NSE Profit Jumps Despite a Slowdown in the Economy

The Nairobi Securities Exchange (NSE) has announced its results for the six months ended 30^th June, 2020, in which it recorded a strong performance on the back of a shaky macro-economic environment in Kenya and other global markets.

The group’s profit after tax increased by more than 100% for the six months ending 30^th June to Ksh110.6 million, up from Ksh24.3 million recorded in the same period last year. This was primarily driven by a reduction in administrative expenses as well as an increase in the share of profits of associate investments.

The NSE interest and other investment income increased by 14.8% from Ksh47.2 million to Ksh54.2 million. Income from trading activities grew marginally, recording a 3.6% year on year growth to Ksh220.4 Million up from Ksh212.7 million.

Guided by what it calls a prudent cost optimization strategy, the NSE achieved double-digit reduction in key cost items such as staff and other expenses which dropped 41.7% and 23% respectively. Equally, system-related expenses reduced by a further 5.9% in the period under review.

“The Group’s solid performance in the wake of an extremely challenging operating environment accelerated by the outbreak of a global pandemic, is a testament of the effectiveness of our corporate contingency strategy, the resilience of our business and the confidence of our investors and shareholders in the firm,” said NSE Chief Executive, Mr Geoffrey Odundo.

 Mr Odundo said despite the challenges Covid-19 pandemic has caused in the market, the management is working to ensure it provides value to shareholders, investors and the general public. “We are working with the entire capital markets ecosystem to create and implement innovative solutions to address the new challenges we are facing,” he added.

In the second half of the year, the NSE will continue to implement its business continuity plans which focus on ensuring uninterrupted market availability to investors and remote access by trading participants, cost optimization as well as protecting the health and safety of staff and market players.

The NSE will continue supporting the growth and uptake of all its listed asset classes with emphasis on those that have proved to offer investors lucrative avenues for deployment of capital during this period. The NSE Exchange Traded Funds, Real Estate Investment Trusts as well as the Derivatives Market offer investors unique opportunities to make returns as well as safeguard against capital attrition during this period.

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