NGX Remains Poised To Sustain Market Dominance – Group CEO

Nigerian Exchange Group Plc (NGX Group) says it has well-defined strategies and is equipped to sustain market dominance.

Presenting highlights of the group’s 2021 performance in an Investor and Analyst Presentation via Zoom on Thursday, the Chief Executive, Oscar Onyema, explained that the group successfully restructured to refine its business model and become active along the entire capital market value chain.

Focus in 2021, he said, was on formulating and executing the strategy of the holding company by building a multi-exchange business with diversified revenues, raising capital and optimizing corporate governance structure, and eliminating redundancy through shared services that are used by multiple divisions across the group.

In his breakdown of the group’s income streams, Onyema explained that the revenue of the non-operating Holdco comprises dividends and treasury investment income, even as it is working with its various subsidiaries and associate companies to optimize their strategy and increase profitability, to support the upstreaming of dividends.

That is why, he stressed, “Nigerian Exchange Limited (NGX), in collaboration with the Group, continues to focus on four pillars of community, marketplace, workplace, and environment to drive sustainability. Furthermore, NGX has digitized its ecosystem to promote more retail participation, and it is leveraging and investing in global market-driven technology, improving the listing universe, and working closely with regulators to enhance ease of doing transactions for issuers. At NGX Group, we have clear and well-defined strategies and are equipped to sustain market dominance”.

Speaking further, the Group’s Chief Financial Officer, Cyril Eigbobo, said gross earnings for the period grew to N6.78bn, from N6.02bn, representing a 13% increase, while profit before tax (PBT) grew by a faster 25.4% to N2.39bn, just as profit after tax (PAT) rose by 22.2% to N2.25bn, from N1.84bn recorded in the corresponding period of 2020.

According to him, the 14.9% jump in the group’s revenue from N5bn in 2020 to N5.8bn in 2021, was driven by a 24.8% growth in listing fees to N757.4m, as against N606.9m in 2020, 4.9% growth in its treasury investment income and a 2.1% growth in transaction fees to N2.9bn, compared to N2.8bn recorded in 2020.