NGX Group Profit Nearly Doubles to ₦14.7bn in Nine Months, but Third-Quarter Earnings Slip as Costs Surge

NGX Group's nine-month profit after tax rose 86% to ₦14.69bn on record transaction fees, but third-quarter profit fell 7% as personnel costs doubled and tax rose.

Nigerian Exchange Group Plc (NGX Group), operator of Nigeria's stock exchange, nearly doubled its profit in the first nine months of 2026, according to unaudited results released after its board approved them on Oct. 20. Profit slipped in the third quarter, however, as staff costs more than doubled and the tax charge rose.

Profit after tax for the nine months ended Sept. 30 rose 86.4% to ₦14.69 billion from ₦7.88 billion a year earlier. Revenue climbed 79.8% to ₦27.26 billion. Profit before tax grew 83.3% to ₦20.58 billion.

In the third quarter alone, profit after tax fell 7.1% to ₦4.33 billion from ₦4.66 billion, even though revenue rose 36.4% to ₦9.66 billion. Operating profit slipped 3.6% to ₦4.25 billion.

Transaction fees were the engine of the nine-month result. They more than doubled, up 112.4% to ₦20.68 billion, and made up about 76% of group revenue, against 64% a year earlier. Listing fees rose 24.4% to ₦3.73 billion, and other fees, which include annual charges from brokers, dealing licences and membership, rose to ₦663 million from ₦195 million.

Not every line grew. Treasury investment income slipped 3.4% to ₦2.07 billion, market data income fell 6.7% to ₦1.55 billion, and other income fell 16.9% to ₦2.31 billion, partly because of a ₦603 million net foreign-exchange loss. Third-quarter listing fees fell 10% to ₦1.35 billion.

The trading boom reflects a strong equity market. The NGX All-Share Index was up 56.79% year-to-date as of July 31, and a Mansa Markets summary put it at 245,911.13 on Oct. 20, with market capitalisation at ₦159.67 trillion.

Personnel expenses were the main drag. They rose 106.9% to ₦3.38 billion in the third quarter, from ₦1.63 billion a year earlier, and equalled about 84% of the entire first-half bill of ₦4.03 billion. For the nine months, personnel costs rose 72.4% to ₦7.40 billion. Other operating expenses rose 26% in the quarter to ₦2.40 billion, with a ₦565 million jump in general expenses.

The company's statements do not explain the increase. The balance sheet offers a clue: accrued expenses, which include staff allowances and long-term incentives, rose 45.8% to ₦6.32 billion since December.

Total operating costs rose 62.6% in the quarter, outpacing the 26.6% growth in income. The cost-to-income ratio rose to 58.5% from 45.5%, and the operating margin narrowed to 41.5% from 54.5%. Over nine months, the cost-to-income ratio improved to 49.7% from 52.3%.

Tax also weighed on the quarter. The charge rose 35% to ₦1.50 billion, taking the effective rate to 25.7% from 19.2%. The tax note lists a development levy of ₦171 million in the quarter, while the police trust fund, tertiary education and information technology levies that appeared a year earlier are absent.

NGX Group's share of profit from equity-accounted investees rose 69.6% to ₦5.72 billion over the nine months, about 28% of pre-tax profit. Most of that came from its 43.52% stake in Central Securities Clearing System Plc (CSCS), which contributed ₦5.71 billion, up from ₦3.95 billion. NG Clearing, in which NGX Group holds 27.7%, added a small profit of ₦4 million, after a ₦574 million loss share a year earlier.

The group also reported no finance cost, against ₦709 million in the first nine months of 2025.

Earnings per share came to about ₦5.00 on the 2.94 billion shares now in issue, against about ₦2.68 a year earlier on the same share count. These are our calculations, as the statements do not report earnings per share.

Net cash from operating activities rose 163.5% to ₦9.55 billion. The group paid ₦8.23 billion in dividends, up from ₦4.41 billion. The cash flow statement classifies dividends paid within investing activities, so the reported ₦10.54 billion net investing outflow includes that payment along with ₦10.08 billion of net purchases of investments.

Cash and cash equivalents fell 36.8% since December to ₦1.61 billion, as money moved into investment securities, which rose 28.4% to ₦35.70 billion. Total assets grew 11.4% to ₦79.11 billion, and equity rose 10.6% to ₦61.07 billion. Investment securities and investments in associates together make up about 88% of total assets.

Shareholders approved a one-for-three bonus issue on April 29, creating 734.9 million new shares and lifting share capital to ₦1.47 billion with no change to total equity. NGX Group had earlier declared an interim dividend of N1.30 per ordinary share for the six months ended 30 June 2026.

The nine-month figures build on a strong first half. NGX Group reported profit before tax up 170% to ₦14.76 billion and profit after tax up 146% to ₦10.36 billion. Group Managing Director Temi Popoola said at the time that the first-half results showed "the strength and scalability of NGX Group's business model," according to the company's release. That means the third quarter added about ₦4.3 billion of profit after tax to the first half's ₦10.4 billion.

The results suggest the group is highly sensitive to market turnover, since transaction fees account for three-quarters of revenue. Sustaining the year's earnings will depend on trading volumes, new listings and whether costs stabilise after the third-quarter jump. The company has not provided guidance, and management did not comment on the third quarter in the statements.

The statements were signed by Mr. Popoola and Group Chief Financial Officer Bayo Opatade. They are unaudited and are prepared under IAS 34. The company's full-year audited accounts will give the final picture.

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