Nairobi Securities Exchange (NSE) posts 21% drop in net profit as costs rise

The Nairobi Securities Exchange (NSE) has posted a 21% drop to Sh132 million in net profit for the financial year ended December weighed down by higher costs and taxes which offset an increase in revenues.

The NSE posted a profit of Sh167.9 million the previous year.

“Administrative expenses increased by 7% from Sh467.2 million in 2020, to Sh500 million in the period under review,” said NSE.

“The increase was as a result of exceptional provisions resulting from International Financial Reporting Standards (IFRS) adjustments in our asset holdings and additional tax charges.”

The NSE whose trading commissions are its main source of income recorded a 6.62 jump in income to Sh714.2 million in the review period.

Despite the profit slump, the NSE board declared a second special dividend of Sh0.50 cents per share resulting in a total special dividend of Sh1.00 per share (inclusive of the Sh0.50 paid in December 2021) and a final dividend of Sh0.40 per share, making a total dividend of Sh1.40 per share.

In 2020 it paid a total dividend of Sh0.53 per share.