By Adedapo Adesanya
The Nigerian Stock Exchange (NSE) recorded a boost in its total assets in the financial year ended December 31, 2018 despite the decline in transaction fees, Business Post reports.
The exchange, at its 58th Annual General Meeting (AGM) held on Monday, September 30, 2019, at the NSE Event Centre, Lagos, said its assets recorded a 9 percent growth, closing the 2018 fiscal year at N29.1 billion.
At the meeting, CEO of the exchange, Mr Oscar Onyema, informed participants that N4.1 billion of the total assets, representing 14 percent, was held in liquid assets and an accumulated fund of N25.9 billion to close 2018 with a sound liquidity position.
However, the exchange recorded a 13 percent decline in transaction fees to N3.3 billion in 2018, mainly influenced by the capital market trends within the period, mostly impacting on the listings revenue stream.
But Mr stressed that the exchange demonstrated resilience in the face of a challenging operating environment closing the year with surplus of N2.70 billion.
“Total revenue declined to 8 percent that is N7.67 billion as investors sought towards more guaranteed investment asset classes in the face of uncertainty. Our listings revenue stream was the most impacted, as it fell by 21 percent to N1.4 billion.
“Influenced by the capital market trends within the period, transaction fees also declined to N3.3 billion, a 13 percent 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 N29.1 billion, with approximately N4.1 billion (14 percent) held in liquid assets and an accumulated fund of N25.9 billion to close the year with a sound liquidity position and strong balance sheet,” he said.
Speaking at the meeting, the President of the National Council of the NSE, Mr Abimbola Ogunbanjo, said, “In line with global markets, our equities market experienced a decline in 2018. This trend, however, was counterbalanced by the NSE’s delivery of key initiatives for the development of the Nigerian capital market.
“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 Ijarah Sukuk Bond.
“This further asserted our aspiration as the platform for both the public and private sector to raise and access capital, encourage financial inclusion and create sustainable value.”
Mr Ogunbanjo also noted that the NSE has expanded its focus on retail investment, positioning the it to deploy innovative and agile smart products and services.
“We made significant progress with the Demutualization process, with the bill now signed into law and assented to the President.
“The successful completion of this project will ultimately strengthen our market as a significant driver of socio-economic development,” he added.
He expressed hope that the NSE will continue to capitalize on new opportunities while taking advantage of recent technological disruptions and seek corporate partnerships in order to maintain a fair and orderly market while delivering sustainable values to its customers and stakeholders.
During the AGM, 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).
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.
Dipo Olowookere