent to N11.8 billion in financial year 2023 from N7.5 billion in financial year 2022. This growth was attributed to performances in core revenue and other income segments. Notably, transaction fees rose by 52.6 percent, driven by increased trading activities, while listing fees and rental income increased by 42.2 percent and 41.8 percent, respectively. Strategic investments also contributed to a 5.4 percent boost in treasury investment income.

Other income, representing 29.7 percent of gross earnings, witnessed an unprecedented rise of 163.6 percent, reaching N3.504 billion. Key contributors to this surge were market data income, which increased by 44.1 percent, and an exceptional 304.8 percent rise in other operating income.

In light of the robust operational performance, the Board approved a final dividend of N1.5 billion at 75 Kobo per share for the year ended 31st December 2023. This is in addition to an interim dividend of N495.53 million at 25 Kobo per share paid in August 2023, bringing the total dividend for FY 2023 to N1 per share.

Commenting on the dividend, the Group Chairman, NGX Group, Alhaji (Dr) Umaru Kwairanga, expressed profound satisfaction and optimism, stating, “Today’s announcement of both the financial results and dividend pay-out is a testament to NGX Group’s unwavering commitment to maximising shareholder value and the resilience of our financial position. We are elated to reward our shareholders, and this underscores our confidence in the sustainable growth of the Company. I would like to reassure all stakeholders that the Board and Management are focused on positioning NGX Group as the premier financial market infrastructure in Africa.”

The Group Chief Executive Officer, NGX Group, Mr. Temi Popoola, echoed this sentiment, expressing satisfaction with the Company’s operational performance. “I am pleased with the significant improvement in NGX Group’s operational performance. We have witnessed notable increases in transaction and listing fees, as well as in rental and treasury investment income. Our strategic focus on technology income and other streams, along with strong capital allocation, has led to a notable increase in return on equity to 13.8 percent. NGX Group is poised to continue its trajectory of growth, innovation, and value creation for its stakeholders in the upcoming fiscal year.”

NGX Group’s financial metrics highlight a substantial turnaround and operational success. Operating profit reversed from a loss to a gain of N433 million, a 130.2 percent improvement, reflecting operational efficiency and profitability transformation. Profit before income tax skyrocketed by 639 percent, reaching N5.27 billion, driven by strong revenue performance and optimised cost management. This was capped by a 788 percent surge in after-tax profit to N5.25 billion, with an improved profit after-tax margin of 44.49 percent, showcasing the Group’s financial health and earnings quality.