Nairobi Securities Exchange (NSE)’s total income increased by 4% in the six months ending 30 June 2017 despite a challenging business environment characterised by high inflation rates and the unrelenting credit slump.
The total income increase from Ksh 334.3 million in the six months ended 30 June 2016 to Ksh 346.8 Million for the six months to 30 June 2017, was driven mainly by an 11% increase in equity turnover from Ksh 73.6 billion for the six months ended 30 June 2016 to Ksh 82 billion for the six months ended 30 June 2017.
However, profit before tax decreased by 6% from Ksh 106.6 million for the six months ended 30 June 2016 to Ksh 99.7 million for a similar period in 2017, while profit after tax reduced by 5% from Ksh 81.96 million for the six months ended 30 June 2016 to Ksh 77.77 million for a similar period in 2017.
Income from equity transactions levy increased by 11% from Ksh 176.7 million for the first six months in 2016 to Kshs. 196.8 million recorded in a similar period in 2017 owing to an increase in share prices despite the number of trades being 15% lower than in 2016.
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“The first half of the year saw the return of a positive investor sentiment to the bourse with an increase in equity turnover against the same period in 2016,” said Chief Executive of NSE Geoffrey Odundo. “Similarly, the NASI rose by 25.3% while the NSE 20 appreciated by 29.1%. In the first half of this year the Exchange has carried out various public education and outreach initiatives with the intention of increasing both local and foreign investor participation.”
Income from the bond transactions levy declined by 9% from Ksh 18.4 million for the six months to June 2016 to Ksh 16.7 million for the period to June 2017. Interest income declined by 9% from Ksh 51.8 million for the six months ended 30 June 2016 to Ksh 47.1 million for the six months ended 30 June 2017 due to lower interest rates in 2017 due to the interest rate capping regulations that came into effect in the second half of 2016.
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Total assets increased marginally from Ksh 2.01 billion as at 31 December 2016 to Ksh 2.02 billion as at 30 June 2017.
Mr Odundo added: “ In 2017 we continued with our product diversification strategy, delving into the mobile and fintech space through the launch of M-Akiba (in partnership with the Government and other stakeholders) and added a new product segment namely; the Exchange Traded Funds segment which allow investors to spread their risk, diversify their portfolio and have ease of purchase and exit.”
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