The Nigerian Exchange Group Plc (NGX Group) has reported 138.3 per cent growth in gross earnings to N4.2 billion for the half year ended 30 June, 2022. Commenting, Mr. Oscar N. Onyema, the Group Managing Director/Chief Executive Officer, said: “In 2021, we took strategic steps to reorganise our business by laying the foundation for the rebirth of our franchise as we became a fully-fledged for-profit making company with a clear focus on maximising resources and improving stakeholder returns.
“Our performance in the first half of 2022 is a testament to our ability to deliver long-term value. We recorded impressive growth in our top line to deliver a profit before tax of N1.22 billion despite the peculiar challenges inherent in our operating environment.
“Our goal remains to sustain our position as a leading integrated market infrastructure group in Africa, by diversifying our revenue streams, and identifying and investing in new businesses. We remain focused on building formidable businesses through broader and deeper involvement in every sphere of the capital market value chain through informed investments in profitable verticals and enhanced risk management practices, without losing sight of emerging opportunities in unrelated businesses within the Sub-Saharan African region.”
The unaudited results for the half year ended June 30, 2022 showed that the company’s gross earnings recorded a significant growth of 138.3 per cent to N4.22 billion from N1.77 billion as of June 2021 benefitting primarily from a 140.4 per cent growth in revenue (91 per cent of gross earnings), and 119.6 per cent growth in other income (nine per cent of gross earnings).
The Revenue growth of 140.4 per cent (N2.23 billion) to N3.82 billion in June 2022 from N1.58 billion recorded in June 2021 was driven by 165.1 per cent growth in treasury investment income (26.6 per cent of revenue) to N1,017.4 million in June 2022 relative to N383.7 million in the comparative period in 2021 driven largely by relatively higher yields on the Group’s treasury bills, bonds and fixed deposit investments.
Other performance indicators include 198.4 per cent growth in transaction fees (60.7 per cent of revenue) to N2,320.7 million in June 2022 from N777.7 million recorded in June 2021 due to a significant increase in trading activities in Nigerian Exchange Limited (“NGX” or “The Exchange”).