NSE Half Year results drops to KSh77M from KSh 82M

Nairobi Securities Exchange posted a 6 percent drop in profit for the first half of this year at KSh 77 million down from KSh 82 million in 2016.

It’s  pretax profit was Ksh 99.7 million compared to Ksh 106.6 million in the same period last year, it said.

The drop was on the back of a net effect of a 4 percent y/y increase in total income and an 8 percent y/y increase in operating expenses. Income growth was supported by an 11 percent y/y growth in equity transactions value despite a 15 percent decrease in number of equity transactions.

Interest income fell 9 percent y/y owing to the effect of the rate cap law that was introduced in September 2016 given the firm has invested 73 percent of its free cash in Fixed deposits.

Expense growth was driven by one-off “futures costs”- consultancy fees for derivatives- which increased significantly (+492% y/y) as well as a 2296% y/y increase in costs attributed to M-Akiba, a mobile based government bond.