A trader monitors stocks at the Nairobi Securities Exchange. FILE PHOTO | NATION
Nairobi Securities Exchange Plc’s net earnings
for full year ended December 31 rose 17.56 per cent largely on
increased commissions from trading activities and cost management
measures, the self-
listed firm announced on Monday.
The firm’s profit stood at Ksh216.25 million ($2.1 million) compared with Ksh183.96 million ($1.9 million) in 2016.
Earnings
from trading activities climbed 10.47 per cent to Ksh582.34 million
($5.8 million), helping grow total income to Ksh757.03 million ($7.5
million) in 2017 from Ksh717.19 million ($7.1 million) a year earlier.
“This
performance was as a result of improved trading in the bond and equity
markets which registered a growth of one per cent and 17 per cent,
respectively,” NSE said in an audited financial statement.
“The Group also prudently managed its costs during the year through optimisation and automation of its processes.”
Operating
costs edged up a marginal 2.64 per cent to Ksh500.17 million ($5
million), resulting in an improved cost to income ratio – a measure of
operational efficiency – of 66 per cent from 68 per cent in 2016.
The stock market in 2017 rebounded from a
two-year bear run, which started around March 2015, to grow by 16.5 per
cent year-year as measured by the indicative NSE-20 Share Index, which
tracks performance of blue chips.
The
growth, which shrugged off impact of a biting drought in the first half
and prolonged electioneering period in second half, was largely helped
by recovery in banking stocks on expectations of a review of the
September 2016 interest controls law.
The NSE directors
have recommended a first and final dividend payout of Ksh0.30 per
share, a slight increment from Ksh0.27 last year, subject to approval at
an annual general meeting slated for May 30.
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