AIB, Kingdom feel pinch of NSE bear run

Brokerage houses AIB Capital and Kingdom Securities Ltd became the latest market intermediaries to report sharp drops in half-year earnings as a long bear run on the Nairobi Securities Exchange took a toll on more firms.

AIB Capital reported a net loss of Sh11.7 million for the six months to June compared to the net profit of Sh0.43 million it recorded during a similar period last year.

Kingdom Securities, a subsidiary of Co-operative Bank of Kenya, on the other hand recorded a net loss of Sh4.5 million for the half-year period ended June 30 this year compared to a net profit of Sh3.7 million recorded in a same period last year.

The two brokerage firms say they recorded slumps in earnings from fees and commissions from brokerage activities.

READ: NSE shares tumble hits Kestrel, RenCap’s half-year profits

During the period AIB Capital said it made a 38.2 per cent drop in total income to Sh31.9 million compared to Sh51.7 million it posted a year earlier.

Its brokerage commissions also took a hit with the firm reporting a 52.4-per cent drop to Sh20.9 million in the half-year period compared to Sh44.1 million in a similar period last year.