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NGX Holds Webinar On Empowering Responsible Investing Through Data Metrics And ESG Integration

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NGX Holds Webinar On Empowering Responsible Investing Through Data Metrics And ESG Integration

Olushola Okunlade Writes

Nigerian Exchange Limited (NGX), in partnership with Global Reporting Initiative (GRI) Africa, and Principles for Responsible Investment (PRI), has announced to hold a webinar tagged Empowering Responsible Investing through Data Metrics and ESG Integration’, scheduled to hold on Wednesday, 29th June at 11:00 am-12:30 pm WAT.

As part of the Exchange’s initiatives to foster the growth of long-term sustainable finance, the webinar will drive conversations on how ESG data plays a key role in investment decisions. 

The session will also deepen investors, companies, market regulators, and practitioners’ knowledge in understanding ESG metrics and data in order to make informed choices.  

Register now for free: https://bit.ly/ngx_erid

Capital Market

NGX Group Releases Its Unaudited Results For Half Year Ended 30 June 2022

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NGX, SEC Strengthen Alliance to Further Market Development

Nigerian Exchange Group (NGX Group) Reports 138.3% Growth in Gross Earnings to N4.2 billion for the Half Year Ended 30 June 2022

Olushola Okunlade Writes

Nigerian Exchange Group Plc (NGX Group) has announced its unaudited results for the half year ended 30 June 2022.

Group Financial Highlights 1

Thousands of Naira (N)HY 2022HY 2021% ∆
Revenue3,823,2541,590,257140.42%
Other income392,481178,717119.61%
Gross earnings4,215,7351,768,974138.32%
Personnel expenses(1,354,529)(1,066,821)-26.97%
Depreciation and amortisation(256,937)(176,391)-45.66%
Operating expenses(2,331,066)(702,943)-231.62%
Total expenses(3,942,532)(1,946,155)-102.58%
Expenses (% of gross earnings)93.52%  110.02%n/m
Operating profit/(loss)273,203(177,181)n/m
Operating profit/loss margin6.48%-10.02%n/m
Share of profit-equity accounted for investees949,967699,06635.89%
EBITDA530,140(790)n/m
EBITDA margin12.58%-0.04%n/m
Profit before minimum tax1,223,170521,885134.38%
Minimum tax 
Profit before income tax1,223,170521,885134.38%
Profit before income tax margin29.01%29.50%n/m
Income tax expense(403,003)(72,227)557.97%
Effective tax rate32.95%13.84%n/m
Profit for the year820,167449,65882.40%
Profit after tax margin19.45%25.42%n/m
    
Total assets39,758,81424,867,83159.88%
Total equity22,490,78721,938,2552.52%
Total liabilities17,268,0272,929,576489.44%
    
Return on equity (%)3.65%2.05%160 bps
Return on assets (%)2.06%1.81%25 bps

Commenting, Mr. Oscar N. Onyema OON, the Group Managing Director/Chief Executive Officer, said: “In 2021, we took strategic steps to reorganise our business by laying the foundation for the rebirth of our franchise as we became a fully-fledged for-profit making company with a clear focus on maximizing resources and improving stakeholder returns. Our performance in the first half of 2022 is a testament to our ability to deliver long-term value. We recorded impressive growth in our top line to provide a profit before tax of N1.22 billion despite the peculiar challenges inherent in our operating environment.

Our goal remains to sustain our position as a leading integrated market infrastructure group in Africa, by diversifying our revenue streams, and identifying and investing in new businesses. We remain focused on building formidable businesses through broader and deeper involvement in every sphere of the capital market value chain through informed investments in profitable verticals and enhanced risk management practices, without losing sight of emerging opportunities in unrelated businesses within the Sub-Saharan African region”.

Group Financial Performance Review

· Gross earnings recorded a significant growth of 138.3% to N4.22 billion from N1.77 billion as of June 2021 benefitting primarily from a 140.4% growth in revenue (91% of gross earnings), and 119.6% growth in other income (9% of gross earnings).

· Revenue growth of 140.4% (N2.23 billion) to N3.82 billion in June 2022 from N1.58 billion recorded in June 2021 was driven by:

o   165.1% growth in treasury investment income (26.6% of revenue) to N1,017.4 million in June 2022 relative to N383.7 million in the comparative period in 2021 driven largely by relatively higher yields on the Group’s treasury bills, bonds, and fixed deposit investments.

o   198.4% growth in transaction fees (60.7% of revenue) to N2,320.7 million in June 2022 from N777.7 million recorded in June 2021 due to a significant increase in trading activities in Nigerian Exchange Limited (“NGX” or “The Exchange”).

o   18.6% increase in listing fees (9.5% of revenue) to N363.8 million in June 2022 from N306.8 million in June 2021 buoyed by improved listing on the Exchange in the first half of 2022 relative to the first half of 2021.

o   Rental income[2] (1.4% of revenue) earned from NGX Real Estate lease of office floor spaces recorded a 60.5% increase from N32.2 million in June 2021 to N51.7 million.

o   15.4% decline in other fees (1.8% of revenue) to N69.7 million in June 2022 from N82.4 million in June 2021. This represents rental income from the trading floor, annual charges from brokers, dealing license, and membership fees earned by the Group.

· 119.6% increase in other income (9% of gross earnings) driven primarily by:

o   376.5% improvement in market data income (56% of other income) to N220.94 million from N46.3 million reported in June 2021 which is made up of technology income, other sub-lease income, and penalty fees.

o   15.99% growth in other operating income (31% of other income) from N105.6 million in June 2021 to N122.5 million in June 2022.

· Total expenses grew by 102.6% from N1.9 billion in June 2021 to N3.9 billion in June 2022 primarily driven by a 231.6% growth in operating expenses (59.1% of total expenses) to N2.3 billion from N702.9 million in June 2021. This was large as a result of a finance cost (57% of operating expenses) of N1.3 billion related to a term loan taken during the period. Personnel expenses (34.4% of total expenses) also grew by 27% from N1.01 billion in June 2021 to N1.35 billion during the period under review.

· Operating profit of N273.2 million in June 2022 from an operating loss of N177.2 million in June 2021, resulting from 138.3% growth in gross earnings.

· Profit before income tax grew by 134.4% to N1.22 billion in June 2022 from N521.9 million in the corresponding period in 2021 due to impressive growth in the top line which was more than sufficient to mitigate the impact of the increases in key expense lines.

· Despite an increase in the effective tax rate to 32.95% relative to 13.84% in June 2021, profit after income tax grew by 82.4% to N820.2 million from N449.7 million. This resulted in a decline in profit after tax margin to 19.45% from 25.42% recorded in June 2021.

· Total assets rose by 59.9% to N39.8 billion from N24.9 billion in Dec. 2021, driven primarily by 91.3% growth in investment in associates to N31.99 billion from N14.8 billion in Dec. 2021, and 116.8% growth in Cash and Cash equivalent to N4.3 billion from N2.2 billion in Dec. 2021.

· Total liabilities recorded a 394.7% increase from N3.8 billion in Dec. 2021 to N18.6 billion as a result of a N14.5 billion term loan used to facilitate the increase in investment in select associates.

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Capital Market

NAHCO, Union, Sterling, Fidelity, Unity Banks, Others Lead Top 10 Gainers In The Week Ended

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NAHCO, Union Bank, Sterling Bank, Fidelity Bank, Unity Bank, And Others Lead Top 10 Gainers In The Week Ended

NGX ASeM, NGX Growth Indices Closed Flat, As Market Capitalization Depreciated By 3.10% 

…As Market Capitalization depreciated by 3.10% to close the week at 50,370.25 and N27.163 trillion 

Olushola Okunlade Writes

Equity recorded on Friday, July 29th, 2022 was a total turnover of 1.546 billion shares worth N16.289 billion in 23,873 deals traded this week by investors on the floor of the Exchange, in contrast to a total of 917.190 million shares valued at N14.803 billion that were exchanged hands last week in 19,513 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.192
a billion shares valued at N5.978 billion traded in 11,996 deals; thus contributing 77.11% and 36.70% to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 102.969 million shares worth N236.618 million in 858 deals. The third place was the Consumer Goods Industry, with a turnover of 102.937 million shares worth N2.616 billion in 3,167 deals.

Trading in the top three equities namely International Energy Insurance Plc, Transcorp
Hotels Plc and Zenith Bank Plc (measured by volume) accounted for 798.900 million
shares worth N2.602 billion in 3,110 deals, contributing 51.69% and 15.98% to the total
equity turnover volume and value respectively.

ETP: A total of 35,532 units valued at N1.715 million were traded this week in 26 deals compared with a total of 196.303 units valued at N6.346 million transacted last week in 34 deals.

BONDS: A total of 94,006 units valued at N100.359 million were traded this week in 18 deals compared with a total of 79,914 units valued at N83.072 million transacted last week in 31 deals.

The NGX All-Share Index and Market Capitalization depreciated by 3.10% to close the
week at 50,370.25 and N27.163 trillion respectively.

Similarly, all other indices finished lower with the exception of The NGX Sovereign Bond
Index which appreciated by 0.08% while, The NGX ASeM and NGX Growth indices closed
flat. (See a summary of index movements in the table below)

Eleven (11) equities appreciated in price during the week, lower than nineteen (19) in the
previous week. Fifty-three (53) equities depreciated at a price higher than thirty-six (36) in
the previous week, while ninety-two (92) equities remained unchanged lower than one
hundred and one (101) equities recorded in the previous week.

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DMO Commemorates The Listings Of Eurobonds And Sukuk On NGX

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DMO Commemorates The Listings Of Eurobonds And Sukuk On NGX

Olushola Okunlade Writes

The Debt Management Office (DMO) has leveraged the Closing Gong ceremony of Nigerian Exchange Limited (NGX) to commemorate the listing of a Triple-Tranche $4billion Eurobonds, $1.25billion Eurobonds, and the N250billion Sukuk on the Exchange.

The event which took place on Thursday, 28 July 2022, featured the management of DMO led by Ms. Patience Oniha, Director General, and other facilitators of the transactions.

Temi Popoola, CEO, of NGX, in his remarks, assured stakeholders of the Exchange’s capacity to be a veritable platform for listings and trading instruments. Speaking on the renewed focus of the NGX brand, he said, “We realise that we also need to diversify our business model by attracting new and young Nigerians to the capital market. Events like this are important to us because it gives us the opportunity to diversify the narrative of the Nigerian capital market and we will do everything we can to attach the necessary visibility to make sure that these instruments can trade efficiently, just as we continue the story around the market.”

On the important role the DMO plays in the Nigerian story, Mr. Temi Popoola commended the DG for making the Debt market transparent to all Nigerians and for making it easy to see the journey and the developments happening in the Nigerian debt story.

DMO Commemorates The Listings Of Eurobonds And Sukuk On NGX
Left-Right: Chief Executive Officer (CEO), Central Securities Clearing System (CSCS) Plc, Mr. Haruna Jalo-Waziri; CEO, Nigerian Exchange Limited (NGX), Mr. Temi Popoola; Director General, Debt Management Office (DMO) Nigeria, Ms. Patience Oniha; CEO, Chapel Hill Denham, Mr. Bolaji Balogun; Director, Financial Markets, Central Bank of Nigeria (CBN), DJ Yanfa; Director, Market Development, DMO Mr. Monday Usiade; Chief Executive, Stanbic IBTC Capital; Mr. Funso Akere; Group Executive Director, Vetiva Capital Management Limited, Mr. Damilola Ajayi; and Divisional Head, Business Support Services, NGX, Mrs. Irene Robinson-Ayanwale; during the Closing Gong Ceremony to commemorate the listing of the Triple-Tranche USD4.00 billion Eurobonds, USD1.25 billion Eurobonds and the N250 Billion Sukuk on NGX.

Speaking on the impact of these listings, Ms. Patience Oniha, Director General, DMO said the collaborations with NGX were in furtherance of the development of the Nigerian economy as the issuance of the securities is being used to fund government projects. “The Sukuk transaction which began in 2017, gradually improved with the first two transactions being N100BN and the last one now at N250 Billion. With all the work market operators are doing, people are now getting more familiar and comfortable with these transactions. At DMO, we are supporting the government and creating more investment opportunities just as we are also collectively supporting securities transactions at NGX.”

DMO had listed on NGX, the Triple-Tranche US$4.00 Billion Eurobonds consisting of 6.125% US$1.25BN NOTES DUE SEP 2028; 7.375% US$1.5BN NOTES DUE SEP 2023; and, 8.25% US$1.25BN NOTES DUE SEP 2051, on Monday 31 January 2022. Other securities listed on the Exchange are the N250.00 Billion 10-year 13.00% Ijarah Sukuk Due 2031 and the 8.375% US$1.25BN Eurobond DUE MAR 2029, on Tuesday, 5 July 2022 and Thursday, 7 July 2022 respectively.

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