Business News

NGX Group reports N5.2 billion profit after tax amidst headwinds 

NGX Group Plc has released its full year 2023 financial result posting a profit after tax of N5.250 billion amidst economic headwinds. 

The disclosure was made in the group’s financial report, which was officially released to the Nigerian Exchange Limited and made available to the investing public through Naijaonpoint. 

The group’s profit after tax experienced a substantial surge, marking an impressive 788% increase from N591.509 million recorded in the previous year of 2022.  

Additionally, NGX reported a pre-tax profit of N5.271 billion, indicating a remarkable 636% rise compared to the N1716.116 million reported in the fiscal year 2022. 

These financial outcomes come amid a backdrop of persistent economic headwinds, notably characterized by escalating inflationary pressures that continue to challenge the overall economic landscape. 

In the latest inflation report released by the National Bureau of Statistics (NBS), Nigeria’s inflation rate for January 2024 has surged to 29.90%, marking a significant increase from the 28.92% recorded in the preceding month. 

The data reveals a notable uptick in the headline inflation rate for January 2024 by 0.98% points when juxtaposed with December 2023’s figures.  

Delving into a year-on-year comparison, the inflation rate for January 2023 stood at 21.82%, showcasing a considerable leap of 8.08% points by January 2024, underscoring an escalated headline inflation rate over the same period in the preceding year.  

Moreover, a closer examination on a month-on-month basis illustrates that the headline inflation rate for January 2024 ascended to 2.64%, outpacing the 2.29% observed in December 2023 by 0.35% points. 

This increment elucidates a heightened rise in the average price level for January 2024 relative to the increase noted in December 2023, highlighting the growing inflationary pressures within the nation’s economy.  

The group’s total income rose to N11.803 billion, representing a 57.39% increase from the N7.499 billion posted in FY 2022. 

The key driver of the group’s revenue in the 2023 financial year emanated from the transaction fees, accounting for N4.818 billion as against N3.157 reported in 2022 representing a growth of 52.6%. The segment contributed to 58% of the total revenue of N8.299 billion. 

Also, treasury investment income includes income from Bonds, Treasury bills and fixed deposits followed with N2.141 billion an increase of 5.47% compared to the N2.030 billion generated the previous year, 2022. The income from the investment also contributed 25.79% of the total revenue achieved by the group. 

The Group and Company earn interest income from investment in treasury bills, fixed deposits with commercial banks and bonds.