NGX Group releases 2021 Q3 results

Following its demutualisation and listing of shares on the Main Board of its Market, The Nigerian Exchange Group Plc (NGX) published its nine-month results, showing a 15.9 percent growth in revenue to N4.39 Billion, from N3.78 billion in the same period of 2020. The performance was partly driven by a one-off nominal fee income of […]

Following its demutualisation and listing of shares on the Main Board of its Market, The Nigerian Exchange Group Plc (NGX) published its nine-month results, showing a 15.9 percent growth in revenue to N4.39 Billion, from N3.78 billion in the same period of 2020.

The performance was partly driven by a one-off nominal fee income of N558.18 million recorded in the third quarter, as transaction fees, the core revenue line, remains relatively flat at N1.79 Billion, a reflection of weak trading activity on the NGX. The non-recurring nominal fees recorded in the third quarter represented 12.7 percent of overall revenue reported for the nine-month period.

 Despite higher portfolio size, treasury income waned 12.3 percent to N887.06 million in the nine months. For the nine-month period, treasury income represented 20.22 percent of NGX’s revenue, from 26.69 percent in the corresponding period of 2020.

 With penalty income growing 210 percent year-on-year in the third quarter alone, putting the gross income from penalties for the nine-month period of 2021 at N123.23 million, compared to N26.35 million in 2020, the NGX may be sending a strong signal that it is no longer business as usual for its participants, as the probable conflict of interest characterised by its mutual ownership has been broken with the demutualisation. Hence, NGX dealing members may have to brace up for new vista of compliance.

The NGX recorded a profit of N1.51Billion for the nine-month period ending September 2021, growing 10.55 percent, when compared to the N1.37Billion profit reported in the same period of 2020. The profitability was driven by a N1.02 billion share of profit from an associate, likely to be Central Securities Clearing System Plc, in which NGX maintains 29.19 percent equity interest.

The shares of NGX trades at 19.51x Price-to-earnings multiple and 1.20x Price-to-Book value ratio. The stock shed 0.2% to close at N20.00 after a total of 2.06million units traded.