The Nairobi Securities Exchange reported its Half Year 2017 as operating income grew by 5.9% to Sh 282.6 Million.

The bottom line was affected by increase of administration expenses which were up by 8% leading to a 5.1% decline in net profit to Sh 77.77 Million.

The increase in administrative costs was attributed to costs related to the setting up of new products like the derivatives market, M-Akiba bond and Exchange Traded Funds.

The Nairobi Securities Exchange operating income grows by 5.9% to Sh 282.6 Million. Photo: Sustainable Stock Exchanges

Major Highlights

  • Total income increased by 4% from Kshs. 334.3 Million in the six months ended 30 June 2016 to Kshs. 346.8 Million for the six months to June 2017. This was driven mainly by an 11% increase in equity turnover from Kshs. 73.6 Billion for the six months ended 30 June 2016 to Kshs. 82 Billion for the six months ended 30 June 2017. The 11% increase in levy was affected by a decline in initial listing fees, training fees and management fees of Kshs. 8.5 Million over the same period.
  • Interest income declined by 9% from Sh 51.8 Million for the six months ended 30 June 2016 to Kshs. 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.
  • Income from equity transactions levy increased by 11% from Kshs. 176.7 Million for the first six months in 2016 to Kshs. 196.8 Million recorded in a similar period in 2017 owing to increase in share prices despite the number of trades being 15% lower than in 2016. Income from the bond transactions levy declined by 9% from Kshs. 18.4 Million for the six months to June 2016 to Kshs. 16.7 Million for the period to June 2017.
  • Total assets increased marginally from Kshs. 2.01 Billion as at 31 December 2016 to Kshs. 2.02 Billion as at 30 June 2017.
  • The net cash used in investing activities of Kshs. 298 Million includes cash outflows on investment in fixed deposits of Kshs. 339 Million, capital expenditure of Kshs. 22 Million against interest income received of Kshs. 40 Million and net treasury bill receipts of Kshs. 23 Million.
  • The Board of Directors did not recommend the payment of an interim dividend for the first half of the year 2017.