Capital Markets Authority records Sh153m profit

By JAMES ANYANZWA

NAIROBI, KENYA: Capital Markets Authority (CMA) posted a pre-tax profit of Sh153.58 million during the financial year ended June 30, 2013, according to the latest financial statements.  This is compared to a loss of Sh7.72 million in the previous year.

The turnaround in CMA’s fortune comes ahead of its planned merger with the other financial regulators — Retirement Benefits Authority (RBA) and Insurance Regulatory Authority (IRA) — to form a single financial sector regulator.

TRANSACTION FEES

According to CMA’s annual report for 2013, the authority’s leap onto the profitability path was fuelled by increased income from Government bonds and capitalisation fees and the Nairobi Securities Exchange (NSE) transaction fees.

According to the report, CMA’s total income jumped 31 per cent to Sh672.31 million from Sh510.29 million in the previous year.

Government bonds and capitalisation fees grew 38 per cent to Sh246.75 million from Sh177.91 million while NSE transaction fees advanced 81 per cent to Sh316.16 million from Sh174.33 million in a similar period. Spending on salaries and staff costs went up five per cent to Sh280.93 million from Sh266.45 million.