The Nairobi Securities Exchange recorded a 32% increase in income in 2014, driven by an increase in equity turnover from Ksh311 billion the previous year to Ksh431 billion. This growth represents an upward adjustment of full-year financial results to Ksh821.9 billion in 2014 from 622.7 billion recorded the year before.
“Our strong financial performance in 2014 was buoyed by a favourable economic environment in line with the Exchange’s strategy to manage its expenditure while focusing on business development and diversification of revenue streams,” said NSE Chief Executive Mr Geoffrey Odundo. “This had a direct impact on our operating income specifically our transaction levies that rose by 36% and our annual listing fees, which rose by 6% in comparison to 2013.”
Mr Odundo said bourse will this year seek to grow its business through the launch of new markets and strengthening existing business lines. Secondary trading activity in the fixed income market rose to Ksh1 trillion billion from Ksh914 billion. Profit before tax increased by Ksh 62.32 million in line with Compound Annual Growth Rate (CAGR) since 2011.
The NSE projects sustained growth in the current financial year, driven by a thriving middle class, progressive urbanisation and further listings on Main Investment Market Segments (MIMS) given the huge investor interest from the larger East Africa and the West African region.
The NSE also intends to benchmark with the Johannesburg Stock Exchange in launching derivatives markets.
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