Nigerian Exchange Group Plc (NGX: NGXGROUP) reported an 86.4% year-on-year surge in Profit After Tax (PAT) to ₦14.7 billion for its 9-Month (9M) 2026 operations, powered by intense trading activity across Nigerian capital markets.
Gross revenue expanded 79.8% YoY to ₦27.3 billion, with core transaction fees accounting for 75.8% of top-line earnings.
While full nine-month financial performance demonstrated strong operational momentum—delivering an upgraded Return on Average Equity (ROAE) of 33.7%—the Group recorded a sequential deceleration in the third quarter (Q3 2026).
Quarterly net income dropped 30.9% quarter-on-quarter, squeezed by an 11.3% QoQ contraction in top-line revenue alongside a 23.0% QoQ rise in operating expenditures.
Key Fundamental Drivers & Market Dynamics
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Equities Market Volume Explosion: Core transaction fee revenue expanded 112.4% YoY to ₦20.7 billion, reflecting a 44.0% increase in trading volumes and a 124.1% surge in trading values on the Nigerian Exchange. Broad retail and institutional participation—driven by bank recapitalizations and primary offerings—underpinned trading liquidity.
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Subsidiary Infrastructure Contributions: Income from associate companies jumped 69.6% YoY to ₦5.7 billion. The Central Securities Clearing System (CSCS) Plc contributed 99.9% of associate earnings, while central counterparty clearing house NGClearing Limited returned to profitability, posting a ₦4.3 million profit compared to a ₦573.6 million loss in 9M 2025.
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Asset Allocation & Cash Flow Reinvestment: Strengthened transaction fees drove operating cash flow up 113.8% to ₦13.9 billion (up from ₦6.5 billion in 9M 2025). Management allocated the surplus liquidity primarily into sovereign debt securities, money market assets, and treasury instruments to maximize yield income.
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Operating Expense Scrutiny & Cost Pressures: Total operating expenses rose 56.8% YoY to ₦14.7 billion, propelled by a 74.6% increase in personnel costs and staff benefits. Despite structural inflation pressures, operational leverage lifted the group’s EBIT margin to 50.3% and expanded the PAT margin to 49.7%.
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