NSE’s 2017 net profit up 18%

The Nairobi Securities Exchange (NSE) on Monday reported a growth in profit after tax of 18% from Ksh 184 million in 2016 to Ksh 216 million in 2017, in the face of a challenging business environment characterised by prolonged drought, heightened political activity and slow credit growth.

Total income increased by 6% from Ksh 717 million in 2016 to Ksh 757 million in 2017. Market performance was buoyant as equity trading volumes increased by 22% from Ksh 5.8 billion in 2016 to Ksh 7.1 billion in 2017, whilst equity turnover increased 17% from Ksh 294 billion in 2016 to Ksh 343
billion in 2017.

The Group also prudently managed its costs during the year through optimisation and automation of its processes, which led to a marginal decrease in costs of 2% leading to an improved cost to income ratio of 66% from 68% in 2016. The Group’s performance ratios were on a positive trajectory with a
return of assets at 10.4% and return on equity at 11%.

Speaking during the results announcement, the Chief Executive of NSE Geoffrey O. Odundo noted: “The Group delivered positive numbers on the back of a challenging economic year for the country. We launched a number of new products and services demonstrating that our growth strategy is resonating well with our stakeholders and that we continue to execute correctly. Our highly competent employees, clear strategy and strong financial position make me confident in NSE’s future development.”

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NSE says it remains committed to delivering value to its shareholders through broadening its product offering and deepening the Kenyan capital market while further strengthening its position as the financial services hub for East and Central Africa. The outlook for 2018 is positive driven by a good macroeconomic environment, improved rainfall and increased infrastructure investments.

In line with this, the Group will continue to focus on delivery on its 2015 – 2019 strategy which is also in line with our aspiration of stimulating and supporting a vibrant and growing capital market in Kenya.