NGX Group declares N1.30 interim dividend as H1 profit jump...

Nigerian Exchange Group (NGX Group) Plc has declared an interim dividend of N1.30 per ordinary share after posting a record first-half performance, with profit before tax surging 170 per cent to N14.76 billion, driven by robust trading activity, higher listing fees and stronger contributions from its investee companies.

The Group’s unaudited results for the six months ended June 30, 2026, filed with the Nigerian Exchange Limited, showed revenue rose by 118 per cent to N17.60 billion from N8.08 billion in the corresponding period of 2025, while total income increased by 96 per cent to N19.34 billion.

Profit after tax climbed by 146 per cent to N10.36 billion from N4.22 billion a year earlier, reflecting stronger operating leverage as revenue growth significantly outpaced the rise in operating expenses.

The Board approved an interim dividend of N1.30 per ordinary share of 50 kobo each, subject to applicable withholding tax. The Register of Members will close on July 30, while shareholders whose names appear on the register at the close of business on July 29, 2026, will qualify for payment scheduled for August 5, 2026.

Chairman of NGX Group, Alhaji Umaru Kwairanga, said the interim dividend reflected the strength of the Group’s first-half performance and confidence in its long-term growth prospects.

“The Board’s approval of an interim dividend of N1.30 per share reflects the strength of NGX Group’s first-half performance and our confidence in the Group’s long-term prospects,” he said.

Group Managing Director and Chief Executive Officer, Mr Temi Popoola, said the results underscored the strength and scalability of the Group’s business model.

“Our first-half results demonstrate the strength and scalability of NGX Group’s business model,” Popoola said, adding that the Group remained focused on deepening market liquidity, expanding investor participation, accelerating technology-enabled products and building a more diversified financial market infrastructure business.

The impressive earnings were largely driven by transaction fees, which surged by 169 per cent to N13.34 billion from N4.96 billion, reflecting increased trading volumes and heightened investor activity on the Nigerian Exchange during the period.

Listing fees also rose by 59 per cent to N2.38 billion as more companies accessed the capital market for listings and fundraising, while technology income increased by 19 per cent to N447.86 million.

Operating profit grew by 155 per cent to N10.62 billion as improved operating leverage enabled earnings to expand faster than operating costs.

A major contributor to profitability was the Group’s share of profit from equity-accounted investees, which rose by 130 per cent to N4.14 billion, driven mainly by the improved performance of Central Securities Clearing System Plc (CSCS), reinforcing the importance of NGX Group’s strategic investments to overall earnings.

Transaction fees accounted for approximately 76 per cent of total revenue during the period, underlining the close relationship between the Group’s financial performance and activity levels in the Nigerian equities market.

The balance sheet also strengthened during the six months, with total assets increasing to N75.87 billion from N71.05 billion at the end of December 2025.

The asset growth was supported largely by investments in associates valued at N34.64 billion and long-term investment securities worth N24.42 billion.

Cash and short-term investment securities stood at N9.34 billion against current liabilities of N13.07 billion, while total liabilities remained relatively modest at N15.38 billion.

Shareholders’ equity increased to N60.49 billion from N55.20 billion at the end of 2025, representing about 80 per cent of total assets and highlighting the Group’s strong capital base, low leverage and sound financial position.

The results mirror the sustained rally in the Nigerian capital market during the first half of 2026, with stronger market liquidity, increased trading activity and improved investor participation boosting the Group’s earnings.

The 170 per cent increase in pre-tax profit, significantly ahead of revenue growth, also points to improved operational efficiency and disciplined cost management.

The stronger contribution from CSCS further demonstrates the growing importance of NGX Group’s investment portfolio following recent reforms to the clearing house’s fee structure, while the interim dividend declaration signals management’s confidence in sustaining the current earnings momentum despite continued investments in technology and market development.