NSE profit drops 11.8% to Sh190 million

As expenses increased while total comprehensive income declined, the Nairobi Securities Exchange (NSE) posted a profit decline to end the financial year ended December 31, 2018 at Ksh190 million.

The 11.8% year on year decline in profit saw the NSE retreat from the Ksh216 million that was recorded in 2017.

In audited full year results released by the bourse on March 22, the NSE saw an upsurge in revenue which shot up from Ksh607 million to Ksh626 million during the period under review.

Even though total income increased by 4% from Ksh753 million in 2017 to Ksh782 million in 2018, the bourse saw total comprehensive income for the year decline by 14.3% from Ksh218 million the previous year to settle at Ksh187 million.

Administrative expenses also shot up, with 2017’s Ksh495 million topped in 2018 by a Ksh560 million spend.

“These are extracts from the financial statements of the Group which have been audited by PricewaterhouseCoopers and have received an unqualified opinion,” the Board said on Friday.

The results comprise a summary of financial statements which are extracts of the audited financial results of the Group, comprising the Nairobi Securities Exchange Plc (NSE), the subsidiary NSE Clear Limited, the structured entities (the NSE Derivatives Settlement Guarantee Fund and NSE Derivatives Investor Protection Fund) and the interest of the NSE in an associate company.

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Other financial highlights include a 2% increase in equity turnover and a 29% surge in bonds tunrnover as well as a 5% rise in total assets.

“A 2% increase in equity turnover from Ksh343 billion in 2017 to Ksh351 billion in 2018 and bonds turnover which increased by 29% from Ksh872 billion in 2017 to Ksh1.1 trillion in 2018.

“Total assets increased nominally by 5% from Ksh2.1 billion in 2017 to Ksh2.2 billion in 2018”

Looking forward to 2019, the board said its expectations on the economic activities and the general business environment in Kenya are positive.

“The NSE will in the coming year focus on enhancing uptake of its various products. With the broadening of our product offering, companies can now tap into various forms of capital including debt, equity and Real Estate Investment Trusts to raise funds for their businesses.”

NSE also touted its Ibuka program, a 10 month incubation and accelerator program, as well as the M-Akiba retail bond.

The bourse also offered a dividend payout of Ksh0.49 per ordinary share, and announced that its Annual General Meeting (AGM) will be held on May 30 at the Kenyatta International Convention Center (KICC).

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