Nairobi Securities Exchange : ANNOUNCEMENTS OF UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022

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ANNOUNCEMENT OF UNAUDITED GROUP RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2022

Abstract Consolidated Assertion of Revenue or Loss and	6 Months Ended	6 Months Ended	12 Months Ended
Different Complete Revenue For the	30.06.2022	30.06.2021	31.12.2021
	Unaudited	Unaudited	Audited
	Kshs ‘000	Kshs ‘000	Kshs ‘000
Transactions levy – Fairness	129,806	167,335	329,777
Transactions levy – Bonds	47,427	32,943	66,988

3.2%		80%	20%	4%
DATA VENDING	TOTAL ASSETS
	INCOME INCREASED BY	DECREASED BY

Information merchandising revenue	50,302	27,994	52,452
Annual, preliminary and extra itemizing charges	35,253	36,563	72,041
Curiosity revenue	58,311	48,346	105,752
Capital achieve on buying and selling ebook	–	21,184	28,451
Unquoted securities platform charges	4,530	1,010	5,958
Dividend from fairness funding	6,047	6,459	6,500
Different revenue		29,189	26,988	46,348
Whole revenue		360,865	368,822	714,267
Employees prices	95,934	95,320	171,841
Methods upkeep prices	24,727	28,423	54,636
Depreciation and amortisation	25,821	30,122	54,915
Constructing and workplace prices	32,558	30,715	52,802
Administrators’ emoluments	23,607	23,388	43,605
Different working bills		72,412	48,675	110,033
Whole bills		275,059	256,643	487,832
Revenue earlier than truthful worth actions	85,806	112,179	226,435
Provision for anticipated credit score losses and bond mark to market valuation	(17,930)	(4,811)	(12,178)
Share of (loss)/revenue of affiliate		(8,185)	601	(3,389)
Revenue earlier than taxation	59,691	107,969	210,868
Taxation cost		(19,453)	(30,576)	(78,334)
Revenue for the 12 months	40,238	77,393	132,534
Different complete revenue		44,808	23,159	26,721
Whole complete revenue for the 12 months		85,046	100,552	159,255

Earnings Per Share* – Primary and diluted (Kshs)	0.15	0.30	0.51
*EPS primarily based on no. of shares	260,391,401	260,004,000	259,501,000

Abstract Consolidated Assertion of Monetary Place	30.06.2022	30.06.2021	31.12.2021
As At	Unaudited	Unaudited	Audited
	Kshs ‘000	Kshs ‘000	Kshs ‘000
Belongings

OPERATING ENVIRONMENT AND MARKET PERFORMANCE – FIRST HALF OF 2022

In keeping with the Worldwide Financial Fund (IMF), international financial development for 12 months 2022 has been projected at 3.2% down from the 6.1% development recorded in 2021. That is on account of elementary macroeconomic developments within the first half of the 12 months such because the geo-political tensions in Jap Europe attributable to the continued Russia-Ukraine battle that continues to influence on international financial commerce particularly the provision of meals and power. The battle has affected provide chains resulting in elevated international inflation in addition to the tightening of the monitory setting globally.

Inflation was revised upwards to six.6% in superior economies and 9.5% in rising and creating economies, an upward revision of 0.9% and 0.8% respectively. Kenya’s GDP development primarily based on the grant financial outlook is projected to lower to six% in comparison with 7.6% in 2021.

Throughout the first half of this 12 months, total inflation has risen to 7.9% in June 2022 primarily as a consequence of rising fundamental meals costs and gasoline.

The Central Financial institution Fee was retained at 7.5% as a consequence of constructive influence seen from tightening financial coverage, easing fiscal coverage on sure commodities and provision of subsidies to ease inflationary pressures through the interval. The Kenyan Shilling averaged Kshs.115 in opposition to the US Greenback in H1 2022

The aforementioned components coupled with the final election weighed closely on home and institutional traders affecting buying and selling exercise in addition to the costs of listed securities on the NSE.

The Authorities raised roughly Kshs. 406.13 Billion in Treasury Bonds by the issuance of fastened price and infrastructure bonds. The bonds had been oversubscribed in most presents depicting excessive stage of curiosity within the fastened revenue market.

MARKET PERFORMANCE

Kshs. 167.3 Million for H1 2021 to Kshs. 129.8 Million in H1 2022.

Bond buying and selling levies additionally decreased by 17.8% from Kshs. 32.9 Million in H1 2021 to Kshs. 27.1 Million in H1 2022 on decreased secondary buying and selling exercise on account of elevated market yields supplied within the main market. This lower was decreased by Kshs. 20 Million transaction bond levies recognised as revenue in H1 2022, which was beforehand earned by CDSC now ceded to the NSE. That is primarily based on bond levies earned by CDSC at 33% for the 12 months 2021 and 50% for the 12 months 2022.
Our knowledge enterprise recorded a powerful efficiency growing from Kshs.
1. Million in H1 2021 to Kshs. 50.3 Million in H1 2022 owing to an enhanced institutional gross sales technique.
Curiosity revenue elevated by 20% from Kshs. 48.3 Million in H1 2021 to Kshs. 58.3 Million in H1 2022 as a consequence of our lively treasury administration.
Whole bills elevated by 7% from Kshs 256.6 Million in H1 2021 to Kshs. 275.1 Million in H1 2022 primarily on elevated market lobbying and advocacy bills.
Provision for anticipated credit score loses and bond mark to market valuation expense elevated by Kshs.13 Million in H1 2022 over H1 2021 on unrealized loss on mark to market valuation on the treasury bonds portfolio held as on the finish of H1 2022.
Share of revenue of affiliate declined to a lack of Kshs. 8.1 Million in H1 2022 from a revenue of Kshs. 0.6 Million in H1 2021 owing to decreased enterprise efficiency.
Different complete revenue resulted from the constructive motion of our fairness funding which amounted to Kshs. 44.8 Million.
Whole property decreased marginally by 4% from Kshs. 2.44 Billion in H1 2021 to Kshs. 2.34 Billion as at H1 2022 on account of a write down of our fastened property and fee in 2021 of a complete Kshs 267 Million on the 2020 ultimate dividend and 2021 particular dividend.
Non-currentliabilities as at each intervals (2022 and 2021) embody Kshs.
1. Million contribution obtained from a clearing member in 2019 in direction of the NSE Derivatives Settlement Assure Fund.
Present liabilities stood at Kshs. 391 Million on the shut of H1 2022 and features a second particular and ultimate dividend payable for the 12 months 2021 of Kshs. 234 Million.

Non present property				1,290,924	1,123,275		1,067,117
Present property				1,052,817	1,318,919		1,147,275
Whole property				2,343,741	2,442,194		2,214,392
Fairness and liabilities

Share capital				1,041,567	1,040,017		1,040,017
Share premium				279,459	278,579		278,579
Income reserves				552,506	820,749		746,246
Non controlling curiosity				17,492	17,876		17,518
Different reserves				47,777	(593)		2,969
Non present liabilities				13,966	14,983		15,103
Present liabilities				390,974	270,583		113,960
Whole shareholders’ funds and liabilities				2,343,741	2,442,194		2,214,392


Abstract Consolidated Assertion of Money Flows				6 Months Ended	6 Months Ended	12 Months Ended
For The

						30.06.2022		30.06.2021	31.12.2021
						Unaudited		Unaudited	Audited
						Kshs ‘000		Kshs ‘000	Kshs ‘000
Money flows from working actions
Money generated from operations				60,712		25,037		140,624
Tax paid				(57,535)		(58,780)		(85,391)
Internet money generated from/(utilized in) working actions				3,177		(33,743)		55,233
Internet money (utilized in)/generated from investing actions				(186,006)		118,153		172,469
Internet money utilized in financing actions				(21,304)		–		(256,033)
(Lower)/improve in money and money equivalents				(204,133)		84,410		(28,331)
Money and money equivalents in the beginning of the interval	374,417		402,748		402,748
Money and money equivalents on the finish of the interval				170,284		487,158		374,417


Abstract Consolidated Assertion of Modifications				Revaluation		Non
in Fairness For the Six Months Ended	Share	Share	& Different	Retained Controlling
			Capital	Premium	Reserves	Earnings	Curiosity	Whole
			Kshs ‘000	Kshs ‘000 Kshs ‘000	Kshs ‘000	Kshs ‘000	Kshs ‘000
At 1 January 2021	1,038,003	277,185	(23,752)	883,258	15,509	2,190,203
Revenue for the interval	–	–	–	75,026	2,367	77,393
Different complete revenue, web of tax	–	–	23,159	–	–	23,159
2020 dividend declared within the 12 months	–	–	–	(137,535)	–	(137,535)
Challenge of shares to worker share possession plan	2,014	1,394	–	–	–	3,408
At 30 June 2021 (Unaudited)	1,040,017	278,579	(593)	820,749	17,876	2,156,628
Revenue for the interval	–	–	–	55,499	(358)	55,141
Different complete revenue, web of tax	–	–	3,562	–	–	3,562
2021 particular dividend declared within the 12 months	–	–	–	(130,002)	–	(130,002)
At 31 December 2021 (Audited)	1,040,017	278,579	2,969	746,246	17,518	2,085,329
Revenue for the interval	–	–	–	40,264	(26)	40,238
Different complete revenue	–	–	44,808	–	–	44,808
2021 second particular dividend declared within the 12 months	–	–	–	(130,002)	–	(130,002)
2021 ultimate dividend declared within the 12 months	–	–	–	(104,002)	–	(104,002)
Challenge of shares to worker share possession plan		1,550	880	–	–	–	2,430
At 30 June 2022 (Unaudited)	1,041,567	279,459	47,777	552,506	17,492	1,938,801

Explanatory Notes

The accounting insurance policies utilized in making ready these monetary statements are according to these

On the shut of H1 2022, fairness turnover decreased by 22.41% to face at Kshs. 54 Billion in comparison with Kshs. 69.7 Billion recorded in H1 2021. The decline in fairness turnover was attributable to a discount in buying and selling exercise primarily from worldwide and home institutional traders. This was on account of worldwide institutional traders reallocating capital to international fastened revenue property, while home institutional exercise declined owing to reallocation of capital to home fastened revenue property.

Bonds market turnover declined by 17.85% within the first half of 2022 in comparison with the same interval in 2021. As at June 30 2022, complete bonds turnover stood at Kshs. 387 Billion in comparison with Kshs. 471 Billion recorded over the same interval in 2021.

Fairness market capitalization stood at Kshs. 1.94 Trillion in comparison with Kshs.

2.7 Trillion recorded over the same interval in 2021. The whole worth of excellent bonds stood at Kshs.3.59 Trillion.

The NSE 20 Share Index declined by 15% to face at 1,612.89 factors on the shut of the assessment interval in comparison with 1,902.57 recorded over the same interval in 2021.

The fairness market continued to witness elevated company actions which noticed corporations strengthen their shareholder capital. These included TPS Serena which issued a debt swap that noticed USD 14.5 Million debt transformed to shares. Financial institution of Kigali (BK) issued a Dividend Re-Funding Plan that noticed traders re-invest their web dividend into unusual shares of BK at a 5% low cost to the share worth. Automotive & Normal additionally issued a bonus situation within the ratio of 1 new share for each 1 share owned.

The bond market attracted one further itemizing bringing the overall variety of excellent company bonds to six with the Kenya Mortgage Refinance Firm which raised Kshs. 1.4 Billion in opposition to presents obtained of Kshs. 8.1 Billion. We proceed to witness demand for fastened revenue securities on the Trade. The Trade stays a lovely venue for elevating medium to long run capital.

The Derivatives market recorded a turnover of Kshs. 72 Million with 2,189 contracts traded. Throughout the interval, we additionally launched 4 new contracts specifically Co-operative Financial institution, Customary Chartered Financial institution, I & M Financial institution and NCBA Financial institution. The market now has a complete of 12 contracts out there to commerce. As international and native markets proceed to expertise weakening sentiment, we see a possibility for traders to commerce derivatives.

This 12 months, the listed Trade Traded Fund (ETF) witnessed a rise in demand with H1 2022 turnover of Kshs. 372 Million which was a 576% development over final 12 months. The demand for the New Gold ETF was pushed by the defensive nature of the asset class that continues to understand throughout this unstable interval.

The Unquoted Securities Platform (USP) was launched in 2021 with Acorn Holdings itemizing two Actual Property Funding Trusts (REITs). The REITs have traded Kshs. 408 Million in H1 2022, with a cumulative buying and selling quantity of Kshs. 795 Million since launch in July 2021 and Kshs. 3 Billion raised on the platform.

FINANCIAL HIGHLIGHTS

The Group reported a revenue earlier than truthful worth actions of Kshs. 85.8 Million in H1 2022 in comparison with Kshs. 112.2 Million in H1 2021, representing a decline of 24%. Revenue after Tax stood at Kshs. 40.2 Million in H1 2022 from Kshs. 77.3 Million in H1 2021, a decline of 48%.

Share capital elevated by Kshs. 1.5 Million as a consequence of shares issued to workers by the worker share possession plan.
Return on property and return on fairness decreased from 6.1% and seven.0% respectively within the six months ended 30 June 2021 to three.4% and 4.2% respectively in the identical interval in 2022.

OUTLOOK – SECOND HALF OF 2022

Administration is hopeful that buying and selling will regularize within the second half of the 12 months after the election course of, which affected investor sentiments and buying and selling exercise, is accomplished. The Trade will proceed to interact potential issuers to contemplate capital markets monetary options to fund their enterprise development and growth.

With the rise of issuances within the company bond market, we’ll proceed to curiosity corporations to make use of this product to enrich their funding wants. The NSE is a lovely avenue for the itemizing of bonds and we’ll guarantee full availability of our infrastructure to deepen the buying and selling of Authorities bonds.

The Unquoted Securities Platform (USP) has enabled the Trade to discover the untapped alternatives that exists within the ever rising non-public over-the-counter markets area in Kenya. The Platform presents a really distinguished worth proposition by elevated transparency, higher turnaround time in closure of trades and an avenue for capital elevating for entities that aren’t but prepared for the primary market. The platform has raised over Kshs. 3 Billion for the issuers on the platform. We anticipate to see further listings and capital elevating exercise for personal corporations, SACCOs and current OTC registers.

Different asset lessons on the NSE which embody the Trade Traded Funds (ETFs) and Actual Property Funding Trusts have additionally reported good efficiency in H1 2022. ETFs have seen materials and heightened demand by traders who opted to purchase the underlying asset, gold, in a bid to hedge in opposition to worth volatility in fairness markets. We proceed to help issuers and traders who’re taken with these asset lessons.

The NSE will proceed to concentrate on focused investor and issuer boards to articulate the case for the capital markets. We are going to proceed to carry focused boards to sensitize potential purchasers on the advantages of NSE merchandise.

The NSE launched the Environmental, Social and Governance (ESG) Disclosures Steering Guide to supply a framework for ESG reporting in Kenya in November 2021. With the rising curiosity in sustainable finance, the NSE will proceed to advertise sustainability reporting in addition to uptake of sustainable finance merchandise by selling them to purchasers engaged in creating local weather pleasant property. The NSE is within the course of of building a carbon buying and selling platform to facilitate the buying and selling of carbon credit.

We stay optimistic of a greater second half of the 12 months 2022.

DIVIDENDS

The Board of Administrators doesn’t advocate an interim dividend for the primary half of the 12 months 2022.

By Order of the Board

used for the Group’s 2021 annual monetary statements. These unaudited monetary statements are extracts from the books of accounts of the Group and had been permitted by the Board of Administrators on 26 August 2022.

• Fairness turnover stood at Kshs. 54 Billion in H1 2022, in comparison with Kshs. 69.7	Geoffrey O. Odundo
Billion in the identical interval in 2021 as a consequence of decrease than anticipated buying and selling	Chief Govt
exercise particularly from the worldwide and home institutional	Nairobi
traders. This led to a discount in fairness buying and selling levies by 22.4% from	26 August 2022

Disclaimer

NSE – Nairobi Securities Trade Ltd. revealed this content material on 26 August 2022 and is solely liable for the knowledge contained therein. Distributed by Public, unedited and unaltered, on 26 August 2022 15:40:01 UTC.

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All information about NAIROBI SECURITIES EXCHANGE PLC

Gross sales 2021	702 M – –
Internet revenue 2021	131 M – –
Internet money 2021	784 M – –
P/E ratio 2021	15,9x
Yield 2021	5,00%

Capitalization	1 967 M 16,4 M –
EV / Gross sales 2020	1,99x
EV / Gross sales 2021	1,84x
Nbr of Workers	44
Free-Float	90,4%

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Nairobi Securities Exchange : ANNOUNCEMENTS OF UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022

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