FMDQ OTC Posts N7.2bn Profit before Tax

Following the diversification and expansion of the business to incorporate clearing and settlement services, FMDQ Securities Exchange Plc recorded improved performance in 2018, showing that profit before tax soared by 1,960 per cent to N7.21 billion, admitting 78 debt securities valued at N1.03 trillion for the financial year ended December 31, 2018, up from 50 securities worth N236.87 billion in 2017.

This was announced by the Chairman of FMDQ Securities Exchange Plc, Dr. Joseph Nnanna, during the 7th annual general meeting (AGM) held in Lagos.

According to Nnanna, the Federal Government of Nigeria’s Green Bond and Sukuk worth N110.69 billion, the Lagos State Government Series 11 Tranche A and B bonds valued N85.14 billion were among the securities listed during the review period. He added that 60 Commercial Papers (CPs), 15 bonds and three funds were listed and quoted on the platform in 2018.

The chairman further disclosed that the exchange last year engaged in strategic collaborations to promote the Nigerian debt capital market as a source for long term finance as well as develop the Nigerian green bond market.

Nnanna added that the exchange completed the registration of its central clearing and settlement house and also launched a proprietary market system, a fully integrated multi-asset trading system with post trade services’ capabilities.

He said FMDQ Derivatives Market Development project was also launched to concentrate corporate effort targeted towards developing a more vibrant derivatives market in Nigeria.

Presenting the company’s financial performance, Nnanna said the company’s revenue jumped by 423.81 percent to N13.25 billion, while   profit before tax soared by 1,960 per cent to N7.21 billion following the diversification and expansion of the business to incorporate clearing and settlement services.

Nnanna revealed that turnover from trading activities on the platform rose by 22 per cent to N182.62 trillion in 2018.

Speaking on the 2019 outlook, he said that the company would focus on strengthening further, the clearing and settlement franchise following the successful operationalisation of its wholly owned central clearing house (CCH) subsidiary, FMDQ Clear in 2018.

Also commenting, Managing Director/CEO, FMDQ OTC Securities Plc, Mr. Bola Onadele, said the strategic horizon for FMDQ in 2019 was the integration of its markets with external markets, with a focus on consolidating operations across the full value chain of the financial markets.

He stated further that the exchange would operate a fully diversified and integrated financial market infrastructure group, offering execution and settlement opportunities to market stakeholders.

“In line with FMDQ’s market integration agenda, 2019 will see full operationalisation of the dealing member specialist market to reduce fragmentation and further consolidate the market, as well as foster retail participation in the fixed income space”,Onadele noted.