The Nairobi Securities Exchange has announced its results for the financial year ended 31 December 2017 where it has reported a 16.9 percent y/y growth in earnings per share (EPS) to Sh0.83.
EPS growth was mainly attributed to increase in equity turnover of 17 percent y/y which was higher than anticipated due to the extended election period.
Costs stayed relatively flat with a 2 percent y/y increase to Sh500 million. As a result, the rise in income “trickled down t the bottom line. Additionally, the company reported a return on equity of 11 percent.
Going forward, NSE plans to introduce the derivatives market and promote newly launched products such as ETFs and REITs.
“We don’t expect these to have a major impact on the company’s financials in the coming year as the initial offerings are not expected to be very large. Therefore, the existing income streams will continue to drive the revenue growth. Additionally, we are not aware of any large IPO or bond offering that may catalyse the existing income generation and therefore we expect a large part of the growth in the upcoming year to be driven by economic growth and an increased turnover on the existing instruments.”
The Board has recommended a dividend of Sh0.30 per share in contrast to Sh0.27 per share in 2016.