Lagos, 4 March 2024 – Nigerian Exchange Group Plc (NGX Group or the Company) is pleased to announce its full-year Audited Financial Statements for the year ended 31 December 2023, with a profit after tax of N5.2 billion and a declaration of a final dividend of N1.5 billion.
Group Financial Highlights[1]
| Income statement | |||
| In millions of naira | Dec-23 | Dec-22 | % Change |
| Revenue | 8,299.9 | 6,170.4 | 34.5% |
| Other income | 3,504.0 | 1,329.2 | 163.6% |
| Gross earnings | 11,803.9 | 7,499.6 | 57.4% |
| Personnel expenses | (4,940.1) | (3,664.5) | -34.8% |
| Operating expenses | (3,277.0) | (2,508.2) | -30.7% |
| EBITDA | 3,586.8 | 1,326.9 | 170.3% |
| Depreciation and Amortization | (394.2) | (550.7) | 28.4% |
| EBIT | 3,192.6 | 776.3 | 311.3% |
| Interest expense on borrowings | (2,340.4) | (2,100.5) | -11.4% |
| Impairment charge/reversal on assets | (419.2) | (110.5) | -279.3% |
| Total expenses | (11,370.9) | (8,934.3) | -27.3% |
| Operating (loss)/Profit | 433.0 | (1,434.7) | 130.2% |
| Share of profit-equity accounted investees | 4855.9 | 2150.8 | 125.8% |
| Profit before income tax | 5,289.0 | 716.1 | 638.6% |
| Profit /(loss) for the year | 5,251.0 | 591.5 | 787.7% |
| Balance sheet | |||
| In millions of naira | Dec-23 | Dec-22 | % Change |
| Cash and cash equivalent | 6,577.6 | 4,749.7 | 38.5% |
| Long-term investment securities | 16,348.4 | 16,330.1 | 0.1% |
| Investment in associates | 31,592.4 | 29,711.2 | 6.3% |
| Property, plant, and equipment | 3,640.7 | 3,827.4 | -4.9% |
| Total assets | 59,841.3 | 57,063.2 | 4.9% |
| Total equity | 39,463.6 | 36,807.3 | 7.2% |
| Total liabilities | 20,377.8 | 20,255.9 | 0.6% |
| Key ratios | Dec-23 | Dec-22 | % Change |
| Returns on average equity (ROAE) | 13.8% | 1.6% | 756.8% |
| Return on average assets (ROAA) | 5.5% | 1.4% | 301.5% |
| EBITDA margin | 30.4% | 17.7% | 71.7% |
| Operating profit margin | 3.7% | -19.1% | -119.2% |
| Profit after tax margin | 44.49% | 7.89% | 464.0% |
Commenting on the dividend, the Group Chairman, NGX Group, Alhaji (Dr) 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 sustainable growth of the Company. I would like to reassure all stakeholders that the Board and Management are focused on positioning NGX Group as the premier financial market infrastructure in Africa.”
The Group Chief Executive Officer, NGX Group, Mr. Temi Popoola, echoed this sentiment, expressing satisfaction with the Company’s operational performance. “I am pleased with the significant improvement in NGX Group’s operational performance. We have witnessed notable increases in transaction and listing fees, as well as in 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%. NGX Group is poised to continue its trajectory of growth, innovation, and value creation for its stakeholders in the upcoming fiscal year.”
Group Financial Performance Review
The Group experienced a surge in gross earnings, rising by 57.4% to N11.8 billion in FY 2023 from N7.5 billion in FY 2022. This growth was attributed to performances in core revenue and other income segments. Notably, transaction fees rose by 52.6%, driven by increased trading activities, while listing fees and rental income increased by 42.2% and 41.8%, respectively. Strategic investments also contributed to a 5.4% boost in treasury investment income.
Other income, representing 29.7% of gross earnings, witnessed an unprecedented rise of 163.6%, reaching N3.504 billion. Key contributors to this surge were market data income, which increased by 44.1%, and an exceptional 304.8% rise in other operating income.
Considering the robust operational performance, the Board approved a final dividend of N1.5 billion at 75 Kobo per share for the year ended 31st December 2023. This is in addition to an interim dividend of N495.53 million at 25 Kobo per share paid in August 2023, bringing the total dividend for FY 2023 to N1 per share.
NGX Group’s financial metrics highlighted a substantial turnaround and operational success. Operating profit reversed from a loss to a gain of N433 million, a 130.2% improvement, reflecting operational efficiency and profitability transformation. Profit before income tax skyrocketed by 639%, reaching N5.27 billion, driven by strong revenue performance and optimised cost management. This 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 Group’s financial health and earnings quality.
Despite a 27.3% increase in total expenses, our strategic cost management and operational efficiencies have been evident by a controlled 31% rise in operating expenses, influenced by foreign currency denominated expenses, driven by dependency expenses denominated in foreign currency. An increase in finance costs, managed within the context of our broader financial planning and a proactive approach to managing personnel expenses, despite a 34.8% increase, ensures alignment with our strategic objectives.
Our balance sheet remains robust and well-positioned for future growth. We currently have a 4.9% increase in total assets, with a notable rise in cash and cash equivalents which highlights our solid liquidity position and financial stability. Although, a slight increase in total liabilities at 0.6% was carefully managed to support growth while maintaining financial prudence.
In conclusion, the FY 2023 results reflect our unwavering commitment to operational excellence, strategic growth, and financial stewardship as we remain focused on enhancing shareholder value and positioning the company for sustained growth in the years ahead.
Contact Information
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Notes to Editors
Nigerian Exchange Group Plc (NGX Group) is a leading integrated market infrastructure provider in Africa. We service the largest economy in Africa and are strengthening the competitiveness of African economies to achieve global prosperity. As a key player in the continent’s financial markets, we take an active role in shaping the future of the markets through our investment in business innovation and technology.
NGX Group provides a wide range of services including listing and trading securities, licensing, market data solutions, ancillary technology, regulation, real estate, and more through its wholly-owned subsidiaries – NGX Exchange, NGX REGCO, and NGX RELCO. The Group is also involved in the financial infrastructure space with investments in NG Clearing Limited, Central Securities and Clearing Systems (CSCS), OTC platforms and three (3) fintech companies.
Nigerian Exchange Group is committed to the highest international standards. To support this commitment, NGX Group ?belongs to a number of international and regional organisations that promote the development and integration of global best practices.
NGX Group continues to evolve to meet the needs of its valued customers and to achieve the highest level of competitiveness.
For further information, please refer to our website www.ngxgroup.com
Consolidated and separate statement of comprehensive income
| In millions of naira | Dec-23 | Dec-22 |
| Revenue | 8,299.9 | 6,170.4 |
| Other income | 3,504.0 | 1,329.2 |
| Gross earnings | 11,803.9 | 7,499.6 |
| Personnel expenses | (4,940.1) | (3,664.5) |
| Depreciation and Amortisation | (394.2) | (550.7) |
| Operating expenses | (3,277.0) | (2,508.2) |
| Total expenses | (11,370.9) | (8,934.3) |
| Operating profit/(loss) | 433.0 | (1,434.7) |
| Finance Cost | (2,340.4) | (2,100.5) |
| Impairment charge/reversal on assets | (419.2) | (110.5) |
| Profit/(Loss) before investee income | 433.0 | (1,434.7) |
| Share of profit of equity accounted investees (net of income tax) | 4,855.9 | 2,150.8 |
| Profit before minimum taxation | 5,289.0 | 716.1 |
| Minimum tax | (17.3) | – |
| Profit before income tax | 5,271.7 | 716.1 |
| Income tax expense | (20.7) | (124.6) |
| Profit for the year | 5,251.0 | 591.5 |
| Other comprehensive income: | ||
| Items that are or may be reclassified to profit or loss | ||
| Other comprehensive income, net of tax | (2,043.6) | 1,994.5 |
| Total comprehensive income for the year | 3,207.4 | 2,586.0 |
| Earnings per share | ||
| Basic and diluted (Naira) | 2.43 | 0.35 |
Consolidated and separate statement of financial position
| In millions of naira | FY 2023 | FY 2022 |
| Cash and cash equivalents | 6,577.6 | 4,749.7 |
| Trade and other receivables | 756.2 | 1,064.7 |
| Intercompany receivables | – | – |
| Prepayment | 320.9 | 592.5 |
| Investment securities | 433.0 | 621.6 |
| Total current assets | 8,087.7 | 7,028.4 |
| Investment securities | 16,348.4 | 16,330.1 |
| Investment in associates | 31,592.4 | 29,711.2 |
| Investment in subsidiaries | – | – |
| Property and equipment | 3,640.7 | 3,827.4 |
| Intangible assets | 98.6 | 90.4 |
| Right-of-use asset | 73.4 | 75.5 |
| Defined benefit plan asset | 0.0 | 0.2 |
| Total non-current assets | 51,753.6 | 50,034.8 |
| Total assets | 59,841.3 | 57,063.2 |
| LIABILITIES | ||
| Other liabilities | 4,727.9 | 5,286.8 |
| Borrowings | 14,301.0 | 14,079.0 |
| Current tax liabilities | 659.5 | 93.9 |
| Lease Liabilities | 27.1 | 26.0 |
| Retirement benefit obligation | – | – |
| Total current liabilities | 19,715.5 | 19,485.6 |
| Retirement benefit obligation | 133.9 | 125.7 |
| Provisions | 405.7 | 405.7 |
| Deferred tax liability | 122.7 | 238.9 |
| Total non-current liabilities | 662.3 | 770.3 |
| Total liabilities | 20,377.8 | 20,255.9 |
| EQUITY | ||
| Share capital | 1,102.3 | 1,102.3 |
| Other reserves | 1,930 | 3,974 |
| Retained earnings | 36,431 | 31,731 |
| Total equity | 39,464 | 36,807 |
| Total liabilities and equity | 59,841 | 57,063 |
Glossary of terms
Operating profit margin is operating profit divided by total revenue.
EBITDA margin corresponds to EBITDA divided by total revenue.
Profit before tax corresponds to EBIT minus net finance (cost)/income and plus share of profit of associates and joint venture using the equity method.
Effective tax is income tax expense divided by profit before income tax.
Profit before tax margin corresponds to profit before tax as a % of revenue.
Return on equity corresponds to net profit reported to total equity.
Return on assets corresponds to net profit reported to total assets.
Forward-looking statements
Certain statements in this document may constitute forward-looking information or forward-looking statements under applicable law (collectively “forward-looking statements”). Forward-looking statements are statements that relate to future events, including the Company’s future performance, opportunities, or business prospects. Any statements that express or involve discussions with respect to expectations, forecasts, assumptions, objectives, beliefs, projections, plans, guidance, predictions, future events or performance (often, but not always, identified by words such as “believes”, “seeks”, “anticipates”, “expects”, “continues”, “may”, “projects”, “estimates”, “forecasts”, “pending”, “intends”, “plans”, “could”, “might”, “should”, “will”, “would have” or similar words suggesting future outcomes) are not statements of historical fact and may be forward-looking statements.
By their nature, forward-looking statements involve assumptions, inherent risks, and uncertainties, many of which are difficult to predict and are usually beyond the control of management, which could cause actual results to be materially different from those expressed by these forward-looking statements. Undue reliance should not be placed on these forward-looking statements because the Company cannot assure that the forward-looking statements will prove to be correct. As forward-looking information addresses future conditions and events, they could involve risks and uncertainties including, but are not limited to, a risk with respect to general economic conditions, regulations and taxes, civil unrest, corporate restructuring and related costs, capital and operating expenses, pricing and availability of financing and currency exchange rate fluctuations. Readers are hereby cautioned to note the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.