The Nairobi Securities Exchange has announced a 22% growth in profit before tax for the half year period to June 30th to 218.7 million from Ksh178.9 million driven by improved revenues and cost management.
Profit after tax increased from Ksh127.9 million to Ksh178.6 million as a result of growth in earnings and tax benefit applicable following the listing of the company last year.vTotal income increased to Ksh401.1 million from Ksh353.2 million, representing a growth of 14%.
This was as a result of improved levies from the equity market and increased income from our data vending and post trade services, the NSE management said. Interest income increased to Ksh44.2 Million from Ksh30.7 Million, a growth of over 100%, as a result of prudent investment of the company’s internally generated funds.
Total assets increased by 66% to Kshs.1.89 Billion from Kshs. 1.14 Billion as a result of additional capitalisation of the company and growth in retained earnings.
NSE chief executive Geoffrey Odundo said the strong financial performance was achieved despite the macroeconomic challenges that affected not only Kenya, but broader African economies. “Turnover in equity trading remained flat during the half year largely impacted on by the introduction of capital gains tax in the early part of the year and the potential introduction of transaction levy on marketable securities,” said Mr Odundo.
In the bond market turnover declined by 17% year on year impacted on by the rising interest rates which continue to erode the valuation of these securities. “We are working closely with our stakeholders to review tax regime that continues to impact negatively on our market,” he said.
“We are set to launch our Derivatives Market, Real Estate Investment Trusts (REITS) and Exchange Traded Funds (ETF), all with an aim of broadening our product offering and deepening our capital market while further strengthening our position as the financial services hub for East and Central Africa”.
The NSE has also commenced the upgrade of the Automated Trading System (ATS) and expects to complete it in 2016, further enhancing its capability to support the trading of our new and existing products.
On the outlook for the next half of the year Mr Odundo said the Bourse remains optimistic on economic growth which will impact on investments and trading in listed securities.
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