Nairobi Securities Exchange Reports 34% Increase in Profit After Tax to Kshs. 18.4 Million for FY 2023

Published On: August 14, 2024Company: Nairobi Securities Exchange Limited (NSE.ke)
What was the impact of the global and domestic fiscal challenges faced in the year 2023 on Nairobi Securities Exchange Plc?
Despite facing economic challenges both domestically and internationally in 2023, the Nairobi Securities Exchange Plc (NSE) demonstrated resilience by posting a 34% increase in profit after tax. The board adapted to these challenges by adopting a diversified strategy geared towards growing revenue from non-trading sources, resulting in the growth of alternative revenue streams which acted as a cushion against market volatility. Furthermore, they diversified their product offerings, listing the first Real Estate Investment Trust (REIT) and Sukuk Bond on the NSE.

Summary

  • The Nairobi Securities Exchange Plc (NSE) Annual Integrated Report for the year 2023 indicates the commitment of the Board to offer a world-class trading facility.
  • The report states that 2023 was a challenging year both domestically and globally, with rising interest rates, inflation, and adjustments in forex rates across major markets providing significant challenges.
  • The business showed resilience in response to these challenges, posting a 34% increase in profit after tax from Kshs. 13.7 million in 2022 to Kshs. 18.4 million in 2023.
  • The Board adopted a diversified strategy to grow revenue from non-trading sources to cushion the business from market volatility. This strategy resulted in the growth of alternative revenue streams.
  • The NSE diversified its product offerings, with the admission of the first Real Estate Investment Trust (REIT) and Sukuk Bond on the NSE.
  • The Board proposed a dividend payout of Kshs. 0.16 per share for the financial year 2023, indicating a grim outlook on NSE’s performance in 2024. It plans to accelerate business recovery and performance through strategies like listing more companies, both private and state-owned, on the NSE to enhance market liquidity.
  • A notable accomplishment was the partial advanced settlement of Kenya’s June 2024 Eurobond in early 2024, which positively influenced market sentiments and driven an injection of confidence.
  • The new appointed CEO, Frank Mwiti, thanked the shareholders and the board for their trust in his leadership abilities. He intends to focus on revenue growth, cost efficiency, capital allocation, cross listings, and the company’s human capital in the future.

Useful links

About Nairobi Securities Exchange Limited (NSE.ke)

Nairobi Securities Exchange (NSE) Limited operates as a securities exchange in Kenya offering an automated platform for the listing and trading of various securities such as debt, equity and derivative securities. It provides clearing and settlement services for transactions in derivative securities through its subsidiary, NSE Clear Limited. It also acts as a central counterparty in derivative securities transactions. Kenya is one of the fastest growing economies in sub-Sahara Africa and NSE plays a vital role in this growth by encouraging savings and investments as well as helping local and international companies access cost-effective capital. The securities exchange operates under the jurisdiction of the Capital Markets Authority of Kenya; is a full member of the World Federation of Exchange; a founding member of the African Securities Exchanges Association (ASEA); the East African Securities Exchanges Association (EASEA) and the Association of Futures Market. Nairobi Securities Exchange is a partner exchange in a SSE initiative led by the United Nations. Nairobi Securities Exchange Limited is listed on the Nairobi Securities Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.