The Nairobi Securities Exchange has reported a 4.5% drop in Profit After Tax of Ksh 305.6 Million versus Ksh 320 Million posted a year earlier as result of the reduced income tax rate.
There was a 13.6% drop in profit before taxation of Ksh 381.5 million versus Ksh 441.8 million reported in 2014 as the drop is mainly due to the decline in turnover in the equity and bonds markets.
Highlights
Total assets increased by 13.8% from Kshs. 1,685 million in 2014 to Kshs. 1,918 million in 2015 as a result of increased profitability.
Total income decreased by 1.7% from Kshs. 821.9 million in 2014 to Kshs. 808.3 million in 2015. This was driven mainly by the 3% decrease in equity turnover from Kshs. 431 billion in 2014 to Kshs. 419 billion in 2015.
In the same period, secondary trading activity in the fixed income market declined by 39.7% from Kshs. 1,012 billion in 2014 to Kshs. 610 billion in 2015. The decrease was as a result of the introduction of Capital Gains Tax that had a negative effect on trading activity in the bond and equity markets.
During the year, the NSE invested seed capital of Kshs. 20 million, Kshs. 100 million and Kshs. 10 million towards the NSE Clear Limited, the NSE Derivatives Settlement Guarantee Fund and the NSE Derivatives Investor Protection Fund respectively.
Similarly the rise in interest rates and volatility of the currency impeded performance of the market. Other income also declined by 36.1% from Kshs. 141 million in 2014 to Kshs. 90 million in 2015.
Interest income improved by 153% from Kshs. 39.5 million in 2014 to Kshs. 101 million in 2015 owing to a focused investment strategy by the group.
Administrative expenses increased by 15.1% from Kshs. 389.5 million in 2014 to Kshs. 448.3 million in 2015 owing to the organization restructuring and development of new products.
See a screen shot from the FY Statement
Dividend & Bonus Issue
The directors recommend the payment of first and final dividend for 2015 of 0.49 shillings per ordinary share, this represents an increase of 29% compared to the dividend paid for 2014.
They also recommend bonus issue of 1 new ordinary share for every 3 fully paid ordinary shares
Dear Investor, Please; Download NSE Kenya Full Year 2015 Results.pdf
