Nigerian Exchange Group Plc reported a pre-tax profit of N5.98 billion in its Q1 2026 results, representing a 140.5% increase from N2.49 billion recorded in the corresponding period of 2025, driven largely by higher transaction fees and strong contributions from equity-accounted investees.
This is according to its Q1 2026 financial results for the period ended March 31, 2026.
The Group recorded a significant revenue growth of 102.5% to N7.22 billion from N3.56 billion in Q1 2025, supported mainly by increased trading activity across the Exchange.
Key highlights (Q1 2026 vs Q1 2025):
- Revenue: N7.22 billion, up 102.5% YoY
- Operating profit: N3.95 billion, up 84.1% YoY
- Operating expenses: N3.85 billion, up 58.7% YoY
- Pre-tax profit: N5.98 billion, up 140.5% YoY
- Post-tax profit: N4.09 billion, up 93.9% YoY
- Total assets: N76.33 billion, up 7.5%
- Total liabilities: N17.65 billion, up 11.4%
- Total equity: N58.68 billion, up 6.4%
Driving the numbers:
An analysis of the Group’s performance shows that the primary driver of revenue growth was a sharp increase in transaction fees, which rose significantly to N5.80 billion from N2.01 billion in the prior year, reflecting heightened trading activity and improved market participation.
- Listing fees also contributed to revenue growth, rising by 9.6% to N734 million, indicating sustained listing activity during the period.
- The strong top-line performance pushed operating profit higher by 84.1% to N3.95 billion, as revenue growth outpaced the increase in operating costs.
- However, operating expenses rose by 58.7% to N3.85 billion, driven by higher personnel costs and other operating expenses, highlighting growing cost pressures as the business scales.
- Pre-tax profit growth was further supported by a significant increase in share of profit from equity-accounted investees, which rose to N2.03 billion.
Despite the strong earnings performance, tax expense surged by over 400% to N1.89 billion, moderating the conversion of pre-tax profit into net income. Nonetheless, post-tax profit increased by 93.9% to N4.09 billion.
Balance sheet position:
Total assets grew by 7.5% to N76.33 billion, supported by increased investments in securities and higher investments in associates.
- Investment securities rose significantly during the period, while investment in associates also increased, driven by stronger earnings contributions.
- Total liabilities increased by 11.4% to N17.65 billion, largely due to a rise in current tax liabilities, reflecting the higher tax burden recorded during the quarter.
- Total equity rose by 6.4% to N58.68 billion, supported by growth in retained earnings following improved profitability.
- Cash flow from operating activities rose significantly by 137.5% to N3.56 billion, supported by improved earnings and favourable working capital movements.
- Cash flow from investing activities was negative at N3.50 billion, driven by increased investments in financial assets.
Despite this, the Group maintained a stable cash position, with cash and equivalents at N2.65 billion at the end of the period.
Market reaction:
The stock of Nigerian Exchange Group Plc was seen rising by about N5.00 in intraday trading on Thursday, April 30, 2026, to around N160 per share, approximately 3.2% above its ex-dividend and bonus-adjusted price.
- The stock had earlier closed at N155.00 on April 29, 2026, reflecting a 1.4% gain from the previous session.
- Year-to-date, the stock has gained about 121% from its opening price of N70.00, ranking among the top-performing equities on the Exchange.
The Group currently ranks among the mid-tier stocks on the Exchange with a market capitalization of approximately N406 billion.
What you should know:
NGX Group declared a final dividend of N2.00 per ordinary share of 50 kobo each, marking a total dividend of N3.00 in addition to the N1.00 interim which was earlier paid on November 18, 2025.
- This is in addition to a 1-for-3 bonus distribution for the financial year ended December 31, 2026.
- The impressive returns to shareholders followed a robust profit growth with profit before tax of N15.55 billion, representing a 14.26% increase from N13.61 billion recorded in 2024.
- Profit after tax rose 5.63% to N10.48 billion up from N9.92 billion in 2024.
- The strong Q1 2026 performance suggests that the Group may be on course to sustain profit growth, driven by robust trading activity, higher transaction fees, and improved contributions from associates.
- However, rising operating expenses and increased tax liabilities present potential risks to sustained profitability.
The Group’s ability to manage costs, optimize tax exposure, and sustain trading momentum will be critical to maintaining its growth trajectory and delivering long-term value to shareholders.
