Nairobi Securities Exchange(NSE) Group Plc recorded a net profit of KSh 132.5 Million in 2021, a drop of 21% from KSh 167 Million in 2020.
According to audited financial statements for 2021, NSE reported a Profit before Tax of KSh 210 Million from KSh 218 Million in 2020, representing a decline of 4%.
Equity turnover stood at KSh 137 Billion from KSh 148 Billion, which was occasioned by reducing equity trading volumes due to the reallocation of capital to fixed-income assets. This, in turn, led to a reduction in equity trading levies from KSh 356.8 Million for the twelve months of 31st December 2020 to KSh 329.7 Million in 2020.
Bonds turnover increased by 38% to a historical high of KSh 956 Billion for the twelve months ended 31 December 2021 as compared to KSh 691 Billion during the same period in 2020.
Due to the exchange’s active treasury management, interest income increased by 24%, from KSh85.1 Million in 2020 to KSh105.7 Million in 2021. The company’s data business recorded a good performance increasing from KSh 36.8 Million in 2020 to KSh 52.4 Million, attributed to a proactive institutional sale strategy.
Administrative expenses increased by 7% from KSh 467.2 Million in 2020 to KSh 500 Million in 2021.
NSE’s balance sheet size shrunk marginally by 4% from KSh 2.31 Billion in 2020 to KSh 2.2 Billion as at 2021 as a result of a write-down of the firm’s fixed assets and payment of a special dividend at the close of the year. Current liabilities stood at KSh 113 Million at the close of 2021 and included a dividend payable of KSh 67 Million.
The NSE begun to show signs of reduced profitability when it released the 2021 half-year financial results where net profit declined to KSh 77.3 Million at the end of June 2021 from KSh 110.6 Million in June 2020.
In its 2022 Outlook, the NSE said the Russia and Ukraine conflict has resulted in an unexpected global impact on Kenya, given the importance of these two nations as producers of energy and agricultural produce. Following this, global investors have taken a cautious approach to investments leading to low turnover experienced in 2022.
“The retail sector is a key focus for us in 2022. In this regard, we have developed initiatives to support interest from the retail sectors, key among them being point for shares and day trading of shares,” said the NSE Board in a statement.
The Annual General Meeting (AGM) of the Nairobi Securities Exchange Plc will be held on 3rd June 2022.
The NSE Board of Directors has recommended the approval of a Second Special dividend of KSh 0.50 per share resulting in a total Special dividend of KSh 1.00 per share (inclusive of the KSh 0.50 cents paid in December 2021) and a final dividend of KSh 0.40 per share, making a total dividend of KSh 1.40 per share compared to KSh 0.53 per share in 2020.
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