Kestrel’s total income grew by 49.8 per cent to Sh333.7 million from Sh222.8 million booked in a similar period last year.
During the period, the brokerage commission rose by Sh89.4 million or 43.3 per cent to Sh295.5 million, while corporate advisory fees more than tripled to Sh14.3 million from Sh4.36 million.
The higher revenue has been driven largely by the firm’s foreign trading desk, at a time when foreign investors have accounted for a larger slice of traded turnover at the NSE even though largely on a net selling basis.
Investment bank Kestrel Capital has recorded a seven-fold jump in net profit to Sh23.6 million for the six months to June 2018, boosted by increased income from brokerage commission and advisory fees.
Kestrel’s total income grew by 49.8 per cent to Sh333.7 million from Sh222.8 million booked in a similar period last year.
During the period, the brokerage commission rose by Sh89.4 million or 43.3 per cent to Sh295.5 million, while corporate advisory fees more than tripled to Sh14.3 million from Sh4.36 million.
The higher revenue has been driven largely by the firm’s foreign trading desk, at a time when foreign investors have accounted for a larger slice of traded turnover at the NSE even though largely on a net selling basis.
In recent years, the Kenyan stock market has been dominated by intermediaries with strong foreign trading desks, which have included Kestrel, Renaissance Capital, SBG Securities and Equity Investment Bank.
In the six months to June, equity turnover at the NSE rose by a third to Sh108.3 billion from Sh82 billion in a similar period last year, pointing to higher commission revenues for most stockbrokers.
Kestrel’s Interest income grew by 22 per cent to Sh11.56 million while other income went up by Sh9.4 million to Sh12.3 million.
However, total expenses jumped 35.3 per cent to Sh293.4 million, hugely driven by direct expenses which grew by 72 per cent (or Sh66.9 million) to Sh159.5 million. SBG Securities, a subsidiary of Stanbic Holdings, has also announced improved earnings for the half-year period.
The firm booked a 17.6 per cent rise in net profit to Sh32.8 million.
Its total income grew by 5.2 per cent to Sh178.2 million majorly driven by growth in advisory fees and interest income.
