The Nairobi Securities Exchange (NSE) has announced a 32% increase in total income for the year 2014, from Kshs 622.7 million in 2013, to Kshs 821.9 million in 2014. This was driven by the 39% increase in equity turnover from Kshs 311 billion in majorly by the 39% increase in equity turnover from Kshs. 311 billion in 2013 to Kshs. 431 billion in 2014.
In the same period, secondary trading activity in the fixed income market rose by 11% 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% or Kshs. 62.32 million in line with a 43.24% Compound Annual Growth Rate (CAGR) since 2011. Following the self-listing of the NSE, its share capital increased by Kshs 754 million- after the capitalization of bonus shares worth Kshs. 490 million (at a par value of Kshs. 4 per share) and the issuance of 66 million new shares worth Kshs. 264 million during the Initial Public Offer.
Speaking during the briefing Mr. Geoffrey Odundo, Chief Executive of NSE said, “Our strong financial performance in 2014 was buoyed by a favourable 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% and our annual listing fees which rose by 6% in comparison to 2013. 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.”
