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Market Digest Nigeria

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Nigerian Stock Exchange Posts N27.45million Profit in One Year

Market Digest Nigeria

The Nigerian Stock Exchange, NSE, has released its audited financial statements for the year ended 31st December 2016 ahead of its 56th Annual General Meeting on Monday, September 25, 2017, at the Event Center, Stock Exchange House, in Lagos.

The meeting will commence with the presentation of the Audited financial statements which showed that the local bourse closed the 2016 financial year with a modest profit after tax of N27.45 million. The financial statements also reveal that the total income to the group declined 33 percent to N4.46 billion as investors reacted to prolonged macroeconomic uncertainty.

The Exchange’s top line income streams were impacted during the year, being transaction fees which fell 37 percent to N1.63 billion and listing fees which declined by 41 percent to N813 million. This culminated in a negative year-end performance for The Exchange of N599 million.

The NSE CEO, Mr Oscar Onyema, in his comments on the results noted that the NSE Group demonstrated resilience through the economic and market downturn. He said the group’s profitability was further evidenced by a low debt capital structure and liquid balance sheet, adding that as a reassuring indication of the NSE’s ability to fund its strategic growth ambitions and remain competitive going into the future.” He said the total income of the Group which declined 33 percent to N4.46 billion was as a result of investors’ reaction to prolonged macroeconomic uncertainty.

For the Exchange, he said “Top line income streams were impacted during the year, being transaction fees which fell 37 percent to N1.63 billion, and listing fees which declined by 41 percent to N813 million. This culminated in a negative year-end performance for The Exchange of N599 million.”

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Onyema, however, noted that “These figures mask some encouraging strategic shifts in our business, as Management intensified efforts to diversify the NSE’s revenue streams. “We saw the strongest results of this in our market services income, which has grown by 63% since we embarked on our new five-year strategy in 2014, rising from less than 3% of The Exchange’s total revenue mix to 9% (N415Mn) in 2016. “This growth is a direct result of our commitment to flexibly meet our customers’ evolving needs for data and information products.”

The NSE’s total assets as at December 31, 2016, stood at N22.79Bn, with approximately N9.73Bn (43%) held in liquid assets and an accumulated fund of N19.31Bn, to close the year with a sound liquidity position and strong.

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