The Nigerian Stock Exchange’s total assets has grown from N26.69 billion in 2018 to N29.07 billion for its financial year ended, December 31, 2018.
This was disclosed during the exchange’s 58th Annual General Meeting on Monday where the Audited Financial Statements of The Exchange as at December 31, 2018 and the reports of National Council and Auditors were presented to the members as part of the Ordinary Business of the day.
The Nigerian Stock Exchange, NSE however said that the year 2018 ended with a decline in Group revenues of eight per cent to N7.67 billion.
The president, National Council, Mr. Abimbola Ogunbanjo said that “In line with global markets, our equities market experienced a decline in 2018.
“This trend, however, was counter balanced by the Nigerian Stock Exchange’s delivery of key initiatives for the development of the Nigerian capital market.”
Ogunbanjo said that despite the challenges faced, the Exchange has maintained a focus on transforming and reforming the market to be more efficient throughout.
He explained “We expanded our focus on retail investor activity and in positioning the Exchange to deploy innovation to be agile, offering smart products and services.
“In 2018, we witnessed the Debt Management Office (DMO) list the pioneer N10.69 billion Federal Government of Nigeria (FGN) Sovereign Green Bond, and a N100 billion FGN ljarah Sukuk bond. This further asserted our aspiration as the platform for both the public and private sector to raise and to access capital, encouraging financial inclusion.”
The National Council President said “We made significant progress with the demutualization process, with the demutualization bill now signed into law and assented to by the President.
“The successful completion of this project will ultimately position our market as a significant driver of socio-economic development.”
Strong Financial Performance
The CEO of the NSE, Oscar Onyema said that the NSE sustained a strong financial performance in spite of a myriad of macro-economic challenges including overall weak performance of the global capital market.
Onyema noted that during the year, the Exchange introduced a number of new products and services and grew its asset base from N18.9 billion to N20.9 billion.
Transform the Capital Market
He said that the management would continue to build and transform the Nigerian capital market through leadership and investments in innovation.
On market performance in 2019, onyema said that “We know that our future revenues and net income will continue to be influenced by a number of key domestic and international market forces including pricing, product features and service offerings, regulatory changes relating to market structure and macro environment.
“Our listings revenue stream was the most impacted, as it fell by 21% to N1.4bn. Influenced by the capital market trends within the period, transaction fees also declined to N3.3bn, a 13% drop from last year. The balance sheet remained strong with a 9% growth in total assets as the Group closed 2018 with total assets of N29.1bn, with approximately N4.1bn (14%) held in liquid assets and an accumulated fund of N25.9bn to close the year with a sound liquidity position and strong balance sheet.
“We anticipate volatility in the equities markets in the first half of 2019, but expect enhanced stability post the 2019 elections and an expected return of primary and secondary market activity for the second half of 2019.”
He explained that building on the momentum we have gained so far, NSE would strive to finalise its demutualization process, boost our fixed income market segment and establish our exchange traded derivatives market.
“In order to properly serve our customers, we intend to measure our brand awareness and perception, which will inform our communications and engagement initiatives as we position the NSE Group as a strong, trusted and credible brand.
“We are confident that pursuing these initiatives in 2019 will boost the competitiveness of the NSE at a time when the Nigerian capital market is at an inflection point,” he added.
Meanwhile, Members of the Exchange re-elected Mrs. Catherine Nwakaego Echeozo who retired by rotation, as a member of the National Council.
Members also re-elected Katsina State Investment & Property Development Co. Limited (Represented by Mrs. Fatimah Bintah Bello–Ismail); Fortress Capital Limited (Represented by Mr. Yomi Adeyemi) and Pilot Securities Limited (Represented by Mr. Seyi Osunkeye).