NSE blames lower trading turnover for 5pc net profit drop
A Nairobi Securities Exchange staff (left) attends to a customer at the bourse. The first quarter of last year saw depressed trading numbers due to the uncertainty surrounding the reintroduced capital gains tax. PHOTO | FILE
What you need to know:
Shareholders will receive a dividend of 49 cents per share for the year, up 29 per cent from the pay-out of 38 cents per share made in 2014.
The Nairobi Securities Exchange has recorded a 4.5 per cent decline in net profit to Sh305.6 million for the 2015 financial year.
The NSE has attributed the lower income to reduced trading turnover in the market, which led to a decline in total income to Sh808.3 million from Sh821.9 million in 2014.
Shareholders will receive a dividend of 49 cents per share for the year, up 29 per cent from the pay-out of 38 cents per share made in 2014.
“This was driven mainly by the three per cent decrease in equity turnover from Sh431 billion in 2014 to Sh419 billion in 2015,” said the NSE in a statement.
The first quarter of last year saw depressed trading numbers due to the uncertainty surrounding the reintroduced capital gains tax—which has now been removed by parliament.
The NSE’s expenses rose last year by 15.1 per cent from Sh389.5 million to Sh448.3 million, attributed to additional costs as the exchange launched new products and reorganised its internal structures.
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