Stockbrokers earnings rise
Industry looks up after a lean two years of falling income
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.
MARKET A worker at the NSE.