Higher costs drive down NSE half year profit

The Nairobi Securities Exchange (NSE) has posted a 24.4 per cent drop in half year profits to Ksh.108 million on higher costs.

Administrative expenses in the period for the trading firm were up 9.6 per cent to Ksh.258.8 million from Ksh.236.1 million ending with the impact on earnings.

Meanwhile, the NSE booked greater interest and other income to offset a 5.4 per cent decline in trading revenues to grow its total operating income marginally to Ksh.366.2 million from Ksh.365.1 million in June 2020.

NSE revenues slumped to Ksh.276.5 million from Ksh.292.4 million as equity turnover in the first half of 2021 fell by 20.7 per cent to Ksh.70.4 billion ($641.2 million).

Nevertheless, the turnover dump came as the equities market registered an upward trajectory following steep declines seen last year following the advent of the COVID-19 pandemic.

Cash generated from the six months operations reduced to Ksh.25 million from Ksh.70.6 million previously.

Meanwhile cash and cash equivalents for the NSE closed the period at Ksh.487.2 million from Ksh.500.3 million last year.

NSE’s earnings per share have declined slightly to 29 cents from 43 cents on the back of the earnings cut.