NSE profit down 12pc to Sh191m on higher costs

Nairobi Securities Exchange (NSE) Plc #ticker:NSE has registered 11.8 per cent decline in net profit to Sh190.7 million for the full year ended December 2018, weighed down by increased expenses.

The decline was despite total income increasing by four per cent to Sh782 million, mainly driven by a two per cent rise in equity turnover to Sh351 billion and 29 per cent rise in bond turnover to Sh1.13 trillion.

During the period, administrative expenses increased by 13 per cent from Sh496 million in 2017 to Sh560 million.

NSE management said this was mainly due to a salary review alignment and revaluation deficit on the valuation of the NSE building.

“In 2019, the NSE will strengthen its operational efficiency through optimisation of its resources and management of costs,” the firm said.

Despite the decline in bottom-line, directors have recommended payment of a first and final dividend of Sh0.49 per ordinary share comprising of an ordinary dividend of Sh0.29 per share and a special dividend of Sh0.20 per share.

This is a 63 per cent rise from Sh0.30 paid in 2017.

“The payment is subject to withholding tax, where applicable and will be paid by 30 July 2019 to members on the register at the close of business on 30 May 2019,” said NSE.