The Nigerian Exchange Group (NGX) has announced a 10.3 per cent growth in gross earnings in its audited financial report for the year ended in 2022 to N7.5 billion from N6.8 billion reported in 2021.
The top-line double-digit growth was as a result of the persistent growth in revenue of 82.3 per cent in gross earnings and a 30.1 per cent increase in other income.
Its revenue also grew by 6.8 per cent to N6.2 billion from N5.8 billion driven largely by the 51.2 per cent growth in treasury investment income to N2.0 billion as against N1.3 billion posted a year before.
Transaction fees which accounted for 51.2 per cent of revenue also increased by 9.0% per cent to N3.2 billion from N2.9 billion.
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Growth in treasury investment income (32.9% of revenue) to N2.0 billion in 2022 relative to N1.3 billion in 2021 was driven largely by relatively higher yields on the Group’s treasury
Listing fees, which represent 12.6% of its revenue grew by 1.3 per cent to N774.7 million in 2022 from N754.9 million in 2021 driven primarily by a relatively higher listing of corporates on the Exchange in the year ended 2022 compared to the same period in 2021.
Its profit before income tax declined to N823.0 million in 2022 from N2.4 billion in the corresponding period in 2021 due to the growth in finance costs.
Similarly, profit after income tax decreased by 68.9% to N688.5 million from N2.2 billion in FY 2021 resulting in a significant decline in profit after tax margin to 9.3% from 33.1% recorded in 2021.
Commenting on the financial performance, Mr Oscar Onyema, the Group Managing Director/Chief Executive Officer, said the 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 70.6% increase in Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2022.
“However, the bottom-line operating performance slipped mainly due to the interest expenses resulting from borrowing to fulfil the strategic acquisition mentioned above.”