The Nigerian Exchange Group Plc has recorded a revenue of N6.17 billion in its audited financial statement, ended Dec. 31, 2022.
The Group said this in a corporate disclosure to the NGX, on Thursday, that the figure represented an increase of 6.8 per cent Year-on-Year (YoY) when compared with N5.78 billion reported in the corresponding period of 2021.
The increase was attributed to the 51.2 per cent YoY appreciation in treasury investment income which rose to N2 billion in 2022 from N1.3 billion in 2021.
Also, transaction fees increased to 51.2per cent YoY of revenue which also grew by nine per cent YoY to N3.2 billion from N2.9billion in 2021.
From the Group’s profit and loss figures, total expenses grew by 35.5 per 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 13.1 per cent to N3.7 billion from N3.2 billion in 2021.
Operating expenses which accounted for 28.4 per cent of total expenses fell by 7.7 per 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 N823 million 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 N688.5 million in 2022 from N2.2 billion reported in 2021, resulting in a significant decline in profit after tax margin to 9.3 per cent in 2022 from 33.1 per cent recorded in 2021.
The Group Managing Director/Chief Executive Officer, NGX Group Mr Oscar 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.
“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 50.7 per cent to N57.1 billion from N37.9 billion as at year end 202.
This was driven primarily by 101.4 per cent growth in investment in associates to N29.7 billion from N14.8 billion in 2021 and a 57.4 per cent growth in long-term investment securities to N16.3 billion from N10.4 billion in 2021.
Total liabilities recorded a 439.5 per 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.
