Stock Exchange makes N3.8 billion record high profit
The emergence of the Nigerian Stock Exchange (NSE) as the third best performing stock in the world last year has impacted on its performance for the 2017 financial year, resulting to an operating surplus after tax or Profit After Tax (PAT) of N3.79 billion.
The NSE made this known at the presentation of its results for the year ended December 31, 2017 during the 57th yearly general meeting held in Lagos on Thursday.
Specifically, the exchange’s operating surplus after tax represents a growth 13,712 per cent increase over 2016 modest operating surplus after tax of N27.45 million, indicating the highest operating surpluses recorded in the last five years.
The results showed a total income of N8.30 billion for the Group and N3.82 billion surplus before tax for the year ended 31 December 2017. This represents an 86 per cent increase in gross earnings when compared to the N4.46 billion achieved in 2016. Surplus before tax grew by 5,629 per cent in the same period.
NSE’s All-Share Index grew by 42.3 per cent to emerge as the third best performing stock market in the world, which was characterised by a solid financial performance, growth in market activities and renewed interest in the Nigerian capital market.
The Exchange Group comprises four subsidiary companies- Naira Properties Limited, Coral Properties Plc, NSE Consult Limited and NSE Nominees Limited.
The Exchange also has interests in NG Clearing Limited and Central Securities Clearing System (CSCS) Plc as joint venture and associate company respectively.
The President of the Exchange, Abimbola Ogunbanjo, said that the year 2017 saw a pick-up in global growth, driven by improvements in global oil prices, sustained growth in investment and trade and stronger consumer confidence.
He added that buoyed by improvements in the macro environment, the NSE’s management has successfully executed a number of ambitious operational and strategic initiatives, saying that demutualisation of the Exchange remained a key strategic priority as a critical precursor to a more dynamic, open and efficient capital market.
According to Ogunbanjo, NSE has deployed a new four-year corporate strategy that will reposition us as a more investor friendly and customer centric exchange hub in Africa.
“With this new strategy, we are poised to deliver superior performance for our multi-faceted stakeholders especially issuers and investors who continue to access our market to raise and save capital respectively,” he said.
Also, the Chief Executive Officer of NSE, Oscar Onyema, said the positive performance, amid significant headwinds witnessed over the past two years, affirms the resilience of the market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa.
According to Onyema, focus on executing its robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins the improved performance.
He added that the NSE is on track to become a more agile and flexible demutualised securities exchange, adding that the exchange remains hopeful that the demutualisation bill will be signed into law in this year.
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