The Nairobi Securities Exchange has posted a 22 per cent growth in net profits driven by increased trading commissions.

The exchange reported a profit of Ksh320 million ($3.47 million) up from Ksh262 million ($2.85 million) in 2013.

“This was driven majorly by the 39 per cent increase in equity turnover from Ksh311 billion ($3.38 million) in 2013 to Ksh431 billion ($4.68 million) in 2014,” said Geoffrey Odundo, chief executive of the NSE.

The bourse gets a commission of 0.12 per cent of the transaction amount for each deal done at the market. This earned it an estimated Ksh512 million ($5.56 million) compared to Ksh373 million ($4.05 million) the previous year.

Its total operating income was Ksh641 million ($6.96 million) up from Ksh488 million ($5.3 million) in 2013.

NSE received admission fees from companies that issued additional shares last year through rights issues such as NIC Bank, CfC and DTB.

Secondary trading activity in the fixed income market rose by 11 per cent to Ksh1 trillion ($10.86 billion) from Ksh914 billion ($9.93 billion) earning the exchange higher commissions.

NSE self-listed last year after demutualisation which has seen its shareholders roll grow to over 15,000 from previous 24 owners. It was previously owned by 22 stockbrokers, the government and Investors Compensation Fund.

READ: Finally, East Africans’ chance to own slice of Nairobi bourse

Entry of new owners pushed the bourse’s capital levels to Ksh778 million ($8.45 million) from Ksh24.5 million ($266,172).

The exchange hopes to admit new companies in the market through the Growth Enterprise Market Segment and the Real Estate Investment Trusts (Reits).

It also hopes to launch the derivatives market with single stock and index futures being the initial products. Introduction of the derivatives market is expected to boost foreign investors’ participation at the market said brokerage firm Kestrel Capital.

READ: Mid-size firms shy away from bourses, cite high costs, over-regulation

The management recommended a dividend of Ksh0.38 ($0.004) per share.