The Nigerian Exchange Group Plc (NGX) has reported revenue accruals of N6.17 billion for the year ended December 31, 2022, representing 6.8% surge when compared with the N5.78 billion it generated in 2021.
The Group explained in its audited financial statement, mainly attributed the increase to the 51.2% increase in treasury investment income, which rose to N2 billion in 2022 from N1.3 billion in 2021 and transaction fees which increased by 9% to N3.2 billion in the financial year from N2.9billion in 2021.
According to the financial statement, the group’s total expenses grew by 35.5% to N8.8 billion from N6.5 billion in 2021, primarily driven by interest expense on borrowings totalling N2.1 billion.
A further breakdown of the group’s expenses showed that personnel expenses, which accounted for 42% of total expenses also grew by 13.1% to N3.7 billion from N3.2 billion in 2021 while operating expenses, which accounted for 28.4% of total expenses fell by 7.7% to N2.5 billion in 2022 from N2.7 billion in 2021.
With the huge expenses incurred during the year under review, the NGX Group reported a profit before tax (PBT) of N823 million, down from N2.4 billion in 2021 while its profit after tax (PAT) dipped to N688.5 million, representing 68.9% drop when compared with the N2.2 billion reported in 2021.
Commenting on the financial results, the NGX Group Managing Director/Chief Executive Officer, Mr Oscar Onyema, 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”, Onyema added
Meanwhile, the Group closed 2022 with 50.7% growth in its total assets to N57.1 billion from N37.9 billion as at year end 2021.
It linked the growth primarily to 101.4% growth in investment in associates to N29.7 billion from N14.8 billion in 2021 and 57.4% growth in long-term investment securities to N16.3 billion from N10.4 billion in 2021.
However, the Group’s total liabilities grew by 439.5% from N3.8 billion in 2021 to N20.3 billion as a result of N14.1 billion increased borrowings used to facilitate enhanced investment in select associates.
