By Etaarifa Contributor
The Nairobi Securities Exchange (NSE) has announced a 32 percent increase in total income for the year 2014; from Ksh.622.7 million in 2013 to Ksh.821.9 million in 2014. This was driven by the 39 per cent increase in equity turnover from Ksh.311 billion in 2013 to Ksh.431 billion in 2014.
In the same period, secondary trading activity in the fixed income market rose by 11 per cent from Kshs. 914 billion in 2013 to Kshs. 1,012 billion in 2014. The NSE 2014 full year financial results were released today at a briefing that marked the Exchange’s inaugural public announcement since its self-listing on the Main Investment Market Segment (MIMS) of the bourse last year.
Profit before tax increased by 16 per cent or Kshs. 62.32 million. “Our strong financial performance in 2014 was buoyed by a favorable economic environment in line with the Exchange’s strategy to manage its expenditure while focusing on business development and diversification of revenue streams. This had a direct impact on our operating income specifically our transaction levies which rose by 36 per cent and our annual listing fees which rose by 6 per cent in comparison to 2013,” said Geoffrey Odundo, NSE’s Chief Executive Officer.
Following the self-listing of the NSE after de-mutualisation, the bourse’s shareholder base has grown to over 15,000 from previous 24 owners comprising of 22 stockbrokers, the Kenyan Government and Investors Compensation Fund. Its share capital therefore increased by Ksh.754 million after the capitalization of bonus shares worth Ksh.490 million (at a par value of Kshs. 4 per share) and the issuance of 66 million new shares worth Ksh.264 million during the Initial Public Offer.
The bourse is expected to admit new market players this year through the Growth and Enterprise Market Segment (GEMS) and introduction of new products such as the Real Estate Investment Trusts (REITs), derivatives and Exchange Traded Funds (ETFs). “The bourse will put more pressure this year on business development through the launch of new markets and will look to improve its already existing business lines by running aggressive educational and marketing campaigns” added Mr.Odundo.
The management recommended a dividend of Ksh0.38 per share.