Stock­bro­kers earn­ings rise

In­dus­try looks up af­ter a lean two years of fall­ing in­come

Business Daily (Kenya) - - FRONT PAGE - Charles Mwaniki cmwaniki@ke.na­tion­media.com

Ma­jor­ity of stock­bro­kers have grown their net earn­ings in the irst half of the year af­ter cut­ting down costs while en­joy­ing higher com­mis­sion from cus­tomer trades.

Ma­jor­ity of stock­bro­kers have grown their net earn­ings in the first half of the year af­ter cut­ting down costs while en­joy­ing higher com­mis­sion from cus­tomer trades.

Dyer & Blair In­vest­ment Bank, Co­op­er­a­tive Bank sub­sidiary King­dom Se­cu­ri­ties and Genghis Cap­i­tal cut losses by 90, 48 and 26.4 per cent re­spec­tively in the pe­riod. SBG Se­cu­ri­ties, a sub­sidiary of Stan­bic Hold­ings, saw its net profit rise ten­fold to Sh27.9 mil­lion.

Kestrel Cap­i­tal, KCB Cap­i­tal and Old Mu­tual Se­cu­ri­ties also grew net earn­ings in the pe­riod on the back of higher com­mis­sions. The fi­nan­cials re­leased so far point to­wards an im­prove­ment in the bot­tom line of the in­dus­try, which has gone through a lean two years of fall­ing in­come.

The fi­nan­cials re­leased so far point to­wards an im­prove­ment in the bot­tom line of in­dus­try

Equities turnover at the NSE was 11.4 per cent higher in the first half of the year at Sh82 bil­lion, com­pared to Sh73.6 bil­lion in a sim­i­lar pe­riod in 2016. “The Kenya equities mar­ket has im­proved year-onyear ev­i­denced by growth in vol­umes and val­u­a­tions de­spite the ex­ist­ing po­lit­i­cal and macroe­co­nomic risks.

No­tably, do­mes­tic in­sti­tu­tional in­vestors have in­creased mar­ket par­tic­i­pa­tion, which has partly driven mar­ket ac­tiv­ity for the last few months,” said Stan­bic Bank chief fi­nance of­fi­cer Abra­ham On­genge when pre­sent­ing the SBG re­sults ear­lier this month.

Dyer cut net loss to Sh6.1 mil­lion in the six months to June, hav­ing made a loss of Sh59.4 mil­lion a year ear­lier. The firm’s brokerage com­mis­sions rose to Sh55.1 mil­lion from Sh46.2 mil­lion, while cut­ting ex­penses from Sh116 mil­lion to Sh113.5 mil­lion.

SBG’S com­mis­sions rose to Sh144.9 mil­lion from Sh114.6 mil­lion, with ex­penses fall­ing by Sh22 mil­lion to Sh127.4 mil­lion.

Genghis cut net loss from Sh98 mil­lion in the first half 2016 to Sh72 mil­lion this year, on the back of a 33.2 mil­lion in­crease in brokerage com­mis­sions to Sh64.2 mil­lion and a Sh9.2 mil­lion fall in ex­penses to Sh134.2 mil­lion.

King­dom Se­cu­ri­ties re­lied on a Sh10.3 mil­lion fall in ex­penses to Sh34.7 mil­lion to lower net loss to Sh2.4 mil­lion from Sh4.6 mil­lion. This was af­ter their brokerage com­mis­sion de­clined by four per cent to Sh23.9 mil­lion.

Kestrel’s net profit rose to Sh3.5 mil­lion from Sh2.3 mil­lion, KCB Cap­i­tal’s was up to Sh23.2 mil­lion from Sh8.3 mil­lion while Old Mu­tual re­ported a profit of Sh12.4 mil­lion from a loss of Sh14.3 mil­lion. Ster­ling Cap­i­tal and Faida In­vest­ment Bank how­ever bucked the trend, record­ing profit de­clines dur­ing the pe­riod as their com­mis­sion in­come dropped.

Faida re­ported a loss of Sh6.9 mil­lion com­pared to a profit of Sh6.3 mil­lion in June 2016, while Ster­ling recorded a loss of Sh3.2 mil­lion com­pared to a profit of Sh54,491 in June 2016.

FILE

MAR­KET A worker at the NSE.

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