Despite the challenging environment that impacted on the performance of some of the listed companies, the Nairobi Securities Exchange posted impressive numbers recording a growth in profit after tax of 18% from Kshs 184 million in 2016 to Kshs 216 million in 2017.
The exchange attributes this performance to improved trading in the bond and equity markets which registered a growth of 1 % and 17% respectively. Operating costs for the company during the year fell slightly by 2% leading to an improved cost to income ratio of 66% from 68% in 2016.
Total assets grew by 5% from Kshs 2.0 billion in 2016 to Kshs 2.1 billion in 2017 as a result of improved profitability.
2018 outlook
The company projects good performance in 2018 driven by a good macro-economic environment, improved rainfall and increased infrastructure investments.NSE further notes that they intend to launch the derivatives market this year to facilitate the trading of futures contracts across a variety of asset classes in the Kenyan market.
“The Exchange is witnessing increased interest from potential issuers seeking listing and alternative funding options; and our business development initiatives will be centered on working with our partners in the industry to realize these opportunities.” It said in a statement.
“We are in the process of upgrading our equities trading platform to enhance our availability, support the growth of new products and strengthen our surveillance capacity.”
Dividend
The Directors recommended the payment of a first and final dividend for the year 2017 of Kshs. 0.30 per ordinary share (2016 – Kshs. 0.27 per share). The dividend is subject to shareholders’ approval at the Annual General Meeting.
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