SBG Securities profit rises 17.6pc on advisory fees

SBG Securities, an investment bank, grew its net profit by 17.6 per cent in the first six months of the year driven by an increase in advisory fees amid flat growth in expenses.

The firm, a subsidiary of Stanbic Holdings, reported a net profit of Sh32.8 million in the half-year period ending June compared to Sh27.9 million in the same period last year.

Total income rose by 5.2 per cent to Sh178.2 million against Sh169.5 million in the same period last year.

Most of the growth in total income came from advisory or consulting fees and interest income — indicating the company had invested in fixed-income assets.

The fees grew nearly three-fold to Sh13.8 million compared to Sh4.7 million in the same period in the previous year while interest income was up by 43.7 per cent to hit Sh26.9 million compared to Sh18.7 million in the first half of last year.

Brokerage commissions income was down by 6.8 per cent to Sh135.1 million relative to Sh144.9 million which the company managed to earn in the same period last year.

Total expenses only grew by 0.9 per cent during the period to reach Sh128.5 million against Sh127.4 million in the same period last year.

The total shareholders’ funds stood at Sh310.14 million, up from Sh280.13 million in the same period last year.

The funds exceeded the minimum of Sh250 million — required for the operation of an investment bank — by over Sh60 million.