Home ECONOMY Decline in trading at the NSE push its net earnings to KSh 80.2 Million.

Decline in trading at the NSE push its net earnings to KSh 80.2 Million.

by biasharadigest

A significant decline in trading activities at the Nairobi Securities Exchange (NSE) in 2019 pushed down its full-year net earnings to KSh 80.2 Million compared to KSh 190.7 Million earned in 2018. The firm’s pre-tax profit declined to KSh 104 Million from KSh 241 Million.

NSE’s revenue dropped to KSh 567.4 Million from KSh 626.2 Million, resulting in a fall in total income from KSh 782.4 Million to KSh 715.6 Million.

NSE’s Balance Sheet recorded a marginal increase of 1 percent to reach KSh 2.24 Billion.

Administrative expenses went up by 12 percent to reach KSh. 625 Million due to a one-off staff restructuring cost of KSh. 52 Million.

During the period under consideration, the bourse upgraded its automated trading system and launched the derivatives market. Both systems increased the NSE’s amortization and depreciation expenses by KSh 11.7 Million.

In its outlook, Directors at the NSE acknowledge the new challenge posed by COVID-19 pandemic, urging investors to anticipate more volatility in the near term.

The Directors recommend the payment of a first and final dividend for the year 2019 of 80 cents per ordinary share compared to 40 cents in 2018. The dividend is subject to shareholders’ approval at the Annual General Meeting, scheduled for date yet to be announced.

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