…Interest payments on debt hit bottom-line
The Nigerian Exchange Group (NGX), is struggling in its core operations as the exchange posted an operating loss of N1.32 billion for the 2022 financial year.
NGX only managed to post an after-tax profit of N698 million, down 68% from 2021 levels after the addition of N2.2 billion in dividends received from the Central Securities Clearing System Plc or (CSCS).
NGX now owns 44.18% of CSCS after increasing its equity stake in the securities clearing firm in 2022.
CSCS is Nigeria’s Central Securities Depository (CSD) licensed to carry on the depository, clearing and settlement of all transactions in the Nigerian Capital Market.
Interest expense on borrowings of N2.1 billion up 100% from zero in 2021, was a major hit on the bottom-line, as the NGX loaded up on debt to finance its CSCS acquisition.
In its June 2022 financial statement, NGX said the jump in borrowings from zero in 2021 to N14.52 billion in June 2022: “represent loan to finance strategic investment.”
The Nigerian Exchange Groups (NGX), personnel expenses rose by 13.4 percent to N3.66 billion in 2022, despite its poor operating results.
The remuneration paid to its 23 management staff (excluding pension and reimbursable allowances), increased by 13% to N854 million, equivalent to N37.13 million per management staff, MoneyCentral’s calculations show.