The Nigerian Exchange Group Plc (NGXGROUP) reported a significant revenue growth to N24 billion in the 2024 financial year, boosted by Nigeria’s banking recapitalisation drive and fresh listings on the bourse. According to a research note by CardinalStone, the exchange’s revenue structure remained diversified, supported by investment income, transaction charges, and listing fees, which collectively made up nearly 69 per cent of earnings.
The recapitalisation of commercial banks, mandated by regulators, alongside high-profile listings such as Aradel Holdings Plc and Transcorp Power Plc, triggered a surge in market activity. Market turnover recorded a year-on-year growth of 56.3 per cent, fueling a 64 per cent jump in transaction income and a record 397 per cent increase in listing fees in 2024, the report noted.
CardinalStone highlighted that NGXGROUP’s revenue strength now rests more on its core operations than on associate income. Revenue from core businesses doubled to N16.9 billion in FY’24, compared with N8.3 billion in FY’23, reducing reliance on equity investments in CSCS and NG Clearing. The Group also invested N1.4 billion in technology upgrades and market development, facilitating capital raises worth N1.8 trillion by Nigerian banks during the year.
Earnings also benefited from N4 billion in net foreign exchange gains, driven by naira devaluation in 2023 and 2024, although analysts expect this effect to soften due to relative currency stability in 2025. Improved cost management and operational efficiency further boosted performance, with profit before tax rising by 157.3 per cent in 2024.
Looking ahead, NGXGROUP projects N20.8 billion in total income for 2025, reflecting a conservative outlook as FX gains moderate. However, management is targeting an average of five new listings annually and plans to expand product offerings across equities, ETFs, derivatives, and tokenised securities. CardinalStone projects a 12.9 per cent five-year revenue CAGR, with return on equity expected to remain strong at 17.8 per cent, positioning NGXGROUP for sustained long-term growth.
Source: Punch