Closing Price: 12.30
Total Shares Issued: 259503194.00
Market Capitalization: 3,191,889,286
FY Revenue 626.191m vs. 607.438m +3.087%
FY Interest income 116.341m vs. 98.569m +18.030%
FY Other income 39.605m vs. 46.711m -15.213%
FY Total income 782.137m vs. 757.718m +3.908%
FY Administrative expenses [560.300m] vs. [495.856m] +12.997%
FY Profit before taxation 240.849m vs. 269.186m -10.527%
FY Profit for the year 190.678m vs. 216.250m -11.825%
Basic and diluted EPS 0.73 vs. 0.83 -12.048%
Total assets 2.218388b vs. 2.108220b +5.226%
Cash and cash equivalents at the end of the year 229.308m vs. 156.030m +46.964%
Ordinary dividend per share 0.29 vs. 0.30 -3.333%
Special dividend 0.20 vs.
Final dividend 0.49 vs. 0.30 +63.333%
KEY AUDIT MATTERS
There are no key audit matters to report.
Total income increased by 4% from Kshs. 753 million in 2017 to Kshs. 782 million in 2018. This was driven mainly by a 2% increase in equity turnover from Kshs. 343 billion in 2017 to Kshs. 351 billion in 2018 and bonds turnover which increased by 29% from Kshs. 872 billion in 2017 to Kshs. 1,125 billion in 2018. Interest income increased by 18% from Kshs. 99 million in 2017 to Kshs. 116 million in 2018 due to prudent management of funds. Other income decreased by 15% from Kshs. 47 million in 2017 to Kshs. 40 million in 2018 mainly due to a reduction in revaluation surplus on investment property in 2018.
Share of profit of associate increased by 64% from Kshs. 12.3 million in 2017 to Kshs. 19 million in 2018 owing to increased profitability.
Administrative expenses increased by 13% from Kshs. 496 million in 2017 to Kshs. 560 million in 2018 mainly due to a salary review alignment and revaluation deficit on the valuation of the NSE building.
This resulted in a decline in the profit for the year by 12% from Kshs. 216 million in 2017 to Kshs. 191 million in 2018.
Total assets increased nominally by 5% from Kshs. 2.1 billion in 2017 to Kshs. 2.2 billion in 2018.
The Group recorded a return on assets of 8.6% and a return on equity of 9.1% in 2018.
OUTLOOK FOR 2019
Our expectations on the economic activities and the general business environment in Kenya are positive going into 2019. The Governments investment in the Big Four Agenda will create new opportunities for businesses to grow. According to the International Monetary Fund (IMF), Kenyas GDP could grow to 6.01% due to improved performance in various sectors, including real estate, tourism, manufacturing, and agriculture.
The NSE will in the coming year focus on enhancing uptake of its various products. With the broadening of our product offering, companies can now tap into various forms of capital including debt, equity and Real Estate Investment Trusts to raise funds for their businesses. We also embarked on the full roll out of the Ibuka program which is an incubation and accelerator platform for providing companies with visibility, capacity building and networking opportunities on a hosted basis. From a product development perspective we envisage to launch the derivatives market this year. The NSE will continue to focus on its innovative strategy and in the coming year deliver its products through more accessible digital channels.
During the year, we intend to support the issuance of the M Akiba retail bond program and in addition promote sustainable financing through issuance of green bonds. In 2019, the NSE will strengthen its operational efficiency through optimisation of its resources and management of costs.
The Directors recommend the payment of a first and final dividend for the year 2018 of Kshs. 0.49 per ordinary share comprising of an ordinary dividend of Kshs. 0.29 per share and a special dividend of Kshs. 0.20 per ordinary share (2017 Kshs. 0.30 per share). The dividend is subject to shareholders approval at the Annual General Meeting. The payment is subject to witholding tax, where applicable and will be paid by 30 July 2019 to members on the register at the close of business on 30 May 2019. Accordingly, the register of members will remain closed for one day on 31 May 2019 for preparation of dividend warrants.
20 MAR 2019 Chugging Along, Nothing but Strong @NSE_PLC
Its a Buy on reverses.
Nairobi Securities Exchange PLC H1 2018 results through 30th June 2018 vs. 30th June 2017
H1 Operating income 351.402m vs. 282.603m +24.345%
H1 Interest income 58.879m vs. 47.125m +24.942%
H1 Total income 430.504m vs. 346.805m +24.134%
H1 Administrative expenses [277.332m] vs. [254.664m] +8.901%
H1 Profit before taxation 167.826m vs. 99.659m +68.400%
H1 Profit for the year 133.886m vs. 77.770m +72.156%
Basic and diluted EPS 0.52 vs. 0.30 +73.333%
Total assets 2.309172b vs. 2.021336b +14.240%
Cash and cash equivalents at the end of the year 122.341m vs. 130.804m -6.470%
Equity and Bonds turnover +32% and +30% to settle at 108.5b and 311b respectively.
+32% increase in equity turnover from 82b to 108.5b
Equity levies 259.9m versus 196.8m
Bond Levies 21.8m versus 16.7m
in the second half of 2018 we will be concluding pilot phase testing of the Derivatives markets
Attractive results. Its a volume game and volumes were up Year on Year.
They have architected the markets and now need to accelerate volumes
Nairobi Securities Exchange PLC FY 2017 results through 31st December 2017 vs. 31st December 2016
FY Operating income 582.338m vs. 527.164m +10.466%
FY Interest income 98.569m vs. 94.766m +4.013%
FY Other income 76.125m vs. 95.255m -20.083%
FY Total income 757.032m vs. 717.185m +5.556%
FY Administrative expenses [500.170m] vs. [487.291m] +2.643%
FY Profit before taxation 269.186m vs. 233.115m +15.473%
FY Profit for the year 216.250m vs. 183.956m +17.555%
FY Total comprehensive income for the year 218.806m vs. 183.754m +19.076%
Basic and diluted EPS 0.83 vs. 0.71 +16.901%
Dividend per share 0.30 vs. 0.27 +11.111%
Total assets 2.108220b vs. 2.013745b +4.692%
Cash and cash equivalents at the end of the year 156.030m vs. 479.359m -67.450%
improved Cost to Income Ratio of 66% from 68% in 2016
we intend to launch the derivatives market this year.
NSE FY17 Results via Kestrel
The 16.9% y/y increase in EPS was predominantly driven by growth in equity turnover (17% y/y) which was higher than expected given the pro-longed election period.
Costs remained relatively flat (2% growth y/y to KES 500m), and therefore growth in income trickled down to the bottom line.
Notably, the company posted an ROE of 11%.
Going forward, the company intends to launch the derivatives market as well as promote newly launched products like ETFs and REITs. We dont expect these to have a major impact on the companys 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 increased turnover on the existing instruments.
The Board recommended a first and final dividend of KES 0.30 per share (2016 KES 0.27 per share).
Strong Earnings. Good Pipeline promises a better 2018.
H1 Operating income 282.603m vs. 266.796m +5.925%
H1 Interest income 47.125m vs. 51.766m -8.965%
H1 Other income 17.077m vs. 15.734m +8.536%
H1 Total income 346.805m vs. 334.296m +3.742%
H1 Administrative expenses [254.664m] vs. [235.782m] +8.008%
H1 Profit before taxation 99.659m vs. 106.652m -6.557%
H1 Profit for the year 77.770m vs. 81.962m -5.115%
Basic and diluted EPS 0.30 vs. 0.32 -6.250%
Total Assets 2.021336b vs. 1.936759b +4.367%
Cash and cash equivalents at the end of the period 130.804m vs. 328.040m -60.126%
No interim dividend
Total Income increased by 4% from 334.3m in the six months ended 30 June 2016 to 346.8m for 6 months to June 2017.
This was driven mainly by an 11% increase in equity turnover from 73.6b to 82b.
Its a volume Game and volumes are trending higher.
FY Revenue 527.164m vs. 663.903m -20.596%
FY Interest income 94.766m vs. 101.010m -6.182%
FY Other income 95.255m vs. 43.344m +119.765%
FY Total income 717.185m vs. 808.257m -11.268%
FY Administrative expenses [487.291m] vs. [448.323m] +8.692%
FY Profit before taxation 233.115m vs. 381.494m -38.894%
FY Profit for the year 183.956m vs. 305.693m -39.815%
EPS (Basic and diluted) 0.71 vs. 1.18 -39.831%
Total assets 2.013745b vs. 1.918235b +4.979%
Cash and cash equivalents at the end of the year 479.359m vs. 28.712m
Dividend per share 0.27 vs. 0.49 -44.898%
We will broaden our product offerings through introduction of products geared towards matching the needs of our Investors such as exchange traded Funds, Derivatives contracts and GDRs
Introduction of a Market Making framework and Securities Lending and borrowing regulations
Highly correlated to Trading volumes and we have been in a Bear Market. I expect a rebound in FY 17.
H1 Operating income 242.579m vs. 314.345m -22.830%
H1 Interest income 51.766m vs. 44.241m +17.009%
H1 Other income 39.951m vs. 42.544m -6.095%
H1 Total income 334.296m vs. 401.130m -16.661%
H1 Administrative expenses [235.782m] vs. [203.458m] +15.887%
H1 Profit before taxation 106.652m vs. 218.744m -51.243%
H1 Profit for the year 81.962m vs. 178.580m -54.103%
EPS (Diluted) 0.32 vs. 0.69 -53.623%
Cash and cash equivalents at the end of the period 328.040m vs. 883.506m -62.871%
Highly correlated to volumes and its been a low volume bear market for the most part.
FY Operating income 616.778m vs. 641.736m -3.889%
FY Interest income 101.010m vs. 39.514m +155.631%
FY Total income 808.257m vs. 821.901m -1.660%
FY Administrative expenses [448.323m] vs. [389.541m] +15.090%
FY Profit before taxation 381.494m vs. 441.811m -13.652%
FY Profit for the year 305.592m vs. 320.041m -4.515%
EPS 1.57 vs. 2.13 -26.291%
Total assets 1.918235b vs. 1.685104b +13.835%
Cash and cash equivalents at the end of the year 444.035m vs. 640.655m -30.690%
Dividends 0.49 vs. 0.38 +28.947%
Bonus share 1 3
This was driven mainly by the three per cent decrease in equity turnover from Sh431 billion in 2014 to Sh419 billion in 2015, said the NSE in a statement.
Its going higher in 2016 and that Prediction is based on an increased smorgasbord of Product, strong Institutional Demand for Exchange Equity.
The Bonus and Dividend Hike will keep it humming along.
H1 Total Assets 1,892.618m vs. 1,143.960m +65.4%
H1 Operating Income 314.345m vs. 300.218m +4.7%
H1 Other Income 42.544m vs. 39.444m +7.9%
H1 Total Income 401.130m vs. 353.198m +13.6%
H1 Profit Before Taxation 218.744m vs. 178.861m +22.3%
H1 Profit After Tax 178.580m vs. 127.881m +39.6%
H1 EPS 0.92 vs. 0.99 -7.1%
an Increase in equity turnover by 6% to 213b for 6 month period
Interest Income also increased by 30.7m or over 100%
The CGT related slow down crimped equity Turnover in Q1 of this H1 reporting period.
This share is a BUY.
Full Year Earnings through 31st December 2014 versus through 31st Dec 2013
Full Year Operating Income 641.736m versus 488.766m
Full Year Other Income 140.651m versus 112.527m
Full Year Total Income 821.901m versus 622.713m +32%
Full Year Profit before Taxation 441.811m versus 379.496m +67%
Full Year Profit After Tax 320.041m versus 262.419m
Full Year EPS 2.13 versus 2.04
Full Year Dividend 38cents a share
Total income +32% was driven majorly by the 39% increase in equity turnover from 311b in 2013 to 431b in 2014
Secondary trading activity in the Fixed Income Market rose by 11% from 914b to to 1012b
Investor interest in Kenya and the broader East African Region remains strong.
The Exchange is on course to launch the derivatives market. Initial products all be single stock and index futures before offering currency based contracts
We expect further listings on the GEMS and new listings of REITS
Good Results. Single digit PE Lots of innovation BUY