NGX Group Report N5.2 Billion Profit After Tax

The Nigerian Exchange Group Plc recently announced its full-year audited financial statements for 2023, which ended December 31, and the firm stated that it got a Profit After Tax (PAT) of N5.2 billion and its final dividend is N1.5 billion.

The release of the full-year audited financial statements was done by Clifford Akpolo, the Head of Marketing & Corporate Communications of the NGX after he affirmed that the Group witnessed an increase in gross earnings, which rose by 57.4% to settle at N11.8 billion in FY 2023 from the corresponding year which settled at N7.5 billion in 2022 FY.

He attributed this growth to increased revenue generated and other income segments the Group experienced during the 2023 FY.

He said,

"Notably, transaction fees rose by 52.6 per cent, driven by increased trading activities, while listing fees and rental income increased by 42.2 per cent and 41.8 per cent, respectively. Strategic investments also contributed to a 5.4 percent boost in treasury investment income."

"Other income, representing 29.7 per cent of gross earnings, witnessed an unprecedented rise of 163.6 per cent, reaching N3.504 billion. Key contributors to this surge were market data income, which increased by 44.1 per cent, and an exceptional 304.8 per cent rise in other operating income."

However, according to the company's communications head report, the firm's board approved a final dividend of N1.5 billion at 75 Kobo per share for the year ending December 31, 2023.

He also stated that in addition to an interim dividend of N495.53 million at 25 Kobo per share paid in August 2023, the total dividend for FY 2023 will be N1 per share.

Regarding the issue of dividends, the Group Chairman of NGX Group, Umaru Kwairanga, expressed profound satisfaction and optimism, stating, 

"Today's announcement of both the financial results and dividend pay-out is a testament to NGX Group's unwavering commitment to maximising shareholder value and the resilience of our financial position.

"We are elated to reward our shareholders, and this underscores our confidence in the Company's sustainable growth.

"I would like to reassure all stakeholders that the Board and Management are focused on positioning NGX Group as Africa's premier financial market infrastructure."

The Group Chief Executive Officer of NGX Group, Temi Popoola, also expressed his satisfaction with the Company's operational performance.

He said: "I am pleased with the significant improvement in NGX Group's operational performance. We have witnessed notable increases in the transaction and listing fees and rental and treasury investment income."

"Our strategic focus on technology income and other streams, along with strong capital allocation, has led to a notable increase in return on equity to 13.8 percent."

Popoola assured of the Group's commitment to continue its trajectory of growth, innovation, and value creation for its stakeholders in the upcoming fiscal year.

NGX Group's financial metrics highlight a substantial turnaround and operational success.

Gains

NGX Group Operating profit reversed from a loss to a gain of N433 million, which signifies a 130.2% improvement, that reflected the operational efficiency and profitability transformation by the Company

NGX Group's profit before income tax skyrocketed by 639%, reaching N5.27 billion, driven by strong revenue performance and optimised cost management.

It was capped by a 788% surge in after-tax profit to N5.25 billion, with an improved profit after-tax margin of 44.49%, showcasing the Groups financial health and earnings quality.