The Nigerian Stock Exchange (NSE), on Monday, said its earnings and surplus for the year ended December 31, 2018, was expectedly impacted as investors sought safe havens, just as listings revenue and transaction fees suffered significant declines, compared to the previous year.
Addressing shareholders at the annual general meeting in Lagos, Oscar Onyema, chief executive of the exchange noted that while listings revenue suffered a 21% drop to N1.4bn; transaction fees dropped 13% to N3.3bn.
These, he noted, showed the influence of the capital market trends within the period, following which total revenue declined to N7.67bn, 8% from the prior year, “as investors sought towards more guaranteed investment asset classes in the face of uncertainty.”
Nonetheless, Onyema said the NSE demonstrated resilience in the face of a challenging operating environment and closed “the year with a surplus of N2.70bn. “
The balance sheet, he continued, however, “remained strong with a 9% growth in total assets as the Group closed 2018 with total assets of N29.1bn, with approximately N4.1bn (14%) held in liquid assets and an accumulated fund of N25.9bn to close the year with a sound liquidity position and strong balance sheet.”
Also speaking, President of the National Council of the NSE, Otunba Abimbola Ogunbanjo said the decline was in line with global markets, but “was counterbalanced by the NSE’s delivery of key initiatives for the development of the Nigerian capital market.”
Among major transaction recorded during the period under review, he continued, were the listing of the pioneer N10.69bn Federal Government of Nigeria Sovereign Green Bond and N100bn FGN Ijarah Sukuk Bond by the Debt Management Office (DMO).
This, he continued, “further asserted our aspiration as the platform for both the public and private sector to raise and access capital, encourage financial inclusion and create sustainable value.
“We also expanded our focus on retail investment, positioning the Exchange to deploy innovative and agile smart products and services. We made significant progress with the Demutualization process, with the bill now signed into law and assented to the President. The successful completion of this project will ultimately strengthen our market as a significant driver of socio-economic development”.
The NSE, he stressed, will continue to capitalize on new opportunities, take advantage of recent technological disruptions and seek corporate partnerships, to maintain a fair and orderly market while delivering sustainable values to its customers and stakeholders.
•Photo caption: From left: Mrs. Fatimah Bintah Bello–Ismail, National Council Member, The Nigerian Stock Exchange (NSE); Aigboje Aig-Imoukhuede, Ex-Officio, NSE; Oscar Onyema, Chief Executive Officer, NSE; Otunba Abimbola Ogunbanjo, President of the National Council, NSE; and Mrs. Mojisola Adeola, Secretary to the Council, NSE during the Annual General Meeting (AGM) at the Exchange on Monday, September 30, 2019 in Lagos.